Rail – The Intermodal Connection Drew Glassman, AVP Intermodal Marketing CSX Transportation

1. Rail – The Intermodal Connection Drew Glassman, AVP Intermodal MarketingCSX Transportation

2. Holistic focus on controlling supply chain costs • Near-sourcing of manufacturing sites due to rising costs in Asia • Simplification and rebalancing of supply chain network design • Optimization software to improve efficiencies and streamline processes • Use of alternate transportation modes, including intermodal

3. Truck capacity is imminent concern for future Truck Capacity Utilization to Increase, Resulting in a Shortage • Driver shortages are a threat with economic recovery • U.S. Bureau of Labor Statistics reports driver supply is 185,000 below 2007 levels • Turnover for Q1 2012 was 90%, the highest since 2008 • Driver supply impacted by many macro-factors • CSA, HOS and other proposed regulations • Aging driver base • Recovery of housing market 2012 Surplus/(Shortage) Capacity Utilization Source: FTR

4. Intermodal provides scalable capacity • Coast-to-coast intermodal network with global reach • 14 million loads moved in 2011 • Access to key markets, population centers • Connectivity to major U.S. ports • Access to a large, growing container fleet • Rail and carrier-owned assets • Intermodal scales to meet supply chain needs efficiently • One train can move the load of 280 trucks You Can Go Here with Intermodal

5. 14.1M 3.1M Intermodal industry volume has steadily grown Volume has increased more than four-fold Source: Intermodal Association of North America

6. Intermodal offers sustainable savings • Fuel efficiency and freight density drive cost savings • Railroads are three times more fuel efficient than trucks • One train can move the load of 280 trucks • Higher fuel efficiency means lower greenhouse emissions • Intermodal reduces carbon footprint • Moving freight by rail, instead of truck, reduces emissions by 75% If 10% of long haul highway freight converted to rail… Annual fuel consumption would decrease by 12 billion gallons, and Annual greenhouse emissions would decrease by 12 million tons Source: AAR

7. Intermodal conversion opportunity is substantial • Highway-to-rail conversion still in early stages • Over 9 million loads in east have conversion potential • Intermodal conversion results in additional capacity and cost savings for shippers Freight length of haul > 550 miles Sources: AAR CS-54 and Global Insight’s Transearch data

8. Company Overview Intermodal at CSX Shippers achieve the value of intermodal with CSX • America’s first railroad • Founded 1827, headquartered in Jacksonville, FL • Largest rail network in east • 21,000 route miles in 23 states, serving 70 ports • Significant resources • Over 4,000 locomotives, 80,000 freight cars, 30,000 employees • Ranked 226 on Fortune 500 • $11.7 billion of revenue in 2011 • Far-reaching, dynamic network • Hub and spoke design provides unique service capabilities • Aggressive capital investment • Terminal and infrastructure development, public-private projects • Customer and service focus • Minimizing variability in service, while meeting customer needs • Highway-to-rail “H2R” strategy • Conversion of over-the-road loads

9. The National Gateway is evolving the rail network • Public-private investment of $850 million • State, Federal, and CSX funded • Support of 300+ public and private organizations and individuals • Increases efficiency and reach of U.S. rail network • Links Mid-Atlantic ports with Midwestern markets • 61 clearance projects and 6 intermodal terminals, including Northwest Ohio • Clearance projects are ~50% complete to date 9 9

10. Northwest Ohio Hub creates a more efficient network Chicago run-through for Western interchange Hub and spoke network is a strategic differentiator

11. CSX focused on highway-to-rail (H2R) strategy • Network Design • NWOH – Hub & Spoke • New England • Florida • Service Reliability • Meeting customer commitments • Minimizing variability in the service product • Channel Strategy • IMC • Brokers • Ocean carriers • Truck • BCO Education • Dedicated National Accounts Team • H2R Optimizer

12. Highway-to-rail continues to drive industry growth • Intermodal offers a transportation alternative with scalable capacity and sustainable savings advantages • The value of intermodal rail only beginning to be realized; great potential remains • CSX dedicated to understanding transportation needs and developing intermodal solutions

14. Appendix

15. Public-private investments continue to grow network Investment in the Rail Network • In 2011, businesses and state and local agencies invested over $1.3B • CSX also investing in new terminals and infrastructure throughout network • Clearance projects enable double-stack capable network • New England • National Gateway $ 53M $ 10M $ 67M $ 5M $ 1M $105M $ 2M $90M $ 94M $ 35M $ 44M $ 70M $250M $ 50M $ 46M $ 66M $ 37M $117M $ 74M $ 71M $ 84M $515M $ 10M $165M $ 3M $ 1M $ 2M $ 2M $ 1M $ 1M $ 30M $ 73M $ 4M $385M $ 70M $ 8M $ 44M $ 70M *D.C. Terminal Expansions New Terminals CSX Investment in Rail Network (2011) Private-Public Investment Rail –Served Facilities (2011)