Norfolk Southern hauled more coal for domestic consumption in the third quarter than coal for export, reflecting a trend in where coal moves by railroad.
In the three months ending on Sept. 30, Norfolk Southern moved nearly 8.8 million tons of coal for U.S. power plants, according to a financial presentation on Thursday, a 6% increase from the year before.
That’s the reverse of a year ago, when the railroad moved 8.8 million tons for overseas markets. This year, the railroad’s export tonnage fell 16%.
Export coal has fallen this year amid foreign competition in metallurgical coal, the kind used to make steel.
Norfolk Southern taps southern West Virginia’s coal reserves, which are rich in met coal. It is shipped by rail to the port of Norfolk, Virginia.
Rival CSX has seen a similar change in its coal shipment patterns. Norfolk Southern is preparing for a merger with the nation’s biggest rail carrier, Union Pacific.
The shift in coal shipments reflects two other factors. One is the rising price of natural gas, which makes coal more competitive to generate electricity.
It could as well reflect the energy policy preferences of the Trump administration, which has favored fossil fuels instead of renewables.
The White House has ordered at least one coal generator in Michigan to stay on the grid past its retirement date, and there could be others.
For the first nine months of the year, Norfolk Southern’s domestic coal shipments surged 11%, while its export tonnage declined 7%.
Copyright 2025 West Virginia Public Broadcasting
