Executive Speaker Series Luncheon

Transcription

1 Executive Speaker Series Luncheon June 19, 2012 LATC Mission Statement "Holding true to our traditional values, we will provide transportation professionals, shippers and suppliers a forum to foster relationships, share ideas and solutions while raising funds to support our membership and communities."

2 Friends of the LATC

3 LATC Membership LATC Membership Benefits: Networking Opportunities to industry personnel Discounted rate to Executive Speaker Series Luncheons LATC Transporter Newsletter - Insightful news and articles Annual Membership Directory - Effective resource Discount on subscription of the Journal of Commerce Membership Dues help fund philanthropic efforts, which include local charities, scholarships and endowments

4 New Members for the LATC Mr. Jeffery Potter, Daum Commercial Real Estate Services

5 Executive Speaker Series

6 David Parker Chairman/CEO/President Covenant Transport Thursday, July 12, 2012 Monterey Hill Banquet Center Monterey Park

7 Events

8 Tickets are now Available!! Transportation Night Knott s Berry Farm September 21 st 7:00 pm to 1:00 am

9 89 th Annual Los Angeles Transportation Club Installation Gala Hyatt Regency, Long Beach Friday, November 2, :30 pm 2011 Expense ($4,000) Current ($0)

10 Please visit the LATC at: Goal $6,500 Current $5,710

11 Friends of the LATC

12 The Richard Hollingsworth Professional Development Scholarship

13 Bill Clements Vice President, Intermodal CSX Transportation

14 Embracing Growth in Intermodal Los Angeles Transportation Club, June 19, 2012 Bill Clement, VP-Intermodal, CSX

15 Intermodal industry volume has steadily grown... U.S. Intermodal Volume Units in Millions Volume has increased more than four-fold 14.1M 3.1M Source: Intermodal Association of North America 15 15

16 and the intermodal renaissance Freight Market Value by Mode 67% 57% will continue Intermodal expected to outpace all other modes in growth Over-the-road alternative is increasingly challenged 11% 21% Declining truckload productivity due to highway congestion Shrinking driver pool due to demographics and regulation Truck Intermodal Source: 2009 Facts & Figures, USDOT/FHWA Greening of the supply chain and exposure to spikes in diesel prices Intermodal service potential is increasing thanks to investments 16

17 IDP and GDP projections point to continued growth US Industrial Production US Gross Domestic Product Source: Global Insight March

18 The truckload conversion opportunity is substantial Addressable Eastern Freight Market 14 Million Units 2.9 CSX NS Opportunity Market Strategy Broad market reach to convert highway-to-rail Market through intermediate channel partners Stimulate demand directly with Beneficial Cargo Owners Enhance service reliability and customer satisfaction Freight volume for lengths of haul over 550 miles Network investments improve reliability and flexibility of service offerings Sources: AAR CS-54 and Global Insight s Transearch data 18 18

19 Intermodal revenue increased 19% Revenue Volume First Quarter Year-Over-Year Change RPU 9% 10% in Q1 19% Revenue $389M First Quarter Volume 600K Record domestic volume on continued truck conversions RPU $648 Strong international growth driven by onboarding new Maersk traffic RPU higher on positive mix, improved pricing and fuel recovery 49% 51% Intermodal Sectors Domestic International Ongoing Drivers Strategic investments enhance growth and network operations Growth driven by truck conversions and expanded service offerings First Quarter Volume 19

20 CSX is well positioned in the international market International Volume Year-Over-Year Growth Looking Forward Grow organically with existing customer base Support customer growth with network infrastructure and port efforts (e.g. National Gateway) Open new markets, such as Louisville, to drive growth 20 20

21 CSX international market to grow with global trade U.S. Containerized Tonnage TEUs in Millions CSX s portfolio of international customers will grow with imports and exports in the U.S. Customer focus, service reliability and network enhancements will further generate new opportunities Source: TTX, Piers/JOC, TranSystems CSX well positioned for Panama Canal

22 The domestic market has grown steadily Domestic Volume Year-Over-Year Growth Q1 Looking Forward Stimulate growth through highway to rail conversions Customer focus and service reliability drive unique value Open new North American markets, including Mexico Growing container capacity 22 22

23 The CSX/UP solution is delivering as promised UMAX program provides access to key markets Extensive network with over 600 service lanes Ramp-to-Ramp and Door-to-Door products1 Mexico service available via Passport Multiple Terminal Markets New England (BOS, SPR, WOR), Ohio (CIN, CLV, COL) N. California (LATHROP, OAK), S. California (COI, LATC, LA) Ongoing product development Entering to new markets Expand presence at Mexican gateways Single Terminal Markets Gateways: CHI, ESL, MEM and NOLA 23

24 Our CSX/BNSF solution is delivering strong growth Increasing capacity will continue to support growth Over 30, foot dedicated containers Expansion into new markets Door-to-Door product offers transcon service in both directions Committed pricing Expansion to other markets 24

25 Listening to customers is sharpening our focus Satisfaction Drivers Planning Service Customer Assistance Voice of the Customer Show up when you told us you would If you can t, tell us in advance Improve our customer service experience CSX is an extension of our company 25

26 Relentlessly focused on highway-torail conversion Channel Strategy International D2D Private Asset Rail Asset BCO Education Dedicated National Accounts Team H2R Optimizer Network Design NWOH Hub & Spoke New England Louisville Florida Service Reliability Creating Truck- Competitive Service Consistency over Speed 26 26

27 Continued capital investments support growth Montreal Worcester expansion provides sizeable growth capacity Columbus Detroit Pittsburgh Worcester New and expanded terminals in key markets Charlotte Double-stack clearances in key corridors to capitalize on efficiency of rail Winter Haven Investment in domestic containers to support continued H2R conversions New Terminals Expansions 27

28 NW Ohio: successful opening, delivering on service West Coast through-trains bypass Chicago, saving one day of transcontinental transit 1,500-2,000 Lifts per Day Units Gated per Day Congestion reduced in Chicago, Cleveland, and Syracuse Over 50 new service lanes generating 50K+ loads in per day Trains Processed 30 minutes Avg. Dray Dwell On-time availability improved by greater than 10% in several highvolume lanes 28

29 How tomorrow is taking shape for intermodal... Customer Focus Expanding service offerings to meet needs of current and future customers Service Reliability Creating truck-competitive service to profitably convert over-the-road freight Network Capabilities Making infrastructure improvements to support customer growth and network reach 29 29

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