Executive Speaker Series Luncheon June 19, 2012 LATC Mission Statement "Holding true to our traditional values, we will provide transportation professionals, shippers and suppliers a forum to foster relationships, share ideas and solutions while raising funds to support our membership and communities."
Friends of the LATC
LATC Membership LATC Membership Benefits: Networking Opportunities to industry personnel Discounted rate to Executive Speaker Series Luncheons LATC Transporter Newsletter - Insightful news and articles Annual Membership Directory - Effective resource Discount on subscription of the Journal of Commerce Membership Dues help fund philanthropic efforts, which include local charities, scholarships and endowments
New Members for the LATC Mr. Jeffery Potter, Daum Commercial Real Estate Services
Executive Speaker Series
David Parker Chairman/CEO/President Covenant Transport Thursday, July 12, 2012 Monterey Hill Banquet Center Monterey Park
Events
Tickets are now Available!! Transportation Night Knott’s Berry Farm September 21 st 7:00 pm to 1:00 am
89 th Annual Los Angeles Transportation Club Installation Gala Hyatt Regency, Long Beach Friday, November 2, 2012 6:30 pm 2011 Expense – ($4,000) Current – ($0)
Please visit the LATC at: www.latc.la 2011 Goal – $6,500 Current – $5,710
Friends of the LATC
The Richard Hollingsworth Professional Development Scholarship
Bill Clements Vice President, Intermodal CSX Transportation
Embracing Growth in Intermodal Los Angeles Transportation Club, June 19, 2012 Bill Clement, VP-Intermodal, CSX
Intermodal industry volume has steadily grown . . . U.S. Intermodal Volume Units in Millions 14.1M Volume has increased more than four-fold 3.1M 1980 1985 1990 1995 2000 2005 2010 Source: Intermodal Association of North America 15 15 15
…and the intermodal renaissance will continue Freight Market Value • Intermodal expected to outpace all by Mode other modes in growth 67% 57% • Over-the-road alternative is increasingly challenged – Declining truckload productivity due to highway congestion 21% – Shrinking driver pool due to 11% demographics and regulation – Greening of the supply chain and exposure to spikes in diesel prices 2008 2035 Truck Intermodal • Intermodal service potential is increasing thanks to investments Source: 2009 Facts & Figures, USDOT/FHWA 2010. 16
IDP and GDP projections point to continued growth US Industrial Production US Gross Domestic Product Source: Global Insight March 2012 17 17
The truckload conversion opportunity is substantial Addressable Eastern Freight Market Market Strategy 14 Million Units • Broad market reach to convert highway-to-rail CSX NS Opportunity – Market through intermediate channel partners – Stimulate demand directly with Beneficial Cargo Owners 2.9 9.3 • Enhance service reliability and 2.2 customer satisfaction • Network investments improve reliability and flexibility of Freight volume for lengths service offerings of haul over 550 miles Sources: AAR CS-54 and Global Insight’s Transearch data 18 18 18
Intermodal revenue increased 19% in Q1 Revenue $389M Volume 600K RPU $648 First Quarter First Quarter Year-Over-Year Change — Record domestic volume on continued truck conversions — Strong international growth driven Revenue 19% by onboarding new Maersk traffic Volume 9% — RPU higher on positive mix, RPU 10% improved pricing and fuel recovery Ongoing Drivers Intermodal Sectors — Strategic investments enhance growth and network operations Domestic 49 % 51 % — Growth driven by truck conversions International and expanded service offerings First Quarter Volume 19
CSX is well positioned in the international market International Volume Year-Over-Year Growth • Looking Forward – Grow organically with existing customer base – Support customer growth with network infrastructure and port efforts (e.g. National Gateway) – Open new markets, such as Louisville, to drive growth 20 20 20
CSX international market to grow with global trade CSX’s portfolio of U.S. Containerized Tonnage international customers TEUs in Millions will grow with imports and exports in the U.S. Customer focus, service reliability and network enhancements will further generate new opportunities Source: TTX, Piers/JOC, TranSystems 2011 CSX well positioned for 21 Panama Canal 21 21
The domestic market has grown steadily Domestic Volume Year-Over-Year Growth Q1 • Looking Forward – Stimulate growth through highway to rail conversions – Customer focus and service reliability drive unique value – Open new North American markets, including Mexico – Growing container capacity 22 22 22
The CSX/UP solution is delivering as promised • UMAX program provides access to key markets – Extensive network with over 600 service lanes – Ramp-to-Ramp and Door-to-Door products1 – Mexico service available via Passport • Ongoing product development – Entering to new markets – Expand presence at Mexican gateways Multiple Terminal Markets New England (BOS, SPR, WOR), Ohio (CIN, CLV, COL) N. California (LATHROP, OAK), S. California (COI, LATC, LA) Single Terminal Markets Gateways: CHI, ESL, MEM and NOLA 23
Our CSX/BNSF solution is delivering strong growth • Increasing capacity will continue to support growth – Over 30,000 53-foot dedicated containers – Expansion into new markets • Door-to-Door product offers transcon service in both directions – Committed pricing – Expansion to other markets 24
Listening to customers is sharpening our focus Voice of the Customer Satisfaction Drivers Show up when you told us you would Planning If you can’t, tell us in advance Service Improve our customer service experience Customer CSX is an extension of our Assistance company 25
Relentlessly focused on highway-to- rail conversion Service Reliability Network Design • Creating Truck- BCO Competitive Service • Consistency over Education • NWOH – Hub Channel Speed & Spoke Strategy • New England • Dedicated National • Louisville Accounts T eam • Florida • International • H2R Optimizer • D2D • Private Asset • Rail Asset 26 26 26
Continued capital investments support growth • Worcester expansion provides Montreal sizeable growth capacity Detroit Worcester • New and expanded terminals in Pittsburgh key markets Columbus • Double-stack clearances in key Charlotte corridors to capitalize on efficiency of rail • Investment in domestic containers to support continued H2R conversions Winter Haven New Terminals Expansions 27
NW Ohio: successful opening, delivering on service West Coast through-trains bypass Chicago, saving one day of transcontinental transit Congestion reduced in Chicago, Cleveland, and Syracuse 1,500-2,000 75-100 Lifts per Day Units Gated per Day Over 50 new service lanes generating 50K+ loads in 2012 On-time availability improved by greater than 10% in several high- volume lanes 27 per day 30 minutes Trains Processed Avg. Dray Dwell 28
How tomorrow is taking shape for intermodal . . . Customer Expanding service offerings to meet needs of current and future customers Focus Creating truck-competitive service to Service profitably convert over-the-road freight Reliability Making infrastructure improvements to Network Capabilities support customer growth and network reach 29 29 29
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