DATE: Saturday, March 22, 1997              TAG: 9703220418

SECTION: BUSINESS                PAGE: D2   EDITION: FINAL 

SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER 

                                            LENGTH:   36 lines

NORFOLK SOUTHERN OFFERS SEVICE WITH BURLINGTON

In a joint move with the Burlington Northern and Santa Fe Railway Co., Norfolk Southern Railway Co. announced Friday that it has begun offering a new intermodal rail service connecting markets in the west to Louisville, Ky.

The Norfolk-based railroad expects a sizeable revenue boost from the new business, which will improve delivery times in some cases by up to 48 hours, said Russ Ellett, yield manager in Norfolk Southern's intermodal marketing department.

Intermodal shipping involves the movement of truck trailers and the truck-sized containers that can be readily shifted between trucks, ships and rail cars.

Until now, Burlington Northern has used a short-line railroad, the Paducah and Louisville, to haul intermodal traffic from Louisville to its terminal in Kansas City.

Norfolk Southern will take over that haul and bring the trains loaded with containers and trailers straight into Burlington Northern's Kansas City yard, Ellett said. There the trains will be reassembled for the haul to various western markets.

``This is the first time we have had a direct service from Louisville west,'' Ellett said. ``We're expecting a pretty significant boost for our Louisville terminal.''

Most of the traffic will originate in and around Louisville, including southern Indiana, Ellett said. About half the cargo is destined for West Coast ports such as Seattle or Los Angeles for export, he said. The remainder is bound for domestic markets in the West.

Fort Worth, Texas-based Burlington Northern Santa Fe Corp.'s railroad has 31,000 miles of tracks in 27 western states, while Norfolk Southern Corp.'s 14,300-mile network blankets 20 southeastern and midwestern states.

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