======== To: CSXExpress@csx.com Subject: CSX Files Operating Plan For Integrating Conrail Lines From: CSX Express Date: Mon, 23 Jun 97 18:14:34 +0000 -------- Contact: Thomas E. Hoppin (804) 782-1450 FOR IMMEDIATE RELEASE CSX Files Operating Plan For Integrating Conrail Lines Plan Will Dramatically Improve Rail Service in Northeast Rail Carriers Will Compete More Effectively With Trucks for Freight Movements CSX Plans Nearly $500 Million in Capital Investments Throughout Its System WASHINGTON - June 23, 1997 - CSX Corporation today filed its operating plan for integrating the rail lines of Conrail into its system. Company officials said the plan will bring effective rail-truck competition to the Northeast and vastly expand direct, single-line rail service throughout the eastern half of the United States. The plan, part of a joint application with Norfolk Southern Corp. that CSX filed today with the federal Surface Transportation Board, gives shippers more options for freight movements to and from major markets in the East. It includes $488 million in capital improvements to track connections and facilities at key locations throughout the CSX system and details service enhancements and more than $500 million of public benefits that will result from CSX's expanded route network. The operating plan also details $410 million in net revenue gains and cost savings that are expected to result from consolidation of the Conrail network into CSX. Of that total, $264 million is from cost savings and $146 million is from net revenue gains. These projections represent increases from earlier estimates of $165 million and $75 million, respectively. The higher projections are due to more detailed analysis of Conrail operations and the expected synergies and growth opportunities that the consolidated CSX and Conrail operations will produce. "CSX will reach every major market east of the Mississippi River with single-line service and create vast new opportunities for more efficient and reliable rail freight movements," said John W. Snow, chairman, president and chief executive officer of CSX Corp. "I am extremely confident in the operating plan developed by CSX Transportation's strong, experienced management and planning team. The public benefits of this plan will be felt by all. There will be more competition, better service and greater opportunities for growth and jobs." The CSX operating plan designates 12 service routes that will link major geographic regions and traffic gateways throughout its 23,000 route-mile system with fast and efficient single-line service. The service routes and connections are designed to facilitate flows of key commodities, such as coal, steel, autos, grain, wood, paper products, chemicals, minerals, general merchandise and intermodal traffic. The more efficient route network will reduce delays, switching and interchange of freight rail cars between different railroads and speed service to customers. Transit time reductions of one to two days will be achievable on many routes. Many routes parallel interstate highways along the Atlantic Seaboard and between the Midwest and the South. Integrating the CSX and Conrail systems will provide shippers with a real alternative to trucks by extending single-line service to new areas, thereby reducing inefficiencies in the system that require shippers to use more than one railroad. The plan also envisions agreements with Western railroads that will further enhance efficiency by moving rail cars and entire trains through interchange points with fewer delays. "The proposed division of Conrail's network will create expanded CSX and Norfolk Southern systems that are even stronger and more competitive than today," said A.R. "Pete" Carpenter, president and chief executive officer of CSX Transportation Inc., the corporation's rail unit. "The public benefits to be realized from the division are perhaps unprecedented in their magnitude." Plan Will Enhance Rail Competition, Service CSX officials said the plan will create single-line rail service that is faster and more reliable, giving shippers more options for freight movements to and from major markets in the East and improved connections with Western railroads. "The current railroad configuration divides the region, separating the vast consumer markets of the Northeast from the boom economy of the Southeast," said Carpenter. "This transaction brings down these barriers. By integrating Conrail's networks into those of CSX and Norfolk Southern, we will bring faster, simpler, more efficient, single-line service to shippers. We will offer industry access to broader markets and greater transportation options. "With a more attractive and efficient railroad, we can grow the business. We are committed to locating more facilities and business on our lines," said Carpenter. "We have been very successful in industrial development in the past, and the new system will provide us and our shortline partners with even greater opportunities." The 12 rail service routes that will be operated by CSX are: 1. Northeastern Gateway: Chicago to Boston and New York via Cleveland, Buffalo and Albany. 2. Eastern Gateway: Chicago to the Mid-Atlantic coast via Pittsburgh. 3. Alternative Chicago Gateway-Fort Wayne-Cleveland: Chicago to Cleveland via Fort Wayne, Ind., and Crestline, Ohio. 4. St. Louis Gateway: St. Louis to the Northeast via either Cleveland and Albany, or Pittsburgh and Cumberland, Md. 5. Michigan-Chicago Gateway: Detroit and Toledo to Grand Rapids, Mich., and Chicago. 6. Memphis Gateway: Memphis to New England via Cincinnati and Cleveland, and to the Mid-Atlantic coast via Cincinnati and Pittsburgh. 7. Atlantic Coast: Boston to Miami via New York, Philadelphia, Washington, Charleston and Savannah. 8. Michigan-Florida: Detroit to Miami via Cincinnati and Atlanta. 9. Chicago Gateway-Southeast: Chicago to Miami via Nashville, Birmingham and Montgomery, Ala. 10. Central: Southeast Coast to Detroit, Chicago and St. Louis via Huntington, W.Va., and Cincinnati. 11. Heartland: Nashville to Detroit and Cleveland via Terre Haute, Ind., and Indianapolis. 12. New Orleans Gateway: New Orleans to New York via Atlanta and Richmond. Officials Predict Improved Competition for Freight Transportation, Boost to American Competitiveness CSX officials said that the streamlined Eastern rail system will allow the company to compete more effectively for freight now transported over the road by trucks. The system will provide shippers with faster transit times, more efficient en route handling, and freight cars moving in larger "blocks," or groups of cars. "CSX is ready to extend the benefits of a larger network to a larger customer base. The integration of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the Eastern United States where freight traffic is heavy, highways are congested and the need for more competitive rail service is obvious," said Carpenter. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." The CSX operating plan also includes specialized networks for automotive traffic, intermodal freight and coal. * Auto Network: The auto industry's production and distribution needs will be served by a network that will move 83 percent of CSX's finished vehicle traffic in dedicated, multi-level trains. CSX will operate finished vehicle hubs in rail facilities at Cleveland, Cincinnati and Chicago; have direct access to assembly plants at East Liberty and Marysville, Ohio, and Linden and Edison, N.J.; and serve existing Conrail auto ramps in New Jersey, Massachusetts and New York. CSX will offer single-line service to seven of the East Coast's largest vehicle ports. * Intermodal Network: Single-line service on key intermodal service routes will create additional volumes of intermodal freight, enabling CSX to offer new or more efficient routings and eliminate extended drayage in several markets. New or expanded intermodal facilities are planned at Cleveland, Chicago, Philadelphia and the New York/New Jersey area. Expanded intermodal facilities in Chicago will allow direct rail-to-rail interchange with UP and BNSF for transcontinental traffic. Intermodal traffic now trucked north of Philadelphia can be diverted to rail. Significant opportunities for expanded rail handling of intermodal traffic include Chicago to Columbus, Ohio, and Cincinnati to Cleveland. * Coal Network: CSX will offer more single-line routings, expanding the market reach of coal producers to western New York, New England, southern Maryland and the Baltimore piers. CSX also will serve the mining regions of Pennsylvania and West Virginia on the routes of the Monongahela Railway, thus expanding market opportunities for coal producers in this region. Also, CSX will gain access to Ashtabula, Ohio, for coal moving to points on the Great Lakes. Major Capital Investments and Other Economic and Social Benefits Expected To fully capture the opportunities created by the acquisition, CSX plans to invest $488 million in capital improvements at key locations along its system. These enhancements include track connections with other railroads, expanded yard facilities, and mainline improvements. Specific examples include: * Upgrading of the CSX main line between Chicago and Greenwich, Ohio. * Expansion of yard facilities at Willard, Ohio. * Yard improvements, track connections and expanded intermodal facilities at Chicago. * Improved clearances for finished automobile traffic on the Atlantic Coast Gateway service route. * New and expanded intermodal facilities at Chicago, Cleveland and Philadelphia. * Major improvements to yard and fueling facilities in New York, including Buffalo and Albany. CSX expects to provide added economic development opportunities throughout the Eastern United States, particularly in areas served by Conrail. During the last five years, CSX has helped more than 500 companies locate or expand along its network. The plan will enhance local and state economies with opportunities to develop more business and create new jobs. It will bring to communities the attendant benefits of a stronger rail transportation network, including less highway congestion and better air quality due to greater competition with the trucking industry. Finally, it will accommodate additional freight traffic without impairing the safety or efficiency of existing passenger or commuter service on the lines CSX owns or over which it operates. CSX and Norfolk Southern announced on April 8 that they had reached an agreement to equitably divide Conrail's routes and assets. The Surface Transportation Board has announced that it will take up to 350 days to review the joint application and other issues associated with the transaction. