PORT OF NEW YORK & NEW JERSEY RAIL FACILITY EXPANSION PROGRAM

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1 PORT OF NEW YORK & NEW JERSEY RAIL FACILITY EXPANSION PROGRAM Transportation Research Forum March 8, 2005

2 Port of New York & New Jersey Intermodal Rail Linkages CSX Primary NS Primary NS Secondary NS & CSX Shared Little Ferry CSX to Albany River Line New Jersey Newark CSX Lehigh Line NS ExpressRail Port Newark ExpressRail Elizabeth ExpressRail Staten Island Chemical Coast Line NS to Harrisburg Port Reading Secondary Line

3 Port of New York & New Jersey On-Dock Rail Volume is Growing

4 Port of New York & New Jersey Projected Rail Growth 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , , Rail Volume (LIFTS)

5 Port of New York & New Jersey Reasons for Projected Rail Growth Port Throughput is Growing Global economy Increased demand for imports and exports Rail participates in port growth Increasing demand for rail transport Higher trucking costs More short-haul rail

6 Port of New York & New Jersey Advantages of Rail Transportation More port volume lowers cost per unit More port-related jobs Enhanced port competitive position Improved fuel efficiency vs. trucking (2 to 4 times more efficient) Environmental benefits (about 1/3 NOx of trucks) Alleviates traffic congestion (one train = 500 trucks) Safety, including hazardous materials transport

7 Port of New York & New Jersey Intermodal Rail Program Dedicated Rail Terminals including: ExpressRail (APM & Maher - Elizabeth) PNCT Rail Terminal (Port Newark) Port Ivory (Howland Hook) Intermodal Support Yards including: Corbin Street Yard (Newark/Elizabeth) Arlington Yard (Staten Island) Regional Rail Capacity Enhancements

8 Port of New York & New Jersey ExpressRail Intermodal System Corbin Street Support Yard ExpressRail - Port Newark ExpressRail - Elizabeth Chemical Coast Line ExpressRail Flyover Chemical Coast Connector ExpressRail - Staten Island Arlington Support Yard Staten Island Railroad

9 ExpressRail Elizabeth Old Corbin Street Grade Crossing

10 ExpressRail Elizabeth New McLester Street Grade Crossing Separation

11 ExpressRail Elizabeth New Terminal Opened October, 2004

12 New Jersey Marine Terminals Intermodal Rail Projects ExpressRail Port Newark in Design Newark Interim Terminal in Operation Old ExpressRail Removed 2005 Corbin St. Support Yard in Design Portside Support Yard In Service ExpressRail Elizabeth Phase I in Operation ExpressRail Flyover Track 2 in Design ExpressRail Flyover Track 1 in Service

13 New Jersey Marine Terminals Intermodal Rail Program ExpressRail Newark Expansion Corbin St. Support Yard Expansion ExpressRail Elizabeth Expansion Portside Yard merged with Corbin St Yard

14 Howland Hook Marine Terminal Intermodal Rail Project Rebuild Arlington Support Yard Construct ExpressRail Staten Island Rehab SIRR Main Line Conrail/NS/CSX Chemical Coast Line New York Container Terminal Relocate Bayway Avenue AK Lift Bridge Goethals Bridge Construct Chemical Coast Connector

15 New York Regional Rail Freight Program (Port Authority NYSDOT) Hastings & Riverdale Clearances & Power Harlem River Yard Upgrades Oak Point Yard Upgrades Bushwick Branch & Fresh Pond Yard Rehabilitation Hellgate Bridge Fremont Branch Phase I Rehabilitation Bay Ridge Branch Phase I Rehabilitation

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20 North Jersey Regional Rail Freight Program (Phase I: Port Authority NJDOT Railroads) Lehigh Line Valley - Pike P&H Branch Raff Property Lehigh Line Bound Brook - Potter Chemical Coast Line Pike E Port.

21 Port Inland Distribution Network (PIDN)

22 PIDN Albany Business Relationships Contract: $25/box service payment; $5/box repayment after breakeven; $200,000 marketing assistance. Cooperation Agreement New York State Dept. of Transportation Federal Funds: Economic Development = Capital; CMAQ = operating (80% reimbursement of net deficit) Stevedoring at or Near Cost Sole Source MOU Federal Marine Terminals TRAC Lease Columbia Coastal Transport Contract (Bid) NY/NJ Terminal Operators Stevedoring at or Near Cost Tug Company Ocean Carriers Shippers