NEARS Class I Rail Network Capacity
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1 NEARS Class I Rail Network Capacity 2 October 2014
2 What is Capacity? Capacity is the amount of stuff we can move between Origin and Destination 2
3 We can increase capacity by.. Putting more stuff in each car Putting more cars on each train Putting more trains on each route 3
4 Capacity has to be a balanced approach There are 4 primary components to rail system capacity: Locomotives Equipment (cars) People Network (infrastructure) These are tied together by processes CSXT has adapted a concept of Network Capability. Capability incorporates the idea of capacity at a given service level. 4
5 The CSXT Network CSXT s Network is the network of rail lines and facilities over which CSXT can operate to provide serve to our customers. 5
6 The CSXT Network The Network determines where we go and who we serve. The capabilities and attributes of the components of the Network determine the service we can provide. The Network Consists of very long term, fixed assets Makes each railroad company unique 6
7 The CSXT Network Montreal New England Chicago Mid-Atlantic Memphis Charleston New Orleans Serving 23 states and two-thirds of the U.S. population 7 Miami
8 The CSXT Network is part of the North American rail network CSXT is one of 7 Class I freight railroads that operate in North America 50% of CSXT traffic interchanges with other railroad 6 other Class I s 240 shortlines and regionals Interline capabilities are critical to the total rail service product 8
9 BNSF and The CSXT Network is part of the North American Rail Network NS Cincinnati UP BNSF CN KCS CSXT NS CP 9
10 10 U.S. rail freight route densities
11 The CSXT Network 11
12 Certain Core Routes Create Key Service Corridors The Water Level Route Southeast Corridor Coal I-95 Corridor Core Routes 12
13 Northern Tier is CSXT s route to the Northeast CSXT Northern Tier Geography Selkirk Northern Tier includes: Chicago Terminal Water Level Route River Line St. Louis / Indianapolis Lines B&O Route to Mid-Atlantic Chicago Toledo Newark Critical to CSX s network: Willard Philadelphia Heaviest Train Volumes Avon Indianapolis Cincinnati Cumberland Largest Growth Premium Service E St. Louis St Louis Includes key east-west gateways CSXT Hump Yards NW Ohio Double Track Single Track Chicago and St. Louis 50% of all Interchange Volume 13
14 CSXT s Northern Tier continues to experience growth 2014 March-September Growth Strongest in North Buffalo Albany Boston St Louis Chicago New York Philadelphia Baltimore Northern Tier has seen 17% GTM growth since March Volume Increase (Gross Tons) 20 Million 10 Million 5 Million 14
15 How does CSXT plan capacity and investments? It is all about matching supply to demand Forecast (demand) Capability (supply) Process Ops Plan Resources Capital Investment Where does forecasted demand exceed capability? Capability improvement Options Op Changes Capital Planning 15
16 How do we plan capacity and investments It starts with a forecast: Customer forecasts specific forecasts by location / commodity National freight shifts crude oil, coal Competitor position fuel prices, driver shortages International impacts 16
17 Northern Tier: Cumulative network impact methodology Mohawk +Y Garrett +X River Line +Z Widgets Gadgets Stuff Dohickies 17
18 Service and Capacity combine into the concept of Line Of Road Capability 40 Inflection point 35 Ideal operations curve 30 Trains per day The wider the scatter the greater the operational variability 0 Density 18
19 Service and Capacity combine into the concept of Line Of Road Capability Trains per day Acceptable Service Zone?? 5 0 Density 19
20 Increasing Capacity shifts the curve Trains per day Density 20
21 Terminals requires analogous capacity analyses Selkirk Chicago Toledo Cleveland Newark Willard Philadelphia Columbus Cumberland Avon Indianapolis Cincinnati Classification volumes E St. Louis St Louis Inspection requirements Fueling functions Crew Changes Train staging 21
22 CSXT Historical Line of Road Investments ( 05-14) New NW OH Intermodal terminal New England clearances River Line LOR capy Port of NY clearances New unit train inspection yard Cincinnati National Gateway clearances SE Corridor line of road capacity FL Corridor Shift
23 CSXT Current Focus of Northern Tier Investments Northern Tier terminal and Line of Road capacity River Line & Trenton Line line of road capy Cincinnati National Gateway clearances
24 Questions 24
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