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. # # # CSX's Internet Address: http://www.csx.com NOTE TO EDITORS: Selected documents pertaining to the STB application are available on CSX's web site at the above address. Click on "Bringing Balance to the East." ======== To: CSXExpress@csx.com Subject: CSX ACQUISITION OF CONRAIL GREATLY ENHANCES MARKET REACH OF WEST VIRGINIA COAL From: CSX Express Date: Mon, 23 Jun 97 20:23:04 +0000 -------- Contact: Gary Wollenhaupt (704) 571-2006 CSX ACQUISITION OF CONRAIL GREATLY ENHANCES MARKET REACH OF WEST VIRGINIA COAL JACKSONVILLE, Fla. - June 23, 1997 - West Virginia coal producers and other industries will gain direct, single-line rail service to new markets in the Northeast and Midwest and access to new markets as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to West Virginia. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," John W. Snow, chairman and CEO of CSX Corp. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." West Virginia will be served by four key CSX Transportation Inc. (CSXT) service routes that will improve the state's rail transportation links to additional Eastern markets. These routes are: * EASTERN GATEWAY SERVICE ROUTE - Chicago to Washington and Philadelphia via Pittsburgh and Martinsburg. * ST. LOUIS GATEWAY SERVICE ROUTE - St. Louis to the East Coast via Pittsburgh and Martinsburg. * MEMPHIS GATEWAY SERVICE ROUTE - Memphis to New England via Cincinnati, Pittsburgh and Martinsburg. * CENTRAL SERVICE ROUTE - Southeast United States to Detroit, Chicago and St. Louis via Charleston and Huntington. Benefits provided by the new routes include: * The improved routings and transit times will provide better rail service for Kanawha County's chemical industry and the state's steel producers. * Coal producers will gain single-line access to the port facilities at Ashtabula, Ohio, and to electric utilities in New York, New England and Maryland. * New markets will open for Monongahela region coal with single-line service to the export docks at Newport News, Va., and to domestic markets in Florida and the Great Lakes states. * CSXT's locomotive repair shop at Huntington will maintain locomotives acquired from Conrail, in addition to its current work. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," said A. R. "Pete" Carpenter, president and CEO of CSXT. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." The company's operating plan will not result in any rail line abandonments in West Virginia. CSXT has more than 3,300 employees in West Virginia, with an annual payroll of $97 million. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL PROVIDES GREATER ACCESS FOR TENNESSEE INDUSTRY - MEMPHIS TO BE MAJOR RAIL HUB From: CSX Express Date: Mon, 23 Jun 97 20:25:17 +0000 -------- Contact: Jane R. Covington (904) 366-2900 CSX RAIL PROPOSAL PROVIDES GREATER ACCESS FOR TENNESSEE INDUSTRY - MEMPHIS TO BE MAJOR RAIL HUB JACKSONVILLE, Fla. - June 23, 1997 - Tennessee freight rail customers will gain direct, single-line rail service to new markets in the eastern United States, and Memphis will serve as a major hub as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to Tennessee. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States where, freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," said A. R. "Pete" Carpenter, president and CEO of CSX Transportation Inc. (CSXT), the corporation's rail unit. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." Tennessee will be served by four key CSXT service routes that will improve the state's railroad links to nearly every market in the East and Midwest by providing single-line service. These routes are: * MEMPHIS GATEWAY SERVICE ROUTE - Memphis to Boston and New York via Nashville and Cincinnati. * MICHIGAN-FLORIDA SERVICE ROUTE - Detroit to Miami via Knoxville and Atlanta. * CHICAGO GATEWAY-SOUTHEAST SERVICE ROUTE - Chicago to Florida via Nashville and Birmingham. * HEARTLAND SERVICE ROUTE - Nashville to Detroit and Cleveland via Indianapolis. Benefits provided by the new routes include: * Cutting one to two days off current transit times for Tennessee shippers of auto parts, finished vehicles and chemicals. * Offering an opportunity for significant growth in intermodal freight business between Tennessee and the Great Lakes region. Second-morning service is planned between Memphis and Cleveland. * Improving transit times by one-half day via The Heartland Service Route from Nashville, a new route for automotive industry traffic to the North and East. * Providing access for Tennessee grain processors and livestock and poultry producers to grain sources in Indiana and Ohio that are currently served by Conrail. Single-line service from these states will increase the range of competitive options available to Tennessee grain buyers. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," Carpenter said. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT's operating plan will not result in any rail line abandonments in Tennessee. CSXT currently employs about 2,400 workers in Tennessee, with an annual payroll of $96 million. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL TO BOOST VIRGINIA'S ACCESS TO THE NORTH AND MID WEST From: CSX Express Date: Mon, 23 Jun 97 20:25:40 +0000 -------- Contact: Vance Richardson (804) 782-1527 CSX RAIL PROPOSAL TO BOOST VIRGINIA'S ACCESS TO THE NORTH AND MIDWEST JACKSONVILLE, Fla. - June 23, 1997 - Virginia rail customers will be served by six main line routing options under a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to Virginia. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways congested and the need for more competitive freight rail obvious," said A. R. "Pete" Carpenter, president and CEO of CSX Transportation Inc. (CSXT), the corporation's rail unit. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." Virginia will be served by six key CSXT service routes that will improve the state's railroad links to nearly every market in the East and Midwest by providing single-line service. These routes are: * ATLANTIC COAST SERVICE ROUTE - Florida to Boston via Richmond and Washington. * NEW ORLEANS GATEWAY SERVICE ROUTE - New Orleans to New York via Richmond and Washington. * CENTRAL SERVICE ROUTE - Rocky Mount, N.C., to St. Louis, Chicago and Detroit via Richmond and Cincinnati. * EASTERN GATEWAY SERVICE ROUTE - Washington to Chicago via Cumberland, Md., and Pittsburgh. * MEMPHIS GATEWAY SERVICE ROUTE - Washington to Memphis via Cincinnati and Nashville. * ST. LOUIS GATEWAY SERVICE ROUTE - Washington to St. Louis via Pittsburgh and Indianapolis. These corridors will extend single-line rail service between nearly all major markets east of the Mississippi River. Benefits provided by the new routes include: * Improved service between Virginia and the western United States will result from more efficient handling of freight cars and entire trains. * The system also offers significant potential to divert traffic from truck to rail, which will reduce truck traffic on congested Interstate highways running through Virginia with an attendant favorable impact on air quality by reducing air pollution caused by truck operations. * The state's producers of newsprint, printing paper and pulpboard will gain direct access to customers in the Northeastern United States, as well as expanded sources of raw materials. * Additional coal exports are anticipated at Hampton Roads because CSXT will obtain access to coal fields in western Pennsylvania and northern West Virginia that now are served exclusively by Conrail. * Virginia grain processors and poultry and livestock producers will gain additional sources of grain from regions now served by Conrail in the Midwest. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," Carpenter said. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT's operating plan will not result in any rail line abandonments in the state. It should not have an adverse impact upon commuter passenger operations in Northern Virginia, since CSXT has sufficient capacity to accommodate both freight traffic increases and Virginia Rail Express trains. CSXT currently employs 1,550 workers in Virginia, with an annual payroll of more than $60 million. CSXT is a business unit of CSX Corp., headquartered in Richmond. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL TO BOOST SOUTH CAROLINA'S ACCESS TO THE NORTH A ND MIDWEST From: CSX Express Date: Mon, 23 Jun 97 20:26:56 +0000 -------- Contact: Jane R. Covington (904) 366-2900 CSX RAIL PROPOSAL TO BOOST SOUTH CAROLINA'S ACCESS TO THE NORTH AND MIDWEST JACKSONVILLE, Fla. - June 23, 1997 - South Carolina rail freight customers will gain direct, single-line service to new markets in the Northeast and Midwest as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to South Carolina. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," said A. R. "Pete" Carpenter, president and CEO of CSX Transportation Inc. (CSXT), the corporation's rail unit. