TRANSPLEX 2007 Freight Demand and Planning in Florida July 12, 2007

1. TRANSPLEX 2007Freight Demand and Planning in FloridaJuly 12, 2007

2. Overview • Global Transportation Environment • CSX Network Strategy • Public Private Partnerships

3. Global Supply Chain – Key Drivers for Change • Constrained Infrastructure and Capacity • Evolving Security Requirements • Environmental Issues • Increasing Complexity

4. 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

5. 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

6. 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

7. 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

8. 2005 Container Imports (TEU) • China: 12 M • Other Asia: 5 M • Europe: 3M • Central / South America: 2 M • Rest of World: 1M 7 M S. America Traffic China Traffic Other Asia Traffic Europe Traffic

9. 2020 Container Imports (TEU) • China: 30 M • Other Asia: 12 M • Europe: 7M • Central / South America: 5 M • Rest of World: 2M 7 M S. America Traffic China Traffic Other Asia Traffic Europe Traffic

10. 15.8 7.0 4.5 3.6 59.4 Seattle/Tacoma NY/NJ 3.4 5.6 2.0 1.8 Oakland Virginia 6.6 1.9 Charleston 9.4 13.1 1.7 6.2 1.4 Savannah Houston LA/LB 2004 2020 Off-Shoring and Imports Driving Port Growth CSX Intermodal Network TEU in Millions Source: Containerization International and TranSystems.

11. Increasing Port Volumes Drive Rail Volumes Today 2020 Source: TranSystems and USDOT Federal Railroad Administration Office of Policy

12. Highway Congestion Worsens Today 2020 Source: USDOT FHWA Freight Analysis Framework

13. Waterlevel Route Coal Southeast Corridor I-95 Corridor 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

14. Serves every major market in the east Direct access to all Atlantic and Gulf ports Access to Pacific ports with BNI/UNP alliances 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 Network Well Positioned for Rail Renaissance Boston Syracuse Buffalo Detroit New York Cleveland Chicago Philadelphia Indianapolis Columbus Baltimore Cincinnati St Louis Evansville Portsmouth Charlotte Nashville Memphis Atlanta Charleston Population in Major Metropolitan Areas Savannah Mobile Jacksonville New Orleans Tampa Miami

15. 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%

16. CSX Capital Investment $7.2 Billion Since 2000

17. Feb 2005 Problem Statement:Current network constraints will increasewithout new capacity investments 2008 Forecast Traffic Levels 2004 Traffic Levels

18. 2008 Traffic Levels (05) w/Capacity done 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 Levels

19. Boston Chicago New York Cars & Other 15% Infrastructure 53% Locos 14% Capacity Projects New Capacity 18% New Orleans Miami Building New Capacity

20. 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

21. In Focus – FloridaCentral Florida Commuter Rail • 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

22. 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