This presentation discusses opportunities for expanding logistics capabilities on the US East Coast in anticipation of the Panama Canal expansion. It notes trends driving demand like port capacity constraints and highlights advantages of the proposed Logistics Port in Manatee, Florida like its proximity to markets, rail access through CSX, and potential to consolidate cargo for rail transport. The port would provide an "inside the fence" logistics park to facilitate rail aggregation and reduce transportation costs for users.
2. Agenda
Global Perspective
Port Comparison
The Rail Advantage
Logistic Port – Manatee: Our Markets
What is Logistics Port – Manatee?
Port Manatee/Panama
April 19, 2010
Page 2
4. Industry Trends – Panama Canal Expansion
Expansion of Panama Canal Number of Transpacific Services
Complete in 2014
Continued expansion of East
Coast ports
Major freight transportation
projects for east coast railroads
Further development of
warehousing, temperature
controlled & distribution facilities
in U.S. southeast
Continued proliferation of AWS
via Panama Canal
Less dependence on AWS via
West Coast and transcontinental
rail
Port Manatee/Panama
April 19, 2010
Page 4
5. Industry Trends – Port Capacity
Even with the US Economic Slowdown, Container Traffic Growth in the Next 10 Years
will Push Most Gateway Ports to Full Capacity
19.5
20 18.4
14.5
15
11.4
10.9
9.7 10.0
10 8.9
7.8 8.0
7.4
5.8
5
0
Pacific Northwest Pacific Southwest North Atlantic South Atlantic/Gulf
Demand 2010 Capacity 2010 Demand 2020
Port Manatee/Panama
April 19, 2010
Page 5
6. Total Logistics Cost Breakdown
60%
50.3%
50%
40%
30%
21.8%
20%
9.5% 7.8%
4.3%
10% 2.7%
2.2% 1.2%
0%
Customer
Transportation Inventory Labor Rent Admin Supplies Other
Service
Source: Grubb & Ellis
Port Manatee/Panama
April 19, 2010
Page 6
8. Growth in All Water Services to U.S. East Coast
Port Manatee/Panama
April 19, 2010
Page 8
9. What Does This Mean for Gulf/East Coast Ports?
Need for enhanced
port capacity
Investment in rail
infrastructure
Harbor and
channel
deepening
projects
Port Manatee/Panama
April 19, 2010
Page 9
10. How Do Ports Compare?
Terminal Expansion Consumption Zone
Air Draft Proximity to Panama Canal
Port Manatee/Panama
April 19, 2010
Page 10
11. Terminal Expansion
Ports with New Terminal Expansion Capabilities
Craney Island - VPA
Port Manatee – 10 Year Build-Out
Jasper County Terminal
GPA/SCA
Port Manatee/Panama
April 19, 2010
Page 11
17. CSX is a leading freight railroad in the eastern United States.
$9 billion annual revenues
Covers over 21,000 route
miles in 23 states and 2
Canadian provinces
Accesses two-thirds of the US
population, and all the major
metropolitan areas
Reaches any point in North
America with seamless
connections with all major
railroads and 230 shortline
railroads
Proven leader in temperature
controlled shipments
Port Manatee/Panama
April 19, 2010
Page 17
18. CSX is meeting the challenge by continuing aggressive
reinvestment in capital in 2010.
CSX Capital Expenditures 2010 Capital Spending Plan
$ 1,900
$1,719 $1,716
$ 1,700 $1,655 $1,623
10%
$ 1,500 $1,443 10%
$ 1,300
$ 1,100 12%
$ 900 68%
$ 700
Infrastructure Regulatory
$ 500 Strategic Equipment
'06 '07 '08 '09 '10
CSX is investing in faster transit, greater
reliability, and expanded capacity to meet
current and future customer needs.
Port Manatee/Panama
April 19, 2010
Page 18
19. CSX offers several options to integrate rail into your supply
chain.
Rail Direct
Freight is railed directly from shipper to receiver
Rail to Truck
Freight is railed to a cross-dock where it is transferred to a truck for local
delivery
Rail to Warehouse
Freight is railed directly to a warehouse where it can be stored for pick-up
or scheduled for delivery
Load Sharing
Freight is consolidated onto a railcar at origin, railed to a central location,
deconsolidated and trucked to multiple destinations
Forward Position
Freight is railed to a warehouse and forward positioned for later distribution
Port Manatee/Panama
April 19, 2010
Page 19
20. CSX offers a range of services, from single railcar to whole
trains designed to fit your transportation mix.