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." South Carolina will be served by three key CSXT service routes that will improve the state's railroad links to nearly every market in the Northeast and Midwest by providing single-line service. These routes are: * ATLANTIC COAST SERVICE ROUTE - Boston to Florida via Charleston and Savannah. * CENTRAL SERVICE ROUTE - Savannah to Detroit, Chicago and St. Louis via Spartanburg and Cincinnati. * NEW ORLEANS GATEWAY SERVICE ROUTE - New Orleans to New York via Atlanta, Greenwood and Chester. Benefits provided by the new routes include: * The Atlantic Coast Service Route will be competitive for container and trailer traffic currently moving through South Carolina by truck. Significant diversion of truck traffic to rail will alleviate highway congestion and improve air quality. * Direct links to markets in the Northeast will benefit several South Carolina industries - especially paper and steel. For example, steel producers also will have more competitive options for obtaining scrap from Northeastern markets now served by Conrail. * The state's pork and poultry producers will gain access to additional sources of grain from points in Indiana, Ohio and Michigan that are now served by Conrail. * Under the CSXT plan, transit times from the Southeast to destinations in the Great Lakes region will be cut by as much as one day. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," Carpenter said. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT's operating plan will not result in any rail line abandonments in South Carolina. CSXT has more than 1,100 employees in South Carolina, with an annual payroll of about $46 million. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL TURNS OHIO INTO MAJOR RAIL TRANSPORTATION HUB From: CSX Express Date: Mon, 23 Jun 97 20:28:36 +0000 -------- Contact: Robert L. Gould (904) 366-2900 CSX RAIL PROPOSAL TURNS OHIO INTO MAJOR RAIL TRANSPORTATION HUB JACKSONVILLE, Fla. - June 23, 1997 - Ohio's industries and agricultural producers will gain direct, single-line rail service to new markets in the Northeast and Midwest as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to Ohio. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States where, freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," said John W. Snow, Chairman and Chief Executive Officer of CSX Corp. "This signals a new era of competition and continuous improvement not just in freight rail, but in the entire transportation sector." CSX Transportation Inc. (CSXT) will be investing nearly $175 million in Ohio. As a result of this investment, CSXT will spend approximately $100 million to upgrade and double-track its main line from Chicago-Greenwich, Ohio. CSX will acquire a Norfolk Southern route from Crestline to Chicago (via Fort Wayne, Ind.) that will be upgraded and used as an auxiliary route to and from Chicago for bulk commodity freight. About $6.5 million will be spent to upgrade the line. Additionally, CSXT will spend approximately $50 million for an expansion of yard facilities at Willard. Willard will become CSXT's major east-west freight-car classification yard. Trains will be assembled at Willard for interchange with Western railroads beyond Chicago, which will reduce delays and interchange at Chicago. Willard also will be one of four new CSXT "service lane" headquarters, where operations, crew management, maintenance, engineering and service planning are directed at the regional level. CSXT will spend about $15 million to construct or upgrade rail connections at Greenwich, Crestline, Sidney and Marion. Collinwood Yard in Cleveland and Queensgate Yard at Cincinnati will become regional hubs for automotive industry traffic. Under the acquisition agreement, CSXT will gain direct access to vehicle-assembly plants at East Liberty and Marysville. CSXT will invest $3 million to enhance rail service to the auto assembly plant at Marysville. CSXT will spend $10.1 million to expand capacity and acquire new equipment at the Collinwood Yard facility in Cleveland, which will be a major Midwestern hub for intermodal freight. CSXT's access to routes and yard facilities in Columbus will dramatically improve customer options for rail service - especially intermodal freight and coal. Ohio will be served by nine key CSXT service routes that will improve the state's rail links to markets in the East and South. These routes are: * NORTHEASTERN GATEWAY SERVICE ROUTE - Chicago to New York and Boston via Cleveland. * EASTERN GATEWAY SERVICE ROUTE - Chicago to Washington and Philadelphia via Willard, Akron and Youngstown. * ST. LOUIS GATEWAY SERVICE ROUTE - St. Louis to Buffalo and the East Coast via Marion, Mansfield and Canton. * MICHIGAN-CHICAGO SERVICE ROUTE - Detroit to Chicago via Toledo. * MEMPHIS GATEWAY SERVICE ROUTE - Memphis to the East Coast via Cincinnati, Marion, Mansfield and Canton. * MICHIGAN-FLORIDA SERVICE ROUTE - Detroit to Atlanta and Miami via Toledo, Dayton and Cincinnati. * CENTRAL SERVICE ROUTE - Detroit to the Southeast via Toledo, Dayton and Cincinnati. * HEARTLAND SERVICE ROUTE - Cleveland to Indianapolis and Nashville via Mansfield and Marion, and Detroit to Nashville via Toledo. * ALTERNATE CHICAGO SERVICE ROUTE - Cleveland to Chicago via Fort Wayne, Ind. Benefits provided by these routes include: * Service routes to the South will open additional markets to Ohio grain producers. * Steel and auto producers will benefit from single-line access to points south of the Ohio River. * The Northeastern and Eastern gateway routes will provide two high-capacity rail lines between the East and Midwest. The corridor between Greenwich and Chicago will be double-tracked to increase rail capacity. * CSXT also will acquire a Norfolk Southern route between Crestline, Fort Wayne and Chicago that will be used for freight that is less time-sensitive. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," said A. R. "Pete" Carpenter, president and CEO of CSXT. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." In addition, CSXT is planning an aggressive industrial development program in the state, designed to assist companies in locating or expanding their businesses along CSXT rail routes. Since 1992, CSXT has helped locate or expand more than 500 businesses along its lines system-wide. CSXT's operating plan will not result in any rail line abandonments in Ohio. CSXT has more than 2,800 employees in Ohio, with an annual payroll of $110 million. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL CREATES GREATER RAIL LINKS FOR PENNSYLVANIA IND USTRY From: CSX Express Date: Mon, 23 Jun 97 20:28:45 +0000 -------- Contact: Robert L. Gould (904) 366-2900 CSX RAIL PROPOSAL CREATES GREATER RAIL LINKS FOR PENNSYLVANIA INDUSTRY JACKSONVILLE, Fla. - June 23, 1997 - Pennsylvania rail freight users will gain direct, single-line service to new markets in the South as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to Pennsylvania, including the creation of a service lane headquarters in Philadelphia. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States where, freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," John W. Snow, chairman and CEO of CSX Corp. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." Under the operating plan, CSX Transportation (CSXT) and Norfolk Southern will share access to the Philadelphia/South New Jersey commercial area. CSXT will be assigned property at Greenwich Yard in Philadelphia and will develop a new $15 million state-of-the-art intermodal facility at or near the site. An additional $12 million in capital investment for improved yards, track connections and other facilities is scheduled for Pennsylvania. Clearances will be improved on the Atlantic Coast Corridor to accommodate multi-level equipment, including Conrail's line between Philadelphia and Boundbrook, and CSXT's line between Philadelphia and Baltimore. CSXT will invest a total of $27 million in capital improvements in Pennsylvania. In addition, CSXT plans an aggressive economic development program in the state. Since 1992, CSXT has assisted more than 500 companies locate or expand on it rail lines. New Routes Pennsylvania will be served by six key CSXT service routes that will improve the state's railroad links to markets in the South by providing single-line service. These routes are: * EASTERN GATEWAY SERVICE ROUTE - Chicago to Washington, Baltimore and Philadelphia via Pittsburgh. * NORTHEASTERN GATEWAY SERVICE ROUTE - Chicago to Boston and New York via Cleveland and Erie. * ST. LOUIS GATEWAY SERVICE ROUTE - St. Louis to Philadelphia via Pittsburgh, and St. Louis to Boston via Erie. * MEMPHIS GATEWAY SERVICE ROUTE - Memphis to Philadelphia via Cincinnati and Pittsburgh. * ATLANTIC COAST SERVICE ROUTE - Miami to Boston via Philadelphia. * NEW ORLEANS GATEWAY SERVICE ROUTE - New Orleans to New York via Atlanta and Philadelphia. Benefits The Eastern and Northeastern gateway routes will offer two high-capacity lines between the Midwest and the Atlantic Coast. Single-line rail service will extend to Florida and to connections with Western railroads at New Orleans and Memphis. Benefits of these new routes include: * The new CSXT route combinations will cut transit times by as much as one day. * CSXT will have access to coal mines served by the Monongahela Railway in Western Pennsylvania and northern West Virginia. * Coal mines in this area will gain single-line service to additional markets and become competitive for export at ports such as Baltimore and Newport News, Va. * A track modernization project is scheduled for yard facilities at Newell, Pa., to enhance coal train movements. Shared Assets Areas In southern New Jersey and Philadelphia, CSXT and Norfolk Southern will reach customers through a "shared assets" arrangement. This jointly managed operation will serve this area, facilitating a variety of services for the two carriers. This joint operation will not set rates, establish routes or handle contract or billing arrangements with shippers. Costs will be apportioned between CSXT and Norfolk Southern. Shared assets will include routes between Marcus Hook, Pa., and Trenton, N.J., including all Conrail Philadelphia stations and certain segments of the Northeast Corridor and southern New Jersey. Headquarters will be at Pavonia Yard. The yards include Stoney Creek, Midvale, Frankford Junction, Pavonia, Millville, Paulsboro and the ore pier at Greenwich Yard. CSXT will be allocated Woodbourne Yard and certain property at Greenwich Yard. Norfolk Southern will be allocated the Morrisville intermodal facility and West Falls Yard. Commodities The expanded rail system includes benefits for commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," said A. R. "Pete" Carpenter, president and CEO of CSXT. