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 SEPT. 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 Sept. 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 Nine Months Ended Sept. 30, 2003 and 2002

Consolidated Balance Sheets

4

Sept. 30, 2003 and Dec. 31, 2002

Consolidated Statements of Cash Flows

5

Nine Months Ended Sept. 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 1.

Legal Proceedings

20

Item 6.

Exhibits and Reports on Form 8-K

20

Signatures

21

Exhibit Index

22

Three months Ended

Nine Months Ended

Sept. 30,

Sept. 30,

2003

2002

2003

2002

Railway operating revenues:

   Coal

$

372 

$

371 

$

1,115 

$

1,080 

   General merchandise

911 

917 

2,773 

2,734 

   Intermodal

270 

268 

773 

746 

      Total Railway Operating Revenues

1,553 

1,556 

4,661 

4,560 

Railway operating expenses:

   Compensation and benefits

396 

390 

1,197 

1,150 

   Materials, services and rents

449 

465 

 1,395 

 1,372 

   Conrail rents and services (Note 2)

119 

112 

 356 

 348 

   Depreciation

124 

125 

370 

373 

   Diesel fuel

86 

81 

283 

246 

   Casualties and other claims

44 

57 

143 

129 

   Other

68 

67 

215 

206 

      Total Railway Operating Expenses

1,286 

1,297 

3,959 

3,824 

         Income from railway operations

267 

259 

702 

736 

Other income   (expense) - net

(60)

(44)

(176)

(156)

Interest expense on debt

(6)

(6)

(18)

(22)

         Income before income taxes and

            accounting changes

201 

209 

508 

558 

Provision for income taxes

74 

85 

193 

223 

         Income before accounting changes

127 

124 

315 

335 

Cumulative effect of changes in accounting

   principles, net of taxes (Note 1)

- -- 

- -- 

104 

- --  

      Net Income

$

127 

$

124 

$

419 

$

335 

See accompanying notes to consolidated financial statements.