Single Railcar Trainloads
Runs from rail Customized
dock to rail dock solutions with
in our existing dedicated trains
hub-and-spoke between specific
network origins and
destinations
CSX can provide a menu of standard or
tailored solutions to meet your requirements.
Port Manatee/Panama
April 19, 2010
Page 20
21. CSX is a leader in sustainable solutions, and offers
tremendous benefits for your supply chain.
A CSX train can carry over 280
truckloads of freight
US EPA estimates that railroads
consume 3 times less fuel and produce 3
times less harmful emissions vs. trucks
152 million tree seedlings would take 10
years to absorb the 6.5 million tons of
C02 that our operations save vs. trucks in
a year
CSXT is the first railroad to join EPA’s
Climate Leaders Program and is an EPA
Smart Way Charter Member
Port Manatee/Panama
April 19, 2010
Page 21
22. CSXT serves all major markets in the eastern US.
$9B+ Revenue
21,000+ Route Miles
216,000+ Daily Carloads
4,000+ Locomotives
84,000+ Freight Cars
30,000+ Employees
70+ Ports Serves
$1.7B Reinvested Capital
Port Manatee/Panama
April 19, 2010
Page 22
23. Ports are a key extension of the CSX network.
2009 CSX International Commodity MixMix
2009 CSX International Commodity
Auto 1.5%
by Revenue
by Revenue
Coal 59.1%
23.8%
1.5% Intermodal 15.6%
Merchandise 23.8%
Forest Products
Chemicals
59.1%
Agricultural
15.6%
Emerging Markets
Metals
Auto Coal Intermodal Merchandise Food & Consumer
Phosphates & Fertilizers
Total Revenue of $1.2B
Port Manatee/Panama
April 19, 2010
Page 23
24. Port Manatee volume in 2009 exceeded 8,000 carloads.
2009 CSX International Commodity Mix
2009 CSX International Commodity Mix
13%
1%
Port Manatee
Revenue $6.75M
Carloads 8,390
Import 5%
86% Export 95%
Paper & Forest Products (Pulpboard, Woodpulp)
Emerging Markets (Machinery)
Phosphates & Fertilizers (Export Phosphates)
Port Manatee/Panama
April 19, 2010
Page 24
25. Rail is the optimum solution for future highway congestion.
Today
Highway congestion is severe and
is generally anticipated to worsen
West Coast ports were bottlenecks
prior to the recession
Ongoing expansion of East Coast
ports will change flow of supply
2020
chains
Rail provides a cost effective and
environmentally friendly CSX
Territory
transportation solution
Port Manatee/Panama
April 19, 2010
Page 25
26. CSX offers several key advantages.
Competitive, market-based services
Customized high speed solutions
Economies of scale via load consolidation
Access to all major metropolitan areas in the country
Solid experience in temperature-controlled shipments
Tremendous savings in carbon emissions
Port Manatee/Panama
April 19, 2010
Page 26
31. What is Logistics Port – Manatee?
Multi-modal Logistics Center
Wharf To Rail Capabilities
Inside-the-Fence Aggregation Park
Key Node Within the CSX System
Minimize “Total Landed Cost” for Corporate America
Central Distribution Hub for Florida
Availability of Substantial Economic Incentives
SAVING TIME AND $ IN THE SUPPLY CHAIN
Port Manatee/Panama
April 19, 2010
Page 31
32. ‘Inside-the-Fence’ Rail Aggregation Park
Reduce Long Haul Transportation Costs
Aggregate Rail Users to Fill Unit Trains
Internal Overweight Product Movements
Non-DOT Vehicles for Internal Movements
Receive FTZ (Foreign Trade Zone) Benefits
User Benefit = Port Manatee Attracts Business
Port Manatee/Panama
April 19, 2010
Page 32
33. Encouragement Zone
Pre Application Meeting
• Shareholders
Site Plan Review
• 60 Days Approval
Building Permit Review
• 3-5 Days
Port Manatee/Panama
April 19, 2010
Page 33