csx environmental magazine092

7/30/2019 Csx Environmental Magazine092

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Leadership through environmental innovation

Bringing it Home

Whats a Freight Train?

An Even Cleaner Tomorrow


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I N T R O D U C T I O N

W

e are in the midst of exciting and challenging times.

To increase energy security and avert the worst

possible consequences of a warming globe, theNatural Resources Defense Council (NRDC) believes the

United States must redirect our resources toward cleaner and

energy-efficient technologies to reduce emissions by 80 percent

by 2050. To get there we must put in place a system that will

cap global warming pollution by unleashing innovation in the

private sector across the country.

Americas freight and passenger railroads offer a compelling

and effective way to help us meet our energy and climate goals.

Building a modern and efficient rail infrastructure will reduce

highway congestion, generate needed jobs, combat global

warming, retain and increase freight and passenger rail capacity, and strengthen the

foundation of a new, clean energy economy. Now is the time to make smart investments

in low-carbon rail infrastructure.

In large part due to the steadily rising number of miles being driven on Americas roads

and highways, the transportation sector has been the second largest, fastest growing

contributor to global warming pollution in the United States during the past two decades.

But we can reduce congestion and pollution if we move more freight to rail, since one

freight train can carry the load of 280 trucks. Since the U.S. Department of Transportation

predicts that demand for freight transportation will increase over 90% by 2035, we must

take steps today to ensure that freight rail infrastructure is in place to handle this increased

freight load.

Rail is also more energy efficient. In 2007, railroads moved a ton of freight an average

of 436 miles per gallon of fuel, which is three times as far as that freight could be

moved by truck, giving rail a much smaller carbon footprint. If we decided to shift

just 10 percent of long-haul truck traffic to rail, the cumulative greenhouse gas savings

would be 12 million tons per year. This would result in a national fuel savings of over

1 billion gallons of fuel a year.

Investments in greater rail capacity will prove essential to lowering the carbon intensity

of the U.S. transportation sector. Thats why I look forward to working with CSX and the

rail industry to make these the best of times by rapidly enacting policies that cap carbon

emissions and boost investment in our nations rail system.

Sincerely,

Peter Lehner, Executive Director

Natural Resources Defense Council


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H O W T O M O R R O W M O V E S V O L . 1 N O . 1

PublisherJeffrey Barasch

Editorial DirectorWendy Murphy

Art DirectorBruce McGowin

WriterDon Heymann

How Tomorrow Moves is published

exclusively for CSX by:

Onward Publishing, Inc.

In partnership with National Geographic

6 Bayview Avenue, Northport, NY 11768

Phone: 631.757.8300

2009 CSX All rights reservedFor more information

about CSXs environmental

initiatives please call

1-877-TellCSX

(1-877-835-5279).

10 Whats a Freight Train?Though railroads have long been a fixture

in American commerce, todays railroads rely

on cutting-edge technology to deliver superior

efficiency and reliability.

14 An Even Cleaner TomorrowCSX is committed to leadership in technology

and operational efficiency leadership that

promises a clean future for transportation.

Ordinary products travel an extraordinary

distance to find their way to our homes.

Find out how railroads are making this

trip cleaner than ever.

4

Bringing it Home

10

4

LEADERSHIP THROUGH ENVIRONMENTAL INNOVATIONVol. 1 No.1

FPO


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HBringingit


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omeW

hat do computers, refrigerators, TVs, tomatoes,

clothing, shoes, toys, automobiles and the

boards that frame your house have in common?

Chances are, freight railroads played a major

role in moving these varied products, and

many others, to your front door.

A system that worksAmericas rail system, an impressive and efficient network

that connects major cities, ports, and centers of industry, has

developed and evolved over the last 200 years to become the

circulatory system of North American commerce. Freight

railroads are an economically viable and ecologically sound

solution for long-haul shipments of all kinds. This efficiency

enables the movement of vast amounts of freight while

expending relatively little energy. Each year, railroads safely

and economically move 29 percent of the total ton-miles

of freight conveyed in the U.S.

Just how do all

those products

find their wayto our homes?


6/20

How do heavy-duty railroads transport fragile

goods like fruits and vegetables across the

country and do so in an environmentally

responsible manner?