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT's operating plan will not result in any rail line abandonments in Pennsylvania. Commuter and Amtrak operations in Pennsylvania will not be materially affected by the operating plan, since the primary passenger routes are multiple-track and have capacity for additional freight business. The initial operating plan does not anticipate additional freight train service on these routes. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL BOOSTS NEW YORK'S INDUSTRIAL REACH TO THE SOUTH AND MIDWEST From: CSX Express Date: Mon, 23 Jun 97 20:30:12 +0000 -------- Contact: Robert L. Gould (904) 366-2900 CSX RAIL PROPOSAL BOOSTS NEW YORK'S INDUSTRIAL REACH TO THE SOUTH AND MIDWEST JACKSONVILLE, Fla. - June 23,1997 - New York freight customers will gain direct, single-line rail service to many new markets in the South and Midwest as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to New York. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," said John W. Snow, Chairman and Chief Executive Officer, CSX Corp. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." New Routes New York will be served by six key CSX Transportation Inc. (CSXT) service routes that will improve the state's railroad links to the South and Midwest. These routes are: * NORTHEASTERN GATEWAY SERVICE ROUTE - New York and Newark to Chicago via Albany and Buffalo. * EASTERN GATEWAY SERVICE ROUTE - New York and Newark to Chicago via Philadelphia and Pittsburgh. * ST. LOUIS GATEWAY SERVICE ROUTE - Boston and New York to St. Louis via Albany and Buffalo. * MEMPHIS GATEWAY SERVICE ROUTE - Boston and New York to Memphis via Albany and Buffalo. * ATLANTIC COAST SERVICE ROUTE - Florida to Boston via New York and Albany. * NEW ORLEANS GATEWAY SERVICE ROUTE - New Orleans to New York and Albany via Atlanta and Richmond. Benefits CSXT will invest more than $25 million in capital improvements in New York, including upgrades to mechanical and fueling facilities at Buffalo's Frontier Yard and Albany's Selkirk Yard. Albany will become a new "service lane" headquarters where operations, crew management, dispatching, engineering, maintenance and service planning will be controlled at the regional level. Benefits of these new routes include: * The state's rail freight users will be able to reach nearly all markets south of Philadelphia and east of the Mississippi River with single-line service. * New York ports will gain improved connections to inland origins and destinations. * Transit times between New York and the Mississippi River gateways to Western railroads will be reduced by at least one day for most freight shipments. * The route network will enable CSXT to compete effectively with trucks - especially along major highways from New York to Florida and Georgia. * Diversion of freight from truck to rail will help alleviate highway congestion and reduce air pollution emissions. * Service improvements in this corridor are expected to divert more than 26,000 truckloads annually to rail movement. * New York City-area intermodal freight customers will benefit from improvements to intermodal facilities in northern New Jersey. Buffalo's Frontier Yard will continue to classify and dispatch traffic for the Niagara gateway and will also be used to improve the efficiency of freight interchange with Canadian railroads. The rail terminal at Selkirk will play a major role in the movement of railcars to Southern and Western destinations. Shared Assets Areas In northern New Jersey, CSXT and Norfolk Southern will reach customers through a "shared assets" arrangement. This jointly managed operation will serve this area, facilitating a variety of services for the two carriers. This joint operation will not set rates, establish routes or handle contract or billing arrangements with shippers. Costs will be apportioned between CSXT and Norfolk Southern. Shared assets areas will include 89 route miles, with headquarters at Oak Island Yard. Besides Oak Island, the yards include Ridgefield Heights, Doramus Avenue, Bayonne, Port Newark, Elizabethport, Portside, Dockside, Point Reading, Manville, Bayway, Brown's, Linden and Metuchen. CSXT will be allocated yard facilities at North Bergen, South Kearny and certain property at Elizabethport Yard. Norfolk Southern will be allocated Croxton and E-Rail intermodal facilities and property adjacent to E-Rail Yard. CSXT and Norfolk Southern both will have access to the APL terminal in Kearny, the Port Newark/Elizabeth Marine Terminal, Portside Yard and Port Newark Yard. Commodities The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," said A. R. "Pete" Carpenter, president and CEO of CSXT. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT's operating plan will not result in any rail line abandonments in New York. The plan is not expected to have an impact on either Amtrak or commuter passenger operations in the New York/New Jersey metropolitan area. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL EXPECTED TO BOOST NORTH CAROLINA'S RAIL LINKS T O NORTH AND MIDWEST From: CSX Express Date: Mon, 23 Jun 97 20:31:26 +0000 -------- Contact: Gary Wollenhaupt (704) 571-2006 CSX RAIL PROPOSAL EXPECTED TO BOOST NORTH CAROLINA'S RAIL LINKS TO NORTH AND MIDWEST JACKSONVILLE, Fla. - June 23, 1997 - North Carolina rail freight customers will gain better service to the Northeast and Midwest as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to North Carolina. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," said A. R. "Pete" Carpenter, president and CEO of CSX Transportation Inc. (CSXT), the corporation's rail unit. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." North Carolina will be served by three key CSXT service routes that will improve the state's railroad links to nearly every market in the Northeast and Midwest by providing single-line service. The routes are: * ATLANTIC COAST SERVICE ROUTE - Boston to Miami via Rocky Mount and Fayetteville. * CENTRAL SERVICE ROUTE - Rocky Mount to Detroit, Chicago and St. Louis via Richmond, Va., and Cincinnati. * NEW ORLEANS GATEWAY SERVICE ROUTE - New Orleans to New York via Hamlet and Rocky Mount. Benefits of these routes include: * The Atlantic Coast Service Route will be competitive for container and trailer traffic now moving through North Carolina by truck, and significant diversion of traffic to rail is expected. * The Central Service Route will reduce transit times to destinations on the Great Lakes by as much as one day. * The state's wood and paper industries will be able to reach additional markets in the Northeast and Mid-Atlantic states with single-line service. * Pork and poultry producers will have access to more sources of feed grain from the Midwest. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," Carpenter said. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT's operating plan will not result in any rail line abandonments in North Carolina. CSXT has nearly 1,400 employees in North Carolina, with an annual payroll of $55 million. Another CSX Corp. subsidiary, Sea-Land Service Inc., headquartered in Charlotte, employs 650 people with an annual payroll of $37 million. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL TO GREATLY IMPROVE NEW JERSEY'S RAIL LINKS WITH THE MIDWEST AND SOUTH From: CSX Express Date: Mon, 23 Jun 97 20:31:53 +0000 -------- Contact: Elisabeth Gabrynowicz (804) 782-6775 CSX RAIL PROPOSAL TO GREATLY IMPROVE NEW JERSEY'S RAIL LINKS WITH THE MIDWEST AND SOUTH JACKSONVILLE, Fla. - June 23, 1997 - New Jersey rail freight customers will gain better service to the South and Midwest as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to New Jersey. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," said A. R. "Pete" Carpenter, president and CEO of CSX Transportation Inc. (CSXT), the corporation's rail unit. