PORT OF NEW YORK & NEW JERSEY RAIL FACILITY EXPANSION PROGRAM

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

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

Port of New York & New Jersey On-Dock Rail Volume is Growing 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 275000 250000 225000 200000 175000 150000 125000 100000 75000 50000 25000 0

Port of New York & New Jersey Projected Rail Growth 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 1990 2000 2010 2020 2030 Rail Volume (LIFTS)

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

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

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

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

ExpressRail Elizabeth Old Corbin Street Grade Crossing

ExpressRail Elizabeth New McLester Street Grade Crossing Separation

ExpressRail Elizabeth New Terminal Opened October, 2004

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

New Jersey Marine Terminals Intermodal Rail Program ExpressRail Newark Expansion 2006-08 Corbin St. Support Yard Expansion ExpressRail Elizabeth Expansion Portside Yard merged with Corbin St Yard

Howland Hook Marine Terminal Intermodal Rail Project Rebuild Arlington Support Yard Construct ExpressRail Staten Island 2004-06 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

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

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.

Port Inland Distribution Network (PIDN)

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