What Would Be The Impact Of A 100 Basis Points Increase In Norfolk Southern’s Share Of U.S. Rail Intermodal Shipments?

by Trefis Team
-17.70%
Downside
141
Market
116
Trefis
NSC
Norfolk Southern
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The completion of the Panama Canal expansion in 2016 is expected to boost container traffic at East Coast ports at the expense of West Coast ports, benefiting rail companies operating in the Eastern U.S., such as Norfolk Southern. As a result, every 100 basis points increase in the share of U.S. rail intermodal shipments by 2020 from the base case would boost intermodal freight revenue and total revenue for Norfolk Southern by around 3% and 1%, respectively.

100 BPS Increase In Intermodal Market Share 1

100 BPS Increase In Intermodal Market Share 2

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Norfolk Southern

 

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