UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.   20549

FORM 10-Q

(X)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended JUNE 30, 2003

( )

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file numbers 1-743; 1-3744; 1-4793; 1-546-2

NORFOLK SOUTHERN RAILWAY COMPANY

(Exact name of registrant as specified in its charter)

Virginia

53-6002016

(State or other jurisdiction of

(IRS Employer Identification No.)

incorporation or organization)

Three Commercial Place

Norfolk, Virginia

23510-2191

(Address of principal executive offices)

Zip Code

Registrant's telephone number, including area code

(757) 629-2680

No Change

(Former name, former address and former fiscal year,

if changed since last report.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13

or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter

period that the registrant was required to file such reports), and (2) has been subject to such filing

requirements for the past 90 days.  

(X) Yes   

(  ) No

Indicate by check mark whether registrant is an accelerated filer (as defined in Rule 12b-2 of The Exchange Act).

(  ) Yes   

(X) No

The number of shares outstanding of each of the registrant's classes of Common Stock, as of the last

practicable date:

Class

Outstanding as of June 30, 2003

Common Stock (par value $1.00)

                16,668,997

Page

Part I.

Financial information:

Item 1.

Financial statements:

Consolidated Statements of Income

3

Three and Six Months Ended June 30, 2003 and 2002

Consolidated Balance Sheets

4

June 30, 2003 and Dec. 31, 2002

Consolidated Statements of Cash Flows

5

Six Months Ended June 30, 2003 and 2002

Notes to Consolidated Financial Statements

6

Independent Accountants' Review Report

12

Item 2.

Management's Discussion and Analysis of

13

Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures

19

About Market Risks

Item 4.

Controls and Procedures

19

Part II.

Other Information:

Item 6.

Exhibits and Reports on Form 8-K

20

Signatures

21

Exhibit Index

22

Three months Ended

Six Months Ended

June 30,

June 30,

2003

2002

2003

2002

Railway operating revenues:

   Coal

$

389 

$

350 

$

743 

$

709 

   General merchandise

944 

948 

1,862 

1,817 

   Intermodal

256 

249 

503 

478 

      Total Railway Operating Revenues

1,589 

1,547 

3,108 

3,004 

Railway operating expenses:

   Compensation and benefits

401 

377 

801 

760 

   Materials, services and rents

487 

454 

946 

 907 

   Conrail rents and services (Note 2)

118 

115 

237 

 236 

   Depreciation

123 

125 

246 

248 

   Diesel fuel

93 

84 

197 

165 

   Casualties and other claims

48 

37 

99 

72 

   Other

73 

78 

147 

139 

      Total Railway Operating Expenses

1,343 

1,270 

2,673 

2,527 

         Income from railway operations

246 

277 

435 

477 

Other income   (expense) - net

(65)

(60)

(116)

(112)

Interest expense on debt

(5)

(7)

(12)

(16)

         Income before income taxes and

            accounting changes

176 

210 

307 

349 

Provision for income taxes

68 

84 

119 

138 

         Income before accounting changes

108 

126 

188 

211 

Cumulative effect of changes in accounting

   principles, net of taxes (Note 1)

- -- 

- -- 

104 

- --  

      Net Income

$

108 

$

126 

$

292 

$

211 

See accompanying notes to consolidated financial statements.