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CSX Transportation – How Tomorrow Moves

July 22, 2010

CSX Transportation – How Tomorrow Moves

July 22, 2010

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CSX connects the nation and the globeCSX connects the nation and the globe

The 23 State CSX Network…

30,000 employees

21,000 route miles

1,200+ trains/day

5 million+ carloads

3,500+ locomotives

80,000+ freight cars

Serves 70 ocean, lake and river ports

CSX reinvests 18% of revenue each year into the network.

In Ohio Alone…

3,000 employees

Nearly $200 million in compensation

1,900 railroad miles

3,100 at-grade public and private rail crossings

Nearly $100 million re-invested into the rail network.

. ..Gulfport

Pascagoula

Mobile

.Port Manatee

.

..

.

.Brunswick

Savannah

Charleston

Wilmington

Newport News

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Short Line Railroads Short Line Railroads Extend the Economic Extend the Economic Reach of Rail Reach of Rail with easy access to with easy access to CSX mainlines.CSX mainlines.

Short Line Railroads Short Line Railroads Extend the Economic Extend the Economic Reach of Rail Reach of Rail with easy access to with easy access to CSX mainlines.CSX mainlines.

And with our partners…

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National Transportation Demands and Trends National Transportation Demands and Trends

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Today

Transportation demand is on the rise and congestion is getting worseTransportation demand is on the rise and congestion is getting worse

Today 2020

Source: USDOT FHWA Freight Analysis Framework

CSX Territory

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CSX is working to meet these challengesCSX is working to meet these challenges

Increased need for supply chain flexibility— Shifting global supply chains— Globalization, Panama

Canal expansion favor diversification to East Coast ports

Intermodal freight transport increasingly critical to meeting nation’s transportation needs— Combined efficiency of

freight rail and flexibility of highway transportation

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Current and Planned Double Stack Routes

National Gateway Project

National Gateway: Critical to meeting future freight demandsNational Gateway: Critical to meeting future freight demands

Chicago

New York

Florida

Boston

St. Louis

Memphis

New Orleans

Wilmington

Hampton Roads

Baltimore

NW Ohio Transfer Yard

Pittsburgh

Chambersburg

Columbus

Charlotte

61 clearance projects in 6 states and the District of Columbia to achieve 21’0” clearance.— Construction work varies from

minor modifications to complete reconstruction of bridges, tunnels and other infrastructure.

6 new/enhanced terminals along the National Gateway corridors utilizing the latest technology.

80% of Total Project Costs are Committed

BWI

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National Gateway provides solutions to our nation’s challenges, over $10 billion in public benefits*National Gateway provides solutions to our nation’s challenges, over $10 billion in public benefits*

*2009 TIGER Application and tax/wage information

Stimulates the economy

• Creates over 50,000 jobs and provides economic development through terminal

construction.

Positions U.S. to compete in a global economy

• The National Gateway improves the efficiency of our transportation network and

provides over $3.5 billion in shipper and logistics cost savings.

Reduces highway maintenance costs, congestion and improves safety

• The National Gateway improves safety and highway congestion by maximizing the

efficiency of freight rail and partnering with trucking companies to provide significant

emissions benefits and converting 14.3 billion highway miles traveled to rail.

Lessens greenhouse gas emissions and helps improve air quality

• The National Gateway will improve the flow of freight by rail, reducing fuel

consumption by 2 billion gallons. This improved fuel efficiency saves over 20 million

tons of CO2.

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CSX: How Tomorrow Moves…Responsibly CSX: How Tomorrow Moves…Responsibly

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Rail is sustainableRail is sustainable

Rail has the lowest carbon footprint of all modes, — About 1/3rd of truck— 1 ton of freight moves 436 miles on one gallon of fuel

Rail is Safest land mode of transportation Rail creates NO congestion of the State and Federal Highways Rail is good for National Security (better control and supervision

of shipments) Rail creates value for shippers

— Shippers and receivers want to use rail

CSX Transportation, Inc. is the largest railroad in the Eastern United States and serves over 70 U.S. ports

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Carbon Calculator @ www.CSX.com

Rail can eliminate2/3rds of the CO2

versus truck

Corporate Responsibility: Shippers want to minimize the carbon footprint of their product

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What Travels by Rail? What Travels by Rail?

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If it’s in your life, it’s been on our trains… If it’s in your life, it’s been on our trains…

Building Materials

Household Goods

Agricultural Products

Automobiles

Coal and other Fuels

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A great track record together :CSX and Economic Development Partners

A great track record together :CSX and Economic Development Partners

On average over the past three years we have:— Won 129 new/expanded business— Created 6,000 new jobs— Created $4 billion in local investment

With household names like these:

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CSX Partners for Local Economic Development CSX Partners for Local Economic Development

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Rail Served Communities can create a rail advantage for economic development

Rail Served Communities can create a rail advantage for economic development

All communities which have rail access will have:— Improved access directly into the CSXT high speed rail network— Access to the national rail network— Access to all major US markets and international ports

to global markets— Improved service due to CSXT access redesign— The cost advantage of rail service— A competitive advantage for site location

(Industrial companies requiring rail access for site selection has increase from 10-40% in the past 8 years – source: Deloitte Consulting)

Sustainable transportation is a major factor in demand for railand the rail industry is investing private capital to support a cleaner environment

Partner with CSXT to grow local companies, tax base, jobs

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Together we make a great team!Together we make a great team!

Sustainable transportation for a Growing American Economy

A Public Private Partnership - Let’s Grow Together!