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." New Routes New Jersey will be served by six single-line CSXT service routes that will improve the state's rail links to nearly every market in the South. These routes are: * NORTHEASTERN GATEWAY SERVICE ROUTE - Newark to Chicago via Buffalo and Cleveland. * EASTERN GATEWAY SERVICE ROUTE - Newark to Chicago via Philadelphia and Pittsburgh. * ST. LOUIS GATEWAY SERVICE ROUTE - Newark to St. Louis via Buffalo and Cleveland. * MEMPHIS GATEWAY SERVICE ROUTE - Newark to Memphis via Cincinnati. * ATLANTIC COAST SERVICE ROUTE - Boston to Miami via Newark and Philadelphia. * NEW ORLEANS GATEWAY SERVICE ROUTE - Newark to New Orleans via Philadelphia and Atlanta. Benefits Benefits of the new routes include: * Freight customers north of Philadelphia will gain single-line service to Florida, New Orleans, Memphis and many other destinations in the South. * Freight will move more efficiently, cutting transit times by one day or more. * New Jersey's ports will obtain single-line access to additional destinations in the Midwest and South. * The operating plan will make CSXT more competitive with truck transportation, and diversion of freight to rail will reduce congestion on the state's major highway routes. CSXT and Norfolk Southern will share facilities in the Newark area, including the Port Newark/Elizabeth Marine Terminal area and sections of the Northeast Corridor. A similar arrangement will apply to customers adjacent to Philadelphia. Both railroads will have access to existing auto terminals in these areas and to assembly plants at Linden and Edison, N.J. CSXT will acquire the right to use Conrail intermodal facilities at North Bergen and Kearny and will have joint access with Norfolk Southern to intermodal facilities at Port Elizabeth. CSXT plans to acquire the E Port Yard property near Port Elizabeth for future expansion of intermodal service. Shared Assets Areas In southern and northern New Jersey, CSXT and Norfolk Southern will reach customers through a "shared assets" arrangement. A jointly managed operation will serve these areas, facilitating a variety of services for the two carriers. This joint operation will not set rates, establish routes or handle contract or billing arrangements with shippers. CSXT and Norfolk Southern will compete for the business of customers within the shared area and will independently establish rates and handle customer relations and billing. Costs will be apportioned between CSXT and Norfolk Southern. Northern New Jersey. Shared assets will include 189 route miles, with headquarters at Oak Island Yard. Besides Oak Island, the yards include Ridgefield Heights, Doramus Avenue, Bayonne, Port Newark, Elizabethport, Portside, Dockside, Point Reading, Manville, Bayway, Brown's, Linden and Metuchen. CSXT will be allocated yard facilities at North Bergen, South Kearny and certain property at Elizabethport Yard. Norfolk Southern will be allocated Croxton and E-Rail intermodal facilities and property adjacent to E-Rail Yard. CSXT and Norfolk Southern both will have access to the APL terminal in Kearny, the Port Newark/Elizabeth Marine Terminal, Portside Yard and Port Newark Yard. Southern New Jersey/Philadelphia. Shared assets include 240 route miles between Marcus Hook, Pa., and Trenton, N.J., including all Conrail Philadelphia stations and certain segments of the Northeast Corridor and southern New Jersey. Headquarters will be at Pavonia Yard. The yards include Stoney Creek, Midvale, Frankford Junction, Pavonia, Millville, Paulsboro and the ore pier at Greenwich Yard. CSXT will be allocated Woodbourne Yard and certain property at Greenwich Yard. Norfolk Southern will be allocated the Morrisville intermodal facility and West Falls Yard. Commodities Strategic planning for the expanded rail system also focuses on key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," Carpenter said. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT's operating plan will not result in any rail line abandonments in New Jersey. The plan is not expected to have an impact on either Amtrak or commuter passenger operations in the New Jersey/New York metropolitan area. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL WILL GIVE MISSISSIPPI GREATER REACH INTO NEW NO RTHERN MARKETS From: CSX Express Date: Mon, 23 Jun 97 20:33:54 +0000 -------- Contact: Vance Richardson (804) 782-1527 CSX RAIL PROPOSAL WILL GIVE MISSISSIPPI GREATER REACH INTO NEW NORTHERN MARKETS JACKSONVILLE, Fla. - June 23, 1997 - Mississippi industries will gain direct, single-line rail service to new markets in the northeastern United States as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to Mississippi. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways are congested and the need for more competitive freight rail obvious," said A. R. "Pete" Carpenter, president and CEO of CSX Transportation Inc. (CSXT), the corporation's rail unit. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." Mississippi will be served by a key CSXT main line - the New Orleans Gateway Service Route - which runs from New Orleans to New York via Gulfport, Biloxi and Pascagoula. Benefits of these new routes include: * The New Orleans Gateway route will expand market opportunities for Mississippi freight users to reach customers north of Philadelphia. Single-line service increases efficiency and makes rail freight more cost-competitive. * The state's paper, pulp and pulpboard manufacturers will obtain new outlets for their products, and Mississippi processors of scrap paper will be able to tap sources in the urban regions of the Northeast. * Mississippi pork and poultry producers, who already receive grain from Illinois and Indiana, will be able to reach more sources in those states from grain producers now served only by Conrail. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," Carpenter said. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT's operating plan will not result in any route abandonments in Mississippi. CSXT has 67 employees in Mississippi, with an annual payroll of $2.4 million. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL PROJECTED TO GREATLY ENHANCE MICHIGAN'S RAIL LI NKS TO THE SOUTH From: CSX Express Date: Mon, 23 Jun 97 20:34:02 +0000 -------- Contact: Elisabeth Gabrynowicz (804) 782-6775 CSX RAIL PROPOSAL PROJECTED TO GREATLY ENHANCE MICHIGAN'S RAIL LINKS TO THE SOUTH JACKSONVILLE, Fla. - June 23, 1997 - Michigan's auto industry will benefit from improved rail service and single-line access to additional markets in the South as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to Michigan. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways are congested and the need for more competitive freight rail obvious," said A. R. "Pete" Carpenter, president and CEO of CSX Transportation Inc. (CSXT), the corporation's rail unit. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." New Routes Michigan will be served by four key CSXT service routes that will improve the state's railroad links to the South and Mid-Atlantic regions by providing single-line service. These routes are: * MICHIGAN-CHICAGO SERVICE ROUTE - Detroit to Grand Rapids and Chicago. * MICHIGAN-FLORIDA SERVICE ROUTE - Detroit to Miami via Cincinnati and Atlanta. * CENTRAL SERVICE ROUTE - Detroit to the Southeast via Cincinnati, and to St. Louis via Cincinnati. * HEARTLAND SERVICE ROUTE - Detroit to Indianapolis and Nashville. Benefits Benefits provided by the new routes include: * Efficiencies gained by the operating plan will reduce transit time for many freight shipments by at least one day. * The auto industry will benefit from new hubs at Chicago, Cleveland and Cincinnati, which will improve the handling of finished vehicles. More automotive traffic originating in Michigan will move to its destinations via single-line service. * The state's grain producers will obtain access to additional markets in the southern states because of competitive single-line service. * Michigan steel producers also will be able to transport their output to automobile and appliance manufacturing facilities in the South without changing railroads. * Intermodal freight service from Florida, Georgia and New Orleans will be extended to Detroit. Certain shipments that now are trucked from Detroit to Cincinnati will now be diverted to rail transportation - eliminating an estimated 8,000 highway movements per year and saving about 2.4 million truck miles. Shared Assets Areas A jointly controlled operation will manage the eight freight yards and tracks in Detroit, facilitating a variety of services for the two carriers. Both CSXT and Norfolk Southern will reach customers through this "shared assets" arrangement. This joint operation will not set rates, establish routes or handle contract or billing arrangements with shippers. CSXT and Norfolk Southern will compete for the business of customers within the shared area, and will independently establish rates and handle customer relations and billing. Costs will be apportioned between CSXT and Norfolk Southern. Shared assets include eight major Conrail yards and 85 route miles between Trenton and Utica, Mich. Headquarters will be at North Yard. Besides North, the yards include River Rouge, Livernois, Sterling, Mound Road, Mack, Lincoln and Trenton. Commodities The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," Carpenter said. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT's operating plan will not result in any rail line abandonments in Michigan. CSXT has nearly 1,500 employees in Michigan, with an annual payroll of $58 million. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL GIVES MARYLAND GREATER REACH INTO NEW NORTHERN MARKETS From: CSX Express Date: Mon, 23 Jun 97 20:35:23 +0000 -------- Contact: Robert L. Gould (904) 366-2900 CSX RAIL PROPOSAL GIVES MARYLAND GREATER REACH INTO NEW NORTHERN MARKETS JACKSONVILLE, Fla. - June 23, 1997 - Maryland rail freight customers will gain direct, single-line rail service to new markets in the northeastern United States as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to Maryland. The plan creates a network that will be highly competitive with truck traffic and offers significant potential to alleviate highway congestion on Maryland's Interstate roads. