How Tomorrow Moves: Ohio Conference on Freight 2011 Atlantic Connections to the Midwest

Transcription

1 How Tomorrow Moves: Ohio Conference on Freight 2011 Atlantic Connections to the Midwest 1

2 Agenda CSX Review Market Overview National Gateway & NW Ohio Intermodal Hub Bridging Global Commerce 2

3 2011 first half YOY results were strong despite economy Overall International Domestic Vol ol Vol +9.4% +18.9% +1.8% Market Environment Strong international Domestic gaining momentum Truckload capacity fairly tight due to CSA Source: CSX Actuals, 2010 & 2011

4 CSXT 2011 Capital Investment CSX continues to increase investment in the railroad 2011 Summary Supports improvements for coal, intermodal and system maintenance Regulatory supports implementation of positive train control (federal mandate) Intermodal investments are in strategic category and include terminals and terminal maintenance (track and paving) 4

5 Intermodal industry volume has grown exponentially U.S. Intermodal Volume Units in Millions Volume has increased four-fold 11.3M 3.1M Source: Association of American Railroads

6 and now Intermodal is a transportation must have Increasing cost of transportation Fuel prices Driver restrictions (CSA 2010, hours of service) Companies are looking for green supply chain solutions Corporate environmental stewardship Public policy resonance New supply chains require new ways of transport Effects of global recession Panama Canal expansion Recent import/export shifts 6

7 Rail has to reach the multiple markets Midwest & Ohio Valley are key population centers Atlantic Ports are preparing for increased traffic flows US Dollar has increased exports 7

8 East Coast ports look to improve infrastructure Port Project Description Cost ($M) New York/New Jersey Virginia Greenville Yard Intermodal Terminal Corbin St. Yard $ acre container terminal Rail corridor linking railways, raising tunnel and bridge clearances $701.0 Wilmington, NC Container terminal expansion $143.0 Charleston Harbor deepening (completed) New container stacking equipment, cranes and other enhancements 280 acre container terminal $857.0 Savannah New berths, cranes and additional container capacity $100.0 Jasper County Bi-state authority 1,800 acre container terminal $500.0 Jacksonville Capital improvements over the last decade (container and bulk facilities) Two new container terminals (MOL & Hanjin) $800.0 Tampa Port Everglades Miami Source: American Shipper May 2008 Expanded and dedicated container facility Short-term port-wide capital improvements Phase 1 new container terminal and distribution warehouse center Phase 2 container terminal Harbor deepening for phase 2 container terminal Capital improvements Infrastructure improvements designed for post-panamax vessels $1,663.7 $572.4 $254.5 $6,

9 Future Demands Require Significant Investment Investment required by 2035 Freight Rail Passenger Rail Highways $ 5 Trillion $ 135 Billion $ 198 Billion Source: Rail 2007 AAR/Cambridge Study; Highway 2007 DOT Surface Transportation Study

10 CSX is well positioned in the international market INTERNATIONAL MARKET 1.1 International Market Volume in Millions OL Strategy Looking Forward Establish on-dock Intermodal service at all ports Enhance existing and develop new services via NW Ohio Expand markets 10

11 PANYNJ is improving its infrastructure $110 M on-dock ICTF Completion in 2014 Global Marine Terminal Bayonne Bridge $1.5 B to raise deck Completion in 2015

12 NJ Liberty Corridor Projects Bergen Tunnel Undercut track Raise tunnel height

13 NJ Liberty Corridor Projects Waldo Tunnel Benefit 10,000 FT trains Double-Stack (H/H) Daylight tunnel Completed September 2009

14 National Gateway: Meeting the Challenges NW Ohio Chicago Pittsburgh (planned) Boston Chambersburg 61 clearance projects and 6 new and enhanced terminals, utilizing the latest technology, in 6 states and DC St. Louis Memphis Columbus (planned) Baltimore (planned) Charlotte (planned expansion) New York Baltimore Hampton Roads Wilmington Connects Mid-Atlantic Ports to markets in the Midwest and Southeast, opening new demand centers New Orleans Florida 14

15 The National Gateway: A True-Public Private Partnership Federal $ 98 Million States $184 Million CSX $595 Million Federal State CSX $1 of public funds invested = $35 in public benefits 15

16 NW Ohio uses technology that makes a difference

17 Prior to NW Ohio routes were circuitous 4 days 1 connection Detroit Cleveland 2 days Chicago 4 days 2 connections Columbus 3 days 1 connection Port Of Baltimore Cincinnati 5 days 2 connection Connection Connection & Destination 17

18 NW Ohio service design is faster and more reliable 3 days 1 connection Cleveland 2 days 1 connection Detroit 3 days 1 connection Chicago NW Ohio Port Of Baltimore Cincinnati 3 days 1 connection Columbus 2 days 1 connection 18

19 National Gateway & NW Ohio unlock potential markets City Baltimore Estimated Start Chicago Detroit E. St. Louis Kansas City Jacksonville Miami Existing Toledo Cleveland Columbus 2011 Cincinnati Louisville Indianapolis Buffalo Atlanta Charlotte Memphis Pittsburgh

20 The future BWI Terminal will use new technology Howard Street Tunnel Baltimore Future BWI Rail Terminal Hanover Rd Site Montevideo Rd Site Jessup Correctional Facility Site BARC / Beltsville Washington, D.C. 20

21 National Gateway adds benefits for the Port of Virginia Se rv ice Cincinnati C le vel an d Columbus Chicago Detroit E. St. Louis Ev ansville Kansas City Marysv ille To le do (N W Ohi o lo ca l) Imp rove d R ou te (- 18 hrs ) On-Dock Rail (APMT) Estimated Start Exis ting Louisville India n ap ol is On-Dock Rail (NIT) Atlanta Charlotte Nashville Memphis Pittsburgh

22 West Coast-Ohio Valley: Speed a reality Conceptual Plan: Days 1 Connection Detroit Cleveland LA /LB Chicago 4.5 days NW Ohio 5-6 Days 1 Connection West Coast Realities: 2011 BNSF and UP have implemented services connecting with NW Ohio Sunday vessels make Friday deliveries via CSX to Ohio Valley destinations 6 Days per week frequency on BNSF via QLACCXO Cincinnati 5-6 Days 1 Connection Columbus 5-6 Days 1 Connection 22

23 Planned terminal investments are ongoing Detroit 2011 NW Ohio 2011 Cleveland 2011 Pittsburgh 2015 Columbus 2011/12/13 Louisville 2011 Charlotte 2011 Fairburn 2011 Montreal 2014 Worcester 2013 Expansion of constrained terminals Key market expansions like Louisville, Montreal, and Pittsburgh Central Alabama 2012 New Terminals Winter Haven 2014 Terminal Expansions Charleston 2011 Evaluation underway for a NWOH like Hub in the Southeast 23

24 Network capability will increase PNW Quebec Midwest Northern California Northeast Southern California Atlanta Research Triangle CSX opportunities Interline flows CSX Hub Terminal Mexico Gulf Coast Florida 24

25 Thank You! 25