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CMC Update April 2009

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CMC Update April 2009 How Tomorrow Moves: National Gateway Project Sharon Daboin - Resident VP, State Government & Community Affairs June 20, 2012 1 The economic impact of America’s freight railroads America’s freight rail industry: — Generates $265 billion in total annual economic activity — Moves one-third of American exports — Employs more than 175,000 workers in well- paying jobs . Each job supports an additional 4.5 jobs across the country — Sustains 1.2 million jobs in fields such as manufacturing and retail — Invests 18% of their revenue right back into the national rail network . Every $1 of investment in rail infrastructure generates another $3 in economic activity . Each $1 billion of investment in rail infrastructure to expand capacity creates an estimated 20,000 jobs nationwide Source: Association of American Railroads 2 CSX connects the nation and the globe CSX today: Buffalo Boston 30,000 employees Chicago 21,000 route miles Pittsburgh New York 1,200+ trains/day Baltimore 5 million+ carloads annually St Louis 3,500+ locomotives 80,000+ freight cars Memphis Serves 70 ocean, lake and river ports Birmingham Atlanta Charleston Jacksonville New Orleans Tampa 3 CSX in DE, MD & VA CSX employs more than 3,000 residents and reported approximately $215 million in compensation and benefits in 2011 (current and former employees). CSX operates 3,500 miles of railroad. In 2011, CSX invested nearly $124.5 million in its network. Major Yards/Facilities: — 7 Major Rail Yards (3 in MD and 4 in VA) — 2 Intermodal Terminals (MD and VA) — 3 Automotive Distribution Terminals (1 in DE, 2 in MD) — 6 TRANSFLO Terminals (1 in DE, 2 in MD, 4 in VA) 4 Rail Helps Meet Transportation Challenges • Transportation demand is rising and congestion is getting worse, with no end in sight Today 2020 CSX Territory Source: USDOT FHWA Freight Analysis Framework 5 Global trade shifts – Panama Canal Expansion Baltimore Suez Panama Canal Canal 6 Shipping Options Maritime experts estimate 25% of cargo currently calling west coast may shift south and east 7 Growth requires innovative solutions to move goods More people consuming Many of those things They have to move across more things… come through ports… land to get to consumers Intermodal freight transport — Combined efficiency of freight rail and flexibility of highway transportation — More freight per train . increases efficiency . reduces rail and highway congestion . lessens emissions and saves fuel A single intermodal train can carry the equivalent of over 280 trucks Trains can move a ton of freight nearly 500 miles on a single gallon of fuel. 8 The National Gateway Connects East Coast Ports to the Midwest Boston NW Ohio $850 million in investments with Chambersburg New York Chicago more than $10B worth of public Baltimore benefits Pittsburgh St. Louis Hampton Roads Involves 61 clearance projects and Strategic investments Charlotte 6 intermodal terminals Memphis Wilmington State, Federal (TIGER), and CSX funding Supported by six Governors, DC, and broad coalition of business, New Orleans Tampa environmental and other groups 9 National Gateway Boston Northwest Ohio NW Ohio Chicago Chambersburg New York Baltimore St. Louis Hampton Roads Double-stack Charlotte Clearances Memphis Wilmington Intermodal Facilities New Orleans Tampa Truck/Train Transfers The Benefits of Double-Stack Double-stacked trains place two freight containers on top of one another, helping to improve efficiency and reduce environmental impact – shipping twice the freight on the same number of trains. To accommodate double-stacked trains, construction work varies from minor modifications to complete reconstruction of bridges, tunnels and other infrastructure. Liner Notching • Tunnel liner is removed at corners to achieve desired clearance. Total Liner Removal • Liner is replaced with Steel Sets or shotcreted. Open Cut Method • Removal of overburden and open-cutting of tunnel Phase 2 Clearance Projects 21 Projects East and South of Chambersburg, Pennsylvania – Significant Projects . Harpers Ferry Tunnel, Sandy Hook, MD . East Deer Park Dr, Washington Grove, MD . Virginia Avenue Tunnel, Washington, DC . Washington DC Track Lowerings Virginia Avenue Tunnel A single track, low clearance tunnel in Southeast Washington DC 9 blocks long 108+ years old A major bottleneck to east coast rail operations Replace with new, double track and “double stack” tunnel Environmental Impact Statement underway 16 Existing CSX Network To Philadelphia Howard St Tunnel Old Main Line Seagirt / Dundalk Main Line CSXT To Washington D.C. AMTK New and Enhanced Terminals Chambersburg, PA NW Ohio Intermodal Yard Baltimore/Washington, DC Pittsburgh, PA Columbus, OH Charlotte, NC 18 National Gateway opens up new markets to Maryland Looking for new Picture Port of Baltimore Service Lanes City Estimated Start Chicago (59th St) Cincinnati Boston Cleveland NW Ohio Columbus Chambersburg New York Chicago Detroit Existing E. St. Louis Baltimore Jacksonville St. Louis Kansas City Hampton Roads Louisville Charlotte Miami Memphis Wilmington Buffalo 2013 Indianapolis Atlanta Charlotte 2015 Memphis New Orleans (depending on market demand) Pittsburgh Tampa 19 National Gateway - Benefits Stimulates the economy • Creates 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 $3.4 billion in shipper and logistics cost savings. Reduces highway maintenance costs, congestion and improves safety • The National Gateway enables modal conversion of nearly 18 million truck trips and reduces truck miles traveled by more than 14.3 billion miles, saving nearly $700 million in highway maintenance costs and more than $600 million in safety savings. Lessens greenhouse gas emissions and helps improve air quality • The National Gateway will improve the flow of freight by rail, reducing fuel consumption by 1 billion gallons. This improved fuel efficiency saves over 12 million tons of greenhouse gases. 20 21 22 .
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