
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, May 13, 1994                   TAG: 9405130114
SECTION: BUSINESS                    PAGE: A11   EDITION: METRO 
SOURCE: PHIL MURRAY LANDMARK NEWS SERVICE
DATELINE: WILLIAMSBURG                                 LENGTH: Short

NS KEEPS EXPANSION ON HOLD

The export coal market is beginning to show some signs of life, but the chairman of Norfolk Southern Corp. says expansion plans for its coal piers in Norfolk are still on hold.

David R. Goode, Norfolk Southern's chairman and chief executive, told shareholders Thursday he is encouraged by export activity during the first quarter. But it is too early to predict whether 1994 will show a significant improvement over last year's lackluster performance, he said.

Norfolk Southern's revenues from hauling coal fell by 6 percent in 1993 because of the continuing recession and mild winter weather in Europe, where some of the company's prime export customers are located. The first-quarter coal revenue figures this year, however, were up 5 percent.

``I think we are seeing some signs that it may be getting a little better,'' Goode said in response to questions. ``But with the volumes there now, we won't be spending any money on expansions'' at Lamberts Point.

NS announced plans 18 months ago for a $200 million expansion program at its Lamberts Point export complex in Norfolk. By the end of the decade, construction would nearly double capacity there. Those plans were put on hold when the bottom dropped out of the coal export market.

The company, however, is proceeding with plans for a coal storage facility in Isle of Wight County in Southside Virginia.

by CNB