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1 Rail – The Intermodal Connection Drew Glassman, AVP Intermodal Marketing CSX Transportation.

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Presentation on theme: "1 Rail – The Intermodal Connection Drew Glassman, AVP Intermodal Marketing CSX Transportation."— Presentation transcript:

1 1 Rail – The Intermodal Connection Drew Glassman, AVP Intermodal Marketing CSX Transportation

2 Holistic focus on controlling supply chain costs Near-sourcing of manufacturing sites due to rising costs in Asia Simplification and rebalancing of supply chain network design Optimization software to improve efficiencies and streamline processes Use of alternate transportation modes, including intermodal 2

3 Truck capacity is imminent concern for future Driver shortages are a threat with economic recovery U.S. Bureau of Labor Statistics reports driver supply is 185,000 below 2007 levels Turnover for Q1 2012 was 90%, the highest since 2008 Driver supply impacted by many macro-factors CSA, HOS and other proposed regulations Aging driver base Recovery of housing market 3 Surplus/(Shortage) Capacity Utilization Truck Capacity Utilization to Increase, Resulting in a Shortage 2012 Source: FTR

4 Intermodal provides scalable capacity 4 You Can Go Here with Intermodal Coast-to-coast intermodal network with global reach 14 million loads moved in 2011 Access to key markets, population centers Connectivity to major U.S. ports Access to a large, growing container fleet Rail and carrier-owned assets Intermodal scales to meet supply chain needs efficiently One train can move the load of 280 trucks

5 Intermodal industry volume has steadily grown Source: Intermodal Association of North America 14.1M3.1M Volume has increased more than four-fold 5

6 Intermodal offers sustainable savings Fuel efficiency and freight density drive cost savings Railroads are three times more fuel efficient than trucks One train can move the load of 280 trucks Higher fuel efficiency means lower greenhouse emissions Intermodal reduces carbon footprint Moving freight by rail, instead of truck, reduces emissions by 75% 6 If 10% of long haul highway freight converted to rail… Annual fuel consumption would decrease by 12 billion gallons, and Annual greenhouse emissions would decrease by 12 million tons Source: AAR

7 Intermodal conversion opportunity is substantial Highway-to-rail conversion still in early stages Over 9 million loads in east have conversion potential Intermodal conversion results in additional capacity and cost savings for shippers Freight length of haul > 550 miles Sources: AAR CS-54 and Global Insights Transearch data 7

8 Far-reaching, dynamic network Hub and spoke design provides unique service capabilities Aggressive capital investment Terminal and infrastructure development, public-private projects Customer and service focus Minimizing variability in service, while meeting customer needs Highway-to-rail H2R strategy Conversion of over-the-road loads Americas first railroad Founded 1827, headquartered in Jacksonville, FL Largest rail network in east 21,000 route miles in 23 states, serving 70 ports Significant resources Over 4,000 locomotives, 80,000 freight cars, 30,000 employees Ranked 226 on Fortune 500 $11.7 billion of revenue in 2011 Shippers achieve the value of intermodal with CSX 8 Company OverviewIntermodal at CSX

9 9 9 9 9 The National Gateway is evolving the rail network Public-private investment of $850 million State, Federal, and CSX funded Support of 300+ public and private organizations and individuals Increases efficiency and reach of U.S. rail network Links Mid-Atlantic ports with Midwestern markets 61 clearance projects and 6 intermodal terminals, including Northwest Ohio Clearance projects are ~50% complete to date

10 Northwest Ohio Hub creates a more efficient network Chicago run-through for Western interchange Bypass high traffic areas resulting in faster transit times Non-stop service to east and west coasts for more reliable service New lanes increase access to major population centers Effective connector, with 99% scheduled connectivity at NWOH Hub and spoke network is a strategic differentiator 10

11 CSX focused on highway-to-rail (H2R) strategy 11 Service Reliability Meeting customer commitments Minimizing variability in the service product Network Design NWOH – Hub & Spoke New England Florida BCO Education Dedicated National Accounts Team H2R Optimizer Channel Strategy IMC Brokers Ocean carriers Truck

12 Highway-to-rail continues to drive industry growth Intermodal offers a transportation alternative with scalable capacity and sustainable savings advantages The value of intermodal rail only beginning to be realized; great potential remains CSX dedicated to understanding transportation needs and developing intermodal solutions 12


14 Appendix 14

15 Public-private investments continue to grow network In 2011, businesses and state and local agencies invested over $1.3B CSX also investing in new terminals and infrastructure throughout network Clearance projects enable double-stack capable network New England National Gateway 15 Terminal Expansions New Terminals CSX Investment in Rail Network (2011) Private-Public Investment Rail –Served Facilities (2011) $ 5M $ 1M $105M $165M $ 90M $ 8M $ 84M $ 70M $ 30M $ 50M $ 1M $ 66M $385M $117M $ 74M $515M $ 71M $ 2M $ 35M $ 70M $ 37M $ 4M $ 46M $ 73M $250M $ 44M $ 1M $ 94M $ 10M $ 2M $ 67M $ 3M $ 10M $ 53M $ 1M *D.C. Investment in the Rail Network

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