1. 1 1 1 Partnering with the Freight Railroads – Passenger Service SCORT – 2009 National Meeting September 21, 2009 Partnering with the Freight Railroads – Passenger Service SCORT – 2009 National Meeting September 21, 2009

2. CSX operates over 21,000 route miles within 23 Eastern states, the District of Columbia and two Canadian Provinces.  1,200+ trains/day (200+ passenger)  7.4 million carloads per year  3,800+ locomotives  101,000+ freight cars  Serves 70 ocean, lake and river ports  30,000 employees... Gulfport Pascagoula Mobile. Port Manatee..... Brunswick Savannah Charleston Wilmington Newport News

3. Our belief is that rail provides sustainable transportation solutions. Rail is the safest and most secure mode of surface transportation One intermodal train can carry the load of 280 trucks A locomotive can haul a ton of freight 436 miles on one gallon of fuel Rail capital investment relies principally on private funds Safe and Secure Green Efficient Sustainable

4. Clearly, there is a pressing need to pursue alternative transportation modes. Today2020 CSX Territory Source: USDOT FHWA Freight Analysis Framework

5. Can railroads handle more freight while also carrying more passenger traffic? ESSENTIAL DECISIONS  Choosing the right location  Careful planning  Sufficient strategic investment

6. Freight service and conventional passenger operations up to 79 MPH may commingle provided four principles are addressed  SAFETY – Safety cannot be compromised  CAPACITY –Capacity must ensure safe and reliable operations and ensure access and room for current and future freight customers  COMPENSATION –Compensation must offset all expenses of the additional passenger service  LIABILITY –Indemnified against any new liability that, but for the new passenger service, would not exist

7. Emerging/Higher Speed Passenger Rail operating at speeds between 80 and 90 MPH must be examined on a case by case basis  Must meet the safety, capacity, compensation and liability requirements of conventional passenger rail operations  Factors governing the commingling of freight and passenger rail above 79 MPH: –Operating characteristics, volumes and frequencies of both the freight and existing conventional passenger traffic –Right-of-way availability –Highway-rail grade crossings and other physical obstacles –Number of towns and cities traversed –Topography of the corridor –Publicly funded track and signal improvements –Public funding of ongoing maintenance and operations –Possibility of temporal separation

8. Regional/Express High Speed Passenger Rail operating above 90 MPH must do so on dedicated tracks separated from freight operations  Sealed from highways and pedestrians –HSR requires grade separated roadways –Pedestrian overpasses, tunnels and barriers must prevent access to tracks  Dispatched and maintained by the passenger entity –Separate operation insures no compromises for heavier, slower freight –CSX operating rules/signal & engineering standards do not contemplate HSR –CSX core business is moving high tonnage trains at conventional speeds  If the right-of-way is shared, the freight operator must be able to access both its present and future customers to meet its common carrier obligation. –Freight carriers must not be isolated on one side of the right-of-way

9. SAFETY: There can be no compromise  Any operation – passenger or freight – on CSX tracks or property must be safe.  No new risks to the public, passengers or CSX employees  Consistent with CSX safety objectives and programs  Dedicated HSR passenger corridors need adequate distance from existing freight rail tracks to allow employee work without removing the adjacent tracks from service. –A train traveling at high speeds picks up debris, spraying anyone within the envelope of the vacuum –Switching rail cars and track, bridge, signal, communication or any other type of work on adjacent track must be considered –Sufficient separation between tracks decreases the chance that work on one will disrupt service on an adjacent track

10. CAPACITY: Passenger projects that diminish existing and future freight capacity are inconsistent with the true objectives of planners  A cost-effective, reliable freight rail system is vital to state economies  Absent additional capacity, new passenger trains diminish freight capacity: –More trucks on the highway –Congestion on vehicular arteries increases –Pollution increases  Passenger agencies that consume the existing, “cheap” capacity for passenger trains must: –Replace the capacity consumed, previously available for future freight demands –Add capacity required to maintain fluidity as the freight volume returns Passenger operations must be transparent to freight operations Detailed modeling required

11. COMPENSATION: Freight railroads are not public utilities and must be compensated for right-of-way and capacity consumed by passengers.  Freight railroads are publicly held companies, operating on private property maintained by private investment  Infrastructure built solely for passenger trains is of little or no benefit to the host railroad.  Therefore, passenger authorities accessing freight tracks must: –Pay for the feasibility studies and freight carrier resources to review the proposals –Bear the full cost of any new facilities required to accommodate the passenger service –Cover ongoing maintenance for the facilities not needed but for the passenger service –Compensate host carrier for the use/acquisition of rights-of-way at fair market value

12. LIABILITY: Freight railroads cannot assume additional liability for passenger operations on freight tracks or freight rights-of-way  Despite CSX’s record as one of the nation’s safest railroads, accidents can and do happen  The establishment of passenger service which brings, new, more or faster trains creates a vastly increased level of risk which is not matched by any monetary benefit to the host railroad.  A recent GAO analysis regarding the handling of liability where freight trains and commuter trains operate on the same tracks found that: –Absent an agreement on liability, passenger operations expose freight railroads to an especially dangerous and unfair risk.  Host freight railroads must be fully protected against any and all liability resulting from the added presence of high speed passenger service

13. Ten major corridors have been identified by the federal government for possible high-speed rail funding From FRA Website (http://www.fra.dot.gov/us/content/31)

14. The proven partnerships established around the I-95 Corridor in Virginia set the standard for the nation Note: Green Line Width = Relative Number of Amtrak Passenger Routes Bristol Clifton Forge Manassas Lynchburg Charlottesville Newport News Williamsburg Petersburg Richmond Staples Mill Road Richmond Main Street Ashland Fredericksburg Quantico Lorton & Woodbridge Springfield Alexandria Washington, D.C. Union Station Existing Amtrak Routes (2007) Existing VRE Service Area (2007) Amtrak Stations Source: Virginia Department of Rail and Public Transportation

15. North Carolina and Virginia entered into an interstate compact to further insure the success of the Southeast High Speed Corridor  North Carolina’s applications support the state’s passenger rail vision –Acquire CSX’s S-Line running from Petersburg, VA to Raleigh, NC, much of which is abandoned, for 110 MPH service –Develop the Southeast High Speed Rail Corridor between Richmond and Raleigh including 168 miles of track construction, plus grade separations, signal work, and passenger stations. –Upgrade the existing Amtrak service on CSX’s A-Line between Richmond and Savannah From the SEHSR website (http://www.sehsr.org/) Southeast High Speed Rail Corridor Washington, DC – Charlotte, NC

16. Thanks for your attention and for your interest. Please don’t hesitate to call on me with any questions.