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways are congested and the need for more competitive freight rail obvious," said A. R. "Pete" Carpenter, president and CEO of CSX Transportation Inc. (CSXT), the corporation's rail unit. "This signals a new era of competition and continuous improvement not just in freight rail, but in the entire transportation sector." Maryland will be served by five key CSXT service routes that will improve the state's railroad links to nearly every market in the East and Midwest by providing single-line service. These routes are: * EASTERN GATEWAY SERVICE ROUTE - Baltimore to Chicago via Cumberland and Pittsburgh. * ST. LOUIS GATEWAY SERVICE ROUTE - Baltimore to St. Louis via Cumberland, Pittsburgh and Indianapolis. * MEMPHIS GATEWAY SERVICE ROUTE - Baltimore to Memphis via Cumberland, Cincinnati and Nashville. * ATLANTIC COAST SERVICE ROUTE - Florida to Boston via Savannah, Baltimore and New York. * NEW ORLEANS GATEWAY SERVICE ROUTE - New Orleans to New York via Atlanta, Richmond and Baltimore. These routes will extend single-line service between Maryland and the Northeast and nearly all major markets in the Ohio Valley. Benefits of these new routes include: * Access for Maryland's paper industry to new markets in the Northeast and to additional sources for raw materials. * The state's grain processors will be able to receive grain from new Midwest sources that today are served exclusively by Conrail. * Expansion of coal sourcing options for southern Maryland utilities and delivery of additional coal to the Baltimore piers for export as a result of new single-line routings from the Monongahela coal region of Pennsylvania and West Virginia. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," Carpenter said. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT's operating plan will not result in any rail abandonments in Maryland. CSXT and Conrail have been planning with MARC to construct a direct rail connection between the Amtrak line and Baltimore's Camden Station. This will allow increased use of Camden Station for commuters without affecting freight service on the Camden line. CSXT employs nearly 1,900 workers in Maryland, with an annual payroll of $76 million. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL TO BOOST MASSACHUSETTS FREIGHT RAIL LINKS TO TH E SOUTH AND MIDWEST From: CSX Express Date: Mon, 23 Jun 97 20:36:04 +0000 -------- Contact: M. Adam Hollingsworth (904) 366-2900 CSX RAIL PROPOSAL TO BOOST MASSACHUSETTS FREIGHT RAIL LINKS TO THE SOUTH AND MIDWEST CSX Rail Proposal to Boost Massachusetts Freight Rail Links to the South and Midwest JACKSONVILLE, Fla. - June 23, 1997 - Massachusetts will gain direct, single-line freight railroad service to places as far away as Miami, New Orleans and Memphis as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to Massachusetts. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," John W. Snow, Chairman and Chief Executive Officer, CSX Corp. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." Massachusetts will be served by four key CSX Transportation Inc. (CSXT) service routes that will improve the state's rail links to nearly every market in the South and Midwest by providing single-line service. These routes are: * NORTHEASTERN GATEWAY SERVICE ROUTE - Boston to Chicago via Albany and Cleveland. * ST. LOUIS GATEWAY SERVICE ROUTE - Boston to St. Louis via Albany and Cleveland. * MEMPHIS GATEWAY SERVICE ROUTE - Boston to Memphis via Cincinnati. * ATLANTIC COAST SERVICE ROUTE - Boston to Florida via Baltimore and Richmond. Benefits provided by the new routes include: * Massachusetts rail customers will now have single-line access all the way to Florida and the Gulf Coast. Formerly, freight being hauled south of Philadelphia had to be interchanged with other railroads. * The new long-distance service routes will expand intermodal traffic throughout the eastern half of the United States and offer the potential to alleviate highway congestion in the Northeast by diverting freight shipments from truck to rail. * Under the CSXT plan, transit times may be cut by one to two days for some freight traffic moving between Massachusetts and Florida and to rail gateways on the lower Mississippi River. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," said A. R. "Pete" Carpenter, president and CEO of CSXT. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT recently announced a $220 million capital improvements project to double-track the railroad's main line between Greenwich, Ohio, and Chicago, tying into Conrail's existing route between Boston and Cleveland. This will create a high-capacity rail corridor between New England and the Midwest that will increase efficiencies and accommodate larger volumes of freight. CSXT's operating plan will not result in any rail abandonments in Massachusetts and will not have any adverse impacts on the commuter operations of the Massachusetts Bay Transportation Authority. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL WILL GIVE LOUISIANA GREATER REACH INTO NEW NORT HERN MARKETS From: CSX Express Date: Mon, 23 Jun 97 20:36:38 +0000 -------- Contact: Vance Richardson (804) 782-1527 CSX RAIL PROPOSAL WILL GIVE LOUISIANA GREATER REACH INTO NEW NORTHERN MARKETS JACKSONVILLE, Fla. - June 23, 1997 - Louisiana industries will gain direct, single-line rail service to new markets in the northeastern United States as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to Louisiana. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," said A. R. "Pete" Carpenter, president and CEO of CSX Transportation Inc. (CSXT), the corporation's rail unit. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." Louisiana will be served by CSXT's New Orleans Gateway Service Route, which will extend from New Orleans to New York via Montgomery, Ala., and Atlanta. New Orleans will be a major rail transportation gateway to the southeast and northeast United States. Benefits provided by the new routes include: * The New Orleans Gateway will be competitive with other rail routings to the East from cities on the Mississippi River - especially for freight that moves in containers and trailers. * This service route also has the potential to divert 40,000 truckloads of freight annually from the highways along this corridor, which will alleviate highway congestion and reduce air pollution. * The state's manufacturers will benefit by having single-line rail access to markets north of Philadelphia, which will make them more competitive in marketing products in the populous northeastern United States. * Grain processors will have access to more options for acquiring grain from Ohio Valley producers now served exclusively by Conrail. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," Carpenter said. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT will continue to operate out of Gentilly Yard at New Orleans, which today classifies cars received from Western carriers into blocks for movement to the East Coast. Gentilly's facilities are considered adequate to accommodate traffic growth. CSXT has more than 120 employees in Louisiana, with an annual payroll of $5 million. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL TO PROVIDE KENTUCKY INDUSTRY WITH NEW RAIL ACCE SS From: CSX Express Date: Mon, 23 Jun 97 20:37:29 +0000 -------- Contact: Jane R. Covington (904) 366-2900 CSX RAIL PROPOSAL TO PROVIDE KENTUCKY INDUSTRY WITH NEW RAIL ACCESS JACKSONVILLE, Fla. - June 23, 1997 - Kentucky coal, steel and auto producers will gain direct, single-line access to new markets in the northeastern United States and Great Lakes regions as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that CSX's expanded route network will bring to Kentucky. CSX's plan also calls for Louisville to remain an important rail transportation hub. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," said A. R. "Pete" Carpenter, president and CEO of CSX Transportation Inc. (CSXT), the corporation's rail unit. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." Kentucky will be served by five key CSXT service routes that will improve the state's rail links to the Northeast and to New England. These routes are: * MEMPHIS GATEWAY SERVICE ROUTE - Memphis to New York via Nashville and Louisville. * MICHIGAN-FLORIDA SERVICE ROUTE - Detroit to Florida via Covington, Corbin and Atlanta. * CHICAGO GATEWAY-SOUTHEAST SERVICE ROUTE - Chicago to Florida via Henderson, Hopkinsville and Nashville. * HEARTLAND SERVICE ROUTE - Nashville to Cleveland and the Northeast via Hopkinsville and Henderson. * CENTRAL SERVICE ROUTE - Chicago and Detroit to the Southeast via Covington, Maysville and Russell. Kentucky motor vehicle and steel producers will gain more efficient delivery of finished products to Midwest and Northeast destinations. These more efficient deliveries will provide benefits for Kentucky that include: * Transit times between Kentucky and New England will be cut by as much as one day and will increase rail's competitive position with trucks. * The state's coal producers will become more competitive in supplying coal to customers in areas now served by Conrail. Grain processors also will have access to additional sources of grain from Indiana and Ohio. * Louisville's Osborn yard will remain an important freight car switching hub for traffic from the South and Southeast. No material change is expected at key CSXT facilities in the state. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," Carpenter said. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT's operating plan will not result in any rail line abandonments in Kentucky. CSXT employs about 4,300 workers in Kentucky, with an annual payroll of $179 million. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL PROVIDES CHICAGO AREA WITH $70 MILLION IN RAIL ENHANCEMENTS From: CSX Express Date: Mon, 23 Jun 97 20:39:12 +0000 -------- Contact: Kathleen A. Burns, ABC (904) 366-2900 CSX RAIL PROPOSAL PROVIDES CHICAGO AREA WITH $70 MILLION IN RAIL ENHANCEMENTS JACKSONVILLE, Fla. - June 23, 1997 - CSX Corp. and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail Inc. In addition, CSX filed a separate operating plan outlining the benefits that CSX's expanded route network will bring to Illinois. The plan includes more than $70 million in capital investments for the Chicago area in the form of track upgrades, expanded yards, terminals and related facilities. The plan also gives Illinois shippers access to several key CSX routes that will improve rail freight service to nearly every market in the East and South. This expanded access will come from the routes CSX plans to acquire from Conrail. