2 0 1 5 E m e r a l d C o a s t Tr a n s p o r t a t i o n S y m p o s i u m

S t e p h a n i e L a n e , D i r e c t o rC S X I n d u s t r i a l D e v e l o p m e n t

N o v e m b e r 1 3 , 2 0 1 5

About CSX

What exactly is a freight railroad?

Freight rail in the supply chain: the logistics long view

Freight rail benefits and challenges

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23 STATES District of Columbia and

two Canadianprovinces.

Logistics include

Door-to-doorIntermodal

Rail-truck transload Port-rail transload

21,000 MILESConnecting 240 shortlines,

70 ocean, river, and lake ports

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America’s Freight Railroads:

Privately owned

Will spend $29 Billion on its network in 2015

$79,000,000 a day

Tax-Free Infrastructure

Source: AAR

How Rail Works

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How Rail (really) Works

And much more!

If its in your life, its on our trains…

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Railroads operate similar to a postal system:

Local routes feeding to….Processing centers or hubs, forwarding to….Final destination

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How Rail Works

Freight rail in the supply chain:

the logistics long view

Important part of a balanced North American Freight

System

Freight Transportation Mode Share

Truck 75%

Rail 15%

Wa-ter

3.50% Pipeline 5.60%

Tons

Rail 41%

Truck 29%

Pipe-line 20%

Water 10%

Ton-miles

Trucks move more tons, mostly over short distances

Freight Rail has the largest share of

freight per ton-mile

• Trucking provides important first mile-last mile delivery.

• Many locations and industries cannot be direct rail served, trucks provide a critical connection.

• Freight rail is optimized over distances – longer hauls, greater quantities, heavier loads.

A balanced system needs strong integral components:

American logistics are complex and changing: Factors likely to shape transportation & logistics in the future

• Infrastructure Investment – or lack there of!• Regulatory considerations• Domestic energy revolution with global implications such as “Re-shoring”:

Companies are now focusing on locating production closer to demand, in part because of cheap energy.

• Supply chain optimization: As American cities grow and demographics change, supply chains are re-optimizing around more densely populated areas, affecting transportation routing

• Studies indicate that even with fewer manufacturing jobs, transportation and logistics demand will grow thanks to automation, 3-D printing, near-shoring, et cetera

Summary:• Demand for transportation is growing

with population and economic activity • Congestion on roadways is getting

worse• Infrastructure funding is facing crisis

levels• Trucking industry facing greater

challenges

Benefits of Freight Rail:Economy and Environment

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Trains can move a ton of freight 483 miles on a single gallon of fuel

One train can carry the load equivalent of 280 trucks

Lower emissions = cleaner air

Less freeway congestion = safer freeways

Reduced public costs

High capital costs and limited existing rail infrastructure

Increasing freight volume

Passenger service integration

Freight Railroad Challenges

Identify and protect freight rail corridors

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Environmental benefits Road safety improvements Congestion reduction Economic driver for business

and job creation

The Future:

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Create inventories of industrial sites to attract freight rail uses

Many areas are challenged by topography which limits the number and size of sites which can be served with rail within a reasonable cost - so guard those sites FIERCELY.

Use long term comprehensive planning opportunities to enhance potential rail served locations for job-creating developments

Understand your regions business environment to attract rail users

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CSX Shovel-Ready Rail-Served Sites

Qualify rail-served sites attractive to manufacturers from a variety of industries

Encourage attractive, well-located rail sites to be retained for rail opportunities

Maintain strict, high standard of certification (Best in class)

Stephan ie Lane D i rector CSX

Reg iona l Deve lopment

s t e p h a n i e _ l a n e @ c s x . c o m