TRANSPLEX 2007Freight Demand and Planning

in FloridaJuly 12, 2007

TRANSPLEX 2007Freight Demand and Planning

in FloridaJuly 12, 2007

22

Overview

Global Transportation Environment

CSX Network Strategy

Public Private Partnerships

33

Global Supply Chain – Key Drivers for Change

Constrained Infrastructure and Capacity

Evolving Security Requirements

Environmental Issues

Increasing Complexity

44

Constrained Capacity

Capacity is constrained globally Highway capacity has not kept pace with

transportation demand West coast ports experience congestion Rail ton miles have increased while the rail

network has shrunk Existing and anticipated choke points present

significant opportunities for rail growth

55

Heightened Security Concerns

Security focus on transportation is increasing New security measures could require significant

capital investments New guidelines for security of TIH rail shipments Recent federal government appropriations

included $1.2 billion for rail security

66

Environmental Focus on Transportation

New air emissions regulations target rail and ports New emissions controls can increase fuel costs NIMBY concerns with capacity expansions …But, rail has significant advantages in fuel

efficiency and environmental impact

77

Capacity and Demand Legacy rail system built for Northeast

manufacturing and population base Increasing imports and population shifts drive rail

growth along different corridors Highway congestion and trucking challenges

heighten need for rail Capacity constraints require new infrastructure

investment to keep pace AASHTO report highlights need for increased rail

capacity

88

2005 Container Imports (TEU)

7 M

Europe TrafficChina Traffic Other Asia Traffic S. America Traffic

• China: 12 M

• Other Asia: 5 M

• Europe: 3M

• Central / South America: 2 M

• Rest of World: 1M

99

2020 Container Imports (TEU)

7 M

Europe TrafficChina Traffic Other Asia Traffic S. America Traffic

• China: 30 M

• Other Asia: 12 M

• Europe: 7M

• Central / South America: 5 M

• Rest of World: 2M

1010

Off-Shoring and Imports Driving Port Growth

4.5

15.8

NY/NJ

1.85.6

Virginia

1.9

6.6

Charleston

1.7

9.4

Savannah1.4

6.2

Houston

TEU in Millions

2020

2004

Source: Containerization International and TranSystems.

CSX Intermodal NetworkCSX Intermodal Network

13.1

LA/LB

59.4

3.67.0

Seattle/Tacoma

2.0 3.4

Oakland

1111

Increasing Port Volumes Drive Rail Volumes

Today 2020

Source: TranSystems and USDOT Federal Railroad Administration Office of Policy

1212

Highway Congestion Worsens

Source: USDOT FHWA Freight Analysis Framework

Today 2020

1313

Coal

I-95Corridor

WaterlevelRoute

SoutheastCorridor

CSX Network Overview

Network covers 22,000 miles in 23 U.S. States

Network rationalization has consolidated core assets

Ongoing capacity expansion projects target key growth corridors

1414

Network Well Positioned for Rail Renaissance

Serves every major market in the east

Direct access to all Atlantic and Gulf ports

Access to Pacific ports with BNI/UNP alliances

Miami

Chicago

Savannah

Charleston

Baltimore

Memphis

Charlotte

Mobile

Nashville

Atlanta

Detroit

Jacksonville

Tampa

BuffaloSyracuse

Cleveland

ColumbusCincinnati

Evansville

Boston

Philadelphia

New York

New Orleans

St Louis Portsmouth

Indianapolis

Population in Major Metropolitan Areas

GT 10,000,000

5,000,000 – 10,000,000

2,500,000 – 5,000,000

1,500,000 – 2,500,000

1,000,000 – 1,500,000

1515

Investing in Safety

In the past two years CSX:• Spent more than $970 million on

crosstie and rail maintenance• Installed more than 5 million

new crossties• Hired and trained 800 new

maintenance of way employees, increasing maintenance forces by more than 250

• Reduced train accidents by 30%

1616

CSX Capital Investment

$913

$872

$1,003

$982

$960

$1,055

$1,442

2000

2001

2002

2003

2004

2005

2006

$7.2 Billion Since 2000

1717

2004 Traffic Levels2004 Traffic Levels

Surplus CapacityAt or Near Capacity Capacity Constrained

2008 Forecast Traffic Levels2008 Forecast Traffic Levels

Surplus CapacityAt or Near Capacity Capacity Constrained

Feb 2005 Problem Statement:Current network constraints will increasewithout new capacity investments

1818

2008 Traffic Levels (05) w/Capacity done 2008 Traffic Levels (05) w/Capacity done

Surplus CapacityAt or Near Capacity Capacity Constrained

Projected Capacity Solution: Completing the capacity projects will bring us reliability and recoverability on SEE and Riverline (based on the ‘05 forecast of ’08)

2008 Forecast Traffic Levels2008 Forecast Traffic Levels

Surplus CapacityAt or Near Capacity Capacity Constrained

1919

Building New Capacity

New Orleans

New YorkChicago

Boston

Miami

CapacityProjects

2006 Capital Spending

Infrastructure53%

New Capacity18%

Locos14%

Cars & Other15%

2020

Public Private Partnerships

CSX is responding to calls for expanded passenger rail in the cities we serve

Meeting the public demand for passenger rail requires expanded capacity

I-95 “Corridor of the Future” requires integrated freight and passenger expansion strategy

2121

CSXT operates two main lines in central Florida

— A-Line through Orlando

— S-Line through Ocala

Orlando commuter project would use A-Line tracks

Freight would shift to S-Line

In Focus – FloridaCentral Florida Commuter Rail

2222

In May 2007, CSX submitted it’s Southeast I-95 Corridor as a candidate for the Corridor of the Future

CSX’s Vision is a corridor that will enable both passenger and freight trains to:

— Travel faster— With greater safety— With reliability and recoverability— As well as allowing for increased freight

and passenger train volumes

Significant infrastructure investments will be required to make this vision a reality