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States where, freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," said A. R. "Pete" Carpenter, president and CEO of CSX Transportation Inc. (CSXT), the corporation's rail unit. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." Illinois will be served by six key CSXT service routes that will offer enhanced service to the East and South. These routes are: * NORTHEASTERN GATEWAY SERVICE ROUTE - Chicago to Cleveland, Boston and New York. * EASTERN GATEWAY SERVICE ROUTE - Chicago to Pittsburgh, Washington, Baltimore and Philadelphia. * ST. LOUIS GATEWAY SERVICE ROUTE - St. Louis to Pittsburgh, Cleveland and the East Coast via Vandalia and Effingham. * MICHIGAN-CHICAGO SERVICE ROUTE - Chicago to Grand Rapids and Detroit. * CHICAGO GATEWAY-SOUTHEAST SERVICE ROUTE - Chicago to Nashville, Miami via Danville and Terre Haute, Ind. * ALTERNATE CHICAGO SERVICE ROUTE - Chicago to Cleveland via Fort Wayne, Ind. Under the CSXT plan, the Northeastern and Eastern corridors will provide two high-capacity routes between Illinois and the East. Rail customers will benefit from the St. Louis gateway route, which is 100 miles shorter and 24 hours faster than existing CSXT lines to the East. Benefits provided by the new routes to Illinois include: * Illinois grain producers will gain access to new markets in the South. * The state's coal producers will be able to reach a greater number of electric utility customers in the Eastern states. Direct benefits to the Chicago area include: * Approximately $31 million will be spent in the Chicago area to upgrade track, improve connections to other railroads and modernize yard facilities. * An additional $39 million is earmarked for intermodal projects. * Development of a major intermodal facility at an inactive yard near 59th Street to handle traffic originating and terminating in Chicago and to improve the interchange of intermodal shipments with other railroads. * Expansion of intermodal facilities at Bedford Park (71st Street and Harlem Avenue, Bedford Park) and Forest Hill (at Western Avenue and 71st Street in Chicago) yards. * Reduction of the current volume of truck transfer of rail freight shipments between railroad yards in Chicago. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," Carpenter said. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT's Chicago-Greenwich, Ohio, main line will be upgraded and double-tracked to create a world-class, high-capacity corridor between the Midwest and East Coast. A route from Chicago to Cleveland via Fort Wayne, Ind., will be acquired from Norfolk Southern and used for trains carrying bulk commodities such as grain and coal. CSXT's operating plan is not expected to have an adverse impact on commuter passenger operations in the Chicago area. The only projected route abandonment in Illinois is a 29-mile Conrail line from Danville to Paris. Freight customers at Danville, Chrisman and Paris will continue to receive rail service via other CSXT routes. No freight customers will lose rail service. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL GREATLY ENHANCES INDIANA'S MARKET REACH THROUGH OUT THE EASTERN UNITED STATES From: CSX Express Date: Mon, 23 Jun 97 20:39:31 +0000 -------- Contact: Kathleen A. Burns, ABC (904) 366-2900 CSX RAIL PROPOSAL GREATLY ENHANCES INDIANA'S MARKET REACH THROUGHOUT THE EASTERN UNITED STATES JACKSONVILLE, Fla. - June 23, 1997 - Indiana will be a leading rail transportation hub, and Indianapolis will become a regional operations center in a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board to acquire the routes and assets of Conrail. One component of the application is CSX's proposed operating plan, which includes details about the company's expanded role in Indiana and planned capital expenditures in the state that will total in excess of $120 million. "Indiana overall, and Indianapolis in particular, will play an increasingly important role for CSX under this transaction," said John W. Snow, Chairman and Chief Executive Officer of CSX Corp. The plan calls for Indianapolis to become a regional operating headquarters and for Conrail's Avon Yard, to be acquired by CSX Transportation Inc. (CSXT), to become a major freight hub in the new CSX rail system. "CSXT's rail upgrade project across northern Indiana and Ohio will provide a highly efficient, high-capacity rail link between the Midwest and Northeast," Snow added. Some details of the operating plan related to Indiana include: * Indianapolis will become a new "service lane" headquarters for CSXT, where operations, crew management, dispatching, engineering, maintenance and service planning will be directed at the regional level. CSXT now operates seven regional centers of this type. * CSXT's Chicago-Greenwich, Ohio, main line, which runs across northern Indiana will be upgraded as part of a project to create a high-capacity corridor between the Midwest and the Northeast. CSXT's capital investment on this project in Indiana is projected at $110 million, with an additional $6 million in expenditures in the state this year through the purchases of local services. * Avon Yard, west of Indianapolis, will serve as a major classification yard for the CSXT system, expediting freight cars to the northeastern United States and assembling blocks of rail cars and entire trains for movement beyond the Mississippi River. Local freight operations at Indianapolis will be centered at Hawthorne Yard on the city's southeast side. Capital investment in yard and facility improvements in Indianapolis is estimated at $10 million. * CSXT also plans to acquire from Norfolk Southern a parallel route between Chicago, Fort Wayne and central Ohio that will be used as an auxiliary service route for bulk commodity freight traffic, such as grain and coal. Roughly $6.5 million will be invested in track improvements. "CSXT's customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," said A.R. "Pete" Carpenter, president and CEO of CSXT. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." Carpenter said more efficient, reliable rail transportation will make Indiana a more attractive location for economic development. He added that CSXT will increase its already aggressive efforts, working with state and local economic development offices, to bring new industries to Indiana and the region. Indiana will be served by eight key CSXT service routes that will improve the state's railroad links to nearly every market in the East, Midwest and South by providing single-line service. These routes are: * NORTHEASTERN GATEWAY SERVICE ROUTE - Chicago to Cleveland, Boston and New York via Gary and Auburn. * EASTERN GATEWAY SERVICE ROUTE - Chicago to Pittsburgh, Washington, and Philadelphia via Gary and Auburn. * ALTERNATE CHICAGO SERVICE ROUTE - Chicago to Cleveland via Fort Wayne. * ST. LOUIS GATEWAY SERVICE ROUTE - St. Louis to the East Coast via Terre Haute, Indianapolis and Muncie. * MICHIGAN-CHICAGO SERVICE ROUTE - Detroit to Chicago via Gary and Auburn. * CHICAGO GATEWAY-SOUTHEAST SERVICE ROUTE - Chicago to Miami via Terre Haute and Evansville. * CENTRAL SERVICE ROUTE - Southeast United States to Chicago and St. Louis via Indianapolis or Terre Haute. * HEARTLAND SERVICE ROUTE - Nashville, Tenn., to Detroit and New England via Evansville, Terre Haute, Indianapolis and Muncie. The Northeastern and Eastern Gateway routes will provide high-capacity rail lines between the Midwest and East across northern Indiana. Corridors to the Southeast will open grain and other market opportunities to Indiana customers now served by Conrail. Improved service for Indiana's auto and steel production facilities also will result. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "The CSXT system will create vast new opportunities for rail movement of freight with increased efficiency and greater reliability," Carpenter said. "The single-line service and operating efficiencies that this acquisition will create will allow us to reduce transit times, often by one or more days depending on the route." CSXT's operating plan will not result in any rail line abandonments in the state, nor is it expected to have an adverse impact on commuter passenger operations in the Chicago area. CSX Corp. employs about 4,800 workers in Indiana with an annual payroll of $115 million. About 1,400 are employees of CSXT and the remaining work for American Commercial Barge Lines, based in Jeffersonville, Ind. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL PROVIDES FLORIDA GREATER REACH INTO NEW NORTHER N MARKETS From: CSX Express Date: Mon, 23 Jun 97 20:40:40 +0000 -------- Contact: M. Adam Hollingsworth (904) 366-2900 CSX RAIL PROPOSAL PROVIDES FLORIDA GREATER REACH INTO NEW NORTHERN MARKETS JACKSONVILLE, Fla. - June 23, 1997 - Florida's industries and agricultural producers will gain direct, single-line rail service to new markets in the Northeast and Midwest as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail Inc. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to Florida. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," said A. R. "Pete" Carpenter, president and CEO of CSX Transportation Inc. (CSXT), the corporation's rail unit. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." Florida will be served by three key CSXT service routes that will improve the state's railroad links to nearly every market in the Northeast and Midwest by providing single-line service. These routes are: * ATLANTIC COAST SERVICE ROUTE - Miami to New York and Boston. * MICHIGAN-FLORIDA SERVICE ROUTE - Miami and Tampa to Detroit via Atlanta and Cincinnati. * CHICAGO GATEWAY-SOUTHEAST SERVICE ROUTE - Miami and Tampa to Chicago via Birmingham and Nashville. Benefits provided by the new routes include: * The state's citrus, paper and phosphate industries will benefit from increased access to Northern customers and Florida grain processors will receive additional supply sources. * Florida electric utilities will obtain an additional option for coal acquisition through single-line access to the Monongahela mining region of Western Pennsylvania. * The network of routes also is intended to enhance the competitiveness of rail transportation. Anticipated diversion of freight from truck to rail will alleviate highway congestion and reduce air pollution. * Expanded growth opportunities for CSXT's intermodal yard at Jacksonville resulting from an increased amount of freight diverted from truck to rail. Some Conrail customer service, crew management and administrative functions also will be transferred to Jacksonville. