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

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

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

4. 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. 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. 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. 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. 8 2005 Container Imports (TEU) 7 M Europe TrafficChina TrafficOther Asia Traffic S. America Traffic China: 12 M Other Asia: 5 M Europe: 3M Central / South America: 2 M Rest of World: 1M

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

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

11. 11 Increasing Port Volumes Drive Rail Volumes Today2020 Source: TranSystems and USDOT Federal Railroad Administration Office of Policy

12. 12 Highway Congestion Worsens Source: USDOT FHWA Freight Analysis Framework Today2020

13. 13 Coal I-95 Corridor Waterlevel Route Southeast 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. 14 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 Buffalo Syracuse Cleveland Columbus Cincinnati 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

15. 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. 16 CSX Capital Investment $7.2 Billion Since 2000

17. 17 2004 Traffic Levels 2008 Forecast Traffic Levels Feb 2005 Problem Statement: Current network constraints will increase without new capacity investments

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

20. 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. 21 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 – Florida Central Florida Commuter Rail

22. 22 In May 2007, CSX submitted its Southeast I-95 Corridor as a candidate for the Corridor of the Future CSXs 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