CSX files operating plan for integrating Conrail lines.WASHINGTON--(BUSINESS WIRE)--June 23, 1997--
Plan will dramatically improve rail service in Northeast
Rail carriers will complete more effectively with trucks for freight movements
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CSX Corp. 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 United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. .
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 Mississippi River
River, central U.S. It rises at Lake Itasca in Minnesota and flows south, meeting its major tributaries, the Missouri and the Ohio rivers, about halfway along its journey to the Gulf of Mexico. 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 transit time
the time required for ingesta to pass through the gastrointestinal tract; a shorter transit time is seen in conditions associated with gut hypermotility, such as diarrhea. Delayed passage from any cause results in a longer 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 "CSX" redirects here. For the parent company, see CSX Corporation. For other uses, see CSX (disambiguation).
CSX Transportation (AAR reporting marks CSXT) is a Class I railroad in the United States, owned by the CSX Corporation. 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 operating by CSX are:
1. Northeastern Gateway: Chicago to Boston and New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 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 Fort Wayne, city (1990 pop. 173,072), seat of Allen co., NE Ind., where the St. Joseph and St. Marys rivers join to form the Maumee River; inc. 1840. It is the second largest city in the state, a major railroad and shipping point, a wholesale and distribution hub, , Ind., and Crestline, Ohio Crestline is a city in Crawford and Richland counties in Ohio, USA. It is part of the Mansfield-Bucyrus, OH Combined Statistical Area. The population was 5,088 at the 2000 census. It is the third largest city in Crawford County. .
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 Grand Rapids, city (1990 pop. 189,126), seat of Kent co., SW central Mich., on the Grand River; inc. 1850. The second largest city in the state, it is a distribution, wholesale, and industrial center for an area that yields fruit, dairy products, farm produce, , Mich. and Chicago.
6. Memphis Gateway: Memphis to New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. 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 Savannah, city, United States
Savannah, city (1990 pop. 137,560), seat of Chatham co., SE Ga., a port of entry on the Savannah River near its mouth; inc. 1789. .
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 Terre Haute (tĕr`ə hōt, tĕr`ē hŭt), city (1990 pop. 51,483), seat of Vigo co., W Ind., on the Wabash River; inc. 1816. , Ind. and Indianapolis.
12. New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded 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 con·gest·ed
Affected with or characterized by congestion.
congested ENT adjective Referring to a boggy blood-filled tissue. See Nasal congestion. 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 Marysville is a city in Union County, Ohio, United States. It is the county seat of Union County.GR6 The population was 15,942 at the 2000 census, and the Census Bureau estimated 17,621 in 2006. , and Linden and Edison, New Jersey Edison Township (usually known as Edison) is a township in Middlesex County, New Jersey, United States. As of the United States 2000 Census, the township had a total population of 97,687, making it at the time the fifth largest municipality in New Jersey. As of the U.S. ; 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 Drayage
A trucking company freight charge for the pick up or delivery of an ocean container. 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 BNSF Burlington Northern Santa Fe Corporation (railroad) 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 Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. , and Cincinnati to Cleveland.
-- Coal Network: CSX will offer more single-line routings, expanding the market reach of coal producers to western New York
Western New York refers to the westernmost region of New York State. , New England, southern Maryland Southern Maryland in popular usage is composed of the state's southernmost counties on the "Western Shore." This region includes all of Calvert, Charles and St. Mary's counties and southern portions of Anne Arundel and Prince George's counties. and the Baltimore piers. CSX also will serve the mining regions of Pennsylvania and West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures
Area, 24,181 sq mi (62,629 sq km). Pop. 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 The condition of a network when there is not enough bandwidth to support the current traffic load.
congestion - When the offered load of a data communication path exceeds the capacity. 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.
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CSXT Chessie System Railway and Seaboard Coast Line Railroad Transportation (Jacksonville, FL, USA) 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 District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). and Ontario, Canada. CSXT is a business unit of CSX Corp., headquartered in Richmond, Va. -0-
CSX's Internet Address: http://www.csx.com
NOTE TO EDITORS: Selected documents pertaining to the STB See set-top box.
STB - set-top box application are available on CSX's web site at the above address. Click on "Bringing Balance to the East."
CONTACT: CSX Corporation
Thomas E. Hoppin, 804/782-1450