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," Carpenter said. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT's operating plan will not result in any rail line abandonments in Florida. Headquartered in Jacksonville, CSXT employs more than 6,500 workers in Florida, with an annual payroll in excess of $300 million. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL PROVIDES GEORGIA WITH NEW RAIL LINKS INTO NORTH ERN MARKETS From: CSX Express Date: Mon, 23 Jun 97 20:40:56 +0000 -------- Contact: M. Adam Hollingsworth (904) 366-2900 CSX RAIL PROPOSAL PROVIDES GEORGIA WITH NEW RAIL LINKS INTO NORTHERN MARKETS JACKSONVILLE, Fla. - June 23, 1997 - Georgia rail freight customers will gain direct, single-line access to new markets in the northeastern United States as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to Georgia. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," said A. R. "Pete" Carpenter, president and CEO of CSX Transportation Inc. (CSXT), the corporation's rail unit. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." Georgia will be served by five key CSXT service routes that will improve the state's links to markets in the Northeast by providing single-line service. These routes are: * ATLANTIC COAST SERVICE ROUTE - Boston to Miami via Savannah and Waycross. * MICHIGAN-FLORIDA SERVICE ROUTE - Detroit to Miami via Cincinnati and Atlanta. * CHICAGO GATEWAY-SOUTHEAST SERVICE ROUTE - Chicago to Miami via Nashville and Birmingham. * CENTRAL SERVICE ROUTE - Savannah to Detroit, Chicago and St. Louis. * NEW ORLEANS GATEWAY SERVICE ROUTE - New Orleans to New York via Montgomery and Atlanta. Benefits provided by the new routes include: * The new system will extend single-line rail service from Georgia all the way to New England, which will improve market access for Georgia manufacturers of motor vehicles and paper products. * Additional grain sources at Midwest points now served by Conrail will be available to the state's livestock and poultry raisers and grain processors. * The operating plan also establishes a network of lines that will be highly competitive with truck transportation along the East Coast. * Direct intermodal trains running between Atlanta and New England and from Savannah to the Northeast will open additional opportunities for moving containers and trailers by rail. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," Carpenter said. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." According to the plan, no substantial physical or personnel changes are anticipated at CSXT facilities in Georgia, and Waycross will continue to be a major hub. CSXT's operating plan will not result in any rail line abandonments in Georgia. CSXT has more than 3,300 employees in Georgia, with an annual payroll of $137 million. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL GIVES ALABAMA GREATER REACH INTO NEW NORTHERN M ARKETS From: CSX Express Date: Mon, 23 Jun 97 20:42:41 +0000 -------- Contact: Jane R. Covington (904) 366-2900 CSX RAIL PROPOSAL GIVES ALABAMA GREATER REACH INTO NEW NORTHERN MARKETS JACKSONVILLE, Fla. - June 23, 1997 - Alabama industries will gain direct, single-line rail service to new markets in the northeastern United States as a result of a proposal by CSX Corp. for operating the routes it plans to acquire from Conrail Inc. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to Alabama. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," said A. R. "Pete" Carpenter, president and CEO of CSX Transportation Inc. (CSXT), the corporation's rail unit. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." Alabama will be served by two key CSXT service routes that will improve the state's railroad links to the Northeast and Midwest by providing single-line service. These routes are: * NEW ORLEANS GATEWAY SERVICE ROUTE - New Orleans to New York via Montgomery and Atlanta. * CHICAGO GATEWAY-SOUTHEAST SERVICE ROUTE - Chicago to Miami via Birmingham and Montgomery. The New Orleans Gateway route will expand market opportunities for Alabama industries to serve customers north of Philadelphia. Benefits provided by the new routes will include: * The state's paper, pulp and pulpboard manufacturers will obtain new outlets for their products, and Alabama processors of scrap paper will be able to tap sources in the urban regions of the Northeast. * Alabama pork and poultry producers, who already receive grain from Illinois and Indiana, will be able to reach more sources on the Chicago Gateway route from regions now served exclusively by Conrail in those states. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed with customers in mind to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," Carpenter said. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT's operating plan will not result in any route abandonments in Alabama. CSXT has more than 1,680 employees in Alabama, with an annual payroll of about $86 million. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com ======== To: CSXExpress@csx.com Subject: CSX RAIL PROPOSAL IDENTIFIES DISTRICT OF COLUMBIA FOR $19 MILLION TUNNEL UPGRADE PROGRAM From: CSX Express Date: Mon, 23 Jun 97 20:42:50 +0000 -------- Contact: Robert L. Gould (904) 366-2900 CSX RAIL PROPOSAL IDENTIFIES DISTRICT OF COLUMBIA FOR $19 MILLION TUNNEL UPGRADE PROGRAM JACKSONVILLE, Fla. - June 23, 1997 - A proposal by CSX Corp. for operating the new routes it plans to acquire from Conrail Inc. will create a rail network that is highly competitive with trucking, providing significant local benefits to the District of Columbia by reducing truck traffic on its congested highway corridors. CSX and Norfolk Southern Corp. today filed a joint application with the federal Surface Transportation Board for regulatory approval of their $10 billion purchase of Conrail. In addition, CSX filed a separate operating plan that outlines the benefits that the railroad's expanded route network will bring to the District of Columbia. "CSX is ready to extend the benefits of a larger network to a larger customer base. The consolidation of Conrail routes into the new CSX network offers an unprecedented opportunity to improve freight transportation in the eastern United States, where freight traffic is heavy, highways are congested and the need for more competitive freight rail is obvious," said A. R. "Pete" Carpenter, president and CEO of CSX Transportation Inc. (CSXT), the corporation's rail unit. "This signals a new era of competition not just in freight rail, but in the entire transportation sector." District of Columbia-area freight customers will have access to five CSXT service routes that will improve links to markets in the Northeast and Midwest by offering single-line service. These routes are: * EASTERN GATEWAY SERVICE ROUTE - Washington to Chicago via Cumberland, Md., and Pittsburgh. * ST. LOUIS GATEWAY SERVICE ROUTE - Washington to St. Louis via Pittsburgh and Indianapolis. * MEMPHIS GATEWAY SERVICE ROUTE - Washington to Memphis via Cincinnati and Nashville. * ATLANTIC COAST SERVICE ROUTE - Florida to Boston via Savannah and Washington. * NEW ORLEANS GATEWAY SERVICE ROUTE - New Orleans to New York via Atlanta and Washington. CSXT plans to invest $19 million to upgrade the Virginia Avenue Tunnel in Washington to accommodate multilevel freight cars which carry finished automobiles. Benefits provided by these proposed expansions include: * The new network will increase the efficiency of rail transportation along the entire East Coast. Currently, freight originating or terminating north of Philadelphia encounters delays because it must be interchanged between railroads. * CSXT's operating plan will enhance rail freight's competitiveness with trucking, especially in the congested I-95 and I-81 corridors along the East Coast. Diversion of freight from truck to rail also will have a favorable impact upon air pollution emissions. CSXT anticipates diverting nearly 50,000 truckloads from the highways in these two corridors. The expanded rail system includes benefits for key commodity groups that make up a majority of rail freight traffic: coal, steel, automotive, grain, wood, paper products, chemicals, minerals and general merchandise traffic. Routes and connections were designed to facilitate commodity flows to expanded market areas created by the acquisition. "CSXT customers will be able to reach new markets for their products and expand their options for obtaining raw materials and components," Carpenter said. "A fundamental advantage of the new system is its ability to link major producing markets in the South with consumer markets in the Northeast and Midwest with single-line service. The result will be a faster, more flexible and cost-efficient network." CSXT will continue its discussions with Maryland transportation officials to consider the feasibility of increasing commuter trains on the Washington-Brunswick line by separating freight and passenger operations onto separate tracks. CSXT and its 29,000 employees provide rail transportation and distribution services over an 18,500 route-mile network in 20 states, the District of Columbia and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. ### CSX's Internet Address: http://www.csx.com