For CSX, one of the answers is Railex, a

unique cross-country service created through

a partnership between CSX and a western

railroad that links the specialized needs of

growers, shippers, and manufacturers with

retail and food service distribution centers

on the East and West Coasts. In addition to

fresh produce, Railex is used to transportfrozen foods, cosmetics, wine and beer,

and perishable concentrates and juices.

Railex features three refrigerated, mega-load

distribution centers in Delano, California;

Wallula, Washington; and Rotterdam, New York.

These coast-to-coast distribution centers run a

scheduled, five-day per week service featuring

a 55-car refrigerated unit train with a freight

capacity equivalent to hundreds of trucks.

With fast, reliable shipment of temperature-

sensitive products, Railex trains consist of

new 64-foot cars with fresh air exchange,

GPS tracking and temperature control. Railex

incorporates the latest technologies with itsown infrastructure and private non-stop rail

service to ensure timely service

and the same scheduled

departure day and time every

week, 52 weeks a year. All

55 cars stay intact as one

unit, so products are not

moved or shifted

throughout the

coast-to-coast journey, avoiding the use of

multiple rail yards and car handling.

If you are transporting goods the 2,700 miles

from Wallula, Washington to Rotterdam,

New York, for example, a single Railex train

can move approximately 4,125 tons of

goods, versus 21 tons that can be moved

by a typical truck.

By shipping perishables across the country

by rail as opposed to truck, Railex saves

approximately 524 tons of CO2 emissions

per trip the same amount of CO2that

is neutralized by more than 44,000 tree

seedlings growing for 10 years.

In addition to the ecological value of the

Railex service, West Coast growers are able

to meet the ever-changing needs of far-away

consumers with the freshest possible product

and generate higher returns.

The tricky challenge of transporting

perishable goods

As the most environmentally friendly

mode of ground-based transportation,

railroads are an important part of the

solution to a growing challenge facing

our nation. The U.S. Department of

Transportation estimates that freight

transportation demand will rise over

90 percent by 2035 that means morepressures on greenhouse gas emissions

and traffic. While there is no perfect

solution, rail offers the opportunity to

increase freight tonnage while reducing

greenhouse gas emissions and highway

congestion. Thats largely due to a

commitment by CSX and the industry to

continuous improvement and the inherent

efficiency of rail. Since 1980, railroads

have improved locomotive fuel efficiency

by more than 80 percent through

advances in technology and operations.

On their own, railroads excel at shipping

everything from automobiles to grain

but through the use of intermodal

transport as well as TRANSFLO services,

freight is easily moved between railroads

and trucks allowing for the most efficient

and flexible movement of goods.

TRANSFLO, a CSX subsidiaryspecializing in safely transferring products

such as ethanol, plastics and specialty

chemicals from railcar to truck, allows

for essential materials to be moved long

distances by freight railroads, enhancing

safety and reducing the greenhouse gas

emissions. Intermodal transportation is a

complex system of freight movement in

large containers by rail, ship, and truck.

The only things that get moved among

these modes of transportation are the

containers themselves the cargo insideis secured at origin and not touched until

final delivery of the container. This not

only reduces material handling, but it als

improves security, cuts damage and loss,

and transports goods faster at lower cost.

In addition to all of these benefits, the

portability provides energy savings and

significant reductions in carbon emissions

Freight railroads efficiently handle the

long-distance ground travel portion of th

route, quickly transferring containers to

and from ships and trucks at intermodal

terminals. The result is an unbeatable

combination of efficiency and flexibility.

One train can transport a ton of goods

more than 436 miles on a single gallon

of fuel. And one train can carry the

load of 280 trucks. That makes freight

trains the most efficient component of

the intermodal system, approximatelythree times more fuel efficient than

If 1% of freight currently moved by truck each year were moved by railinstead, we would save 110 million gallons of fuel and reduce greenhousegases by 1.2 million tons.

Its true


7/20

V O L . 1 N O . 1H O W T O M O R R O W M O V E S

and hazardous material

long-haul trucks. In addition to fuel and

emissions savings, moving freight by rail

reduces interstate highway traffic and wear

and tear on the roads, thereby reducing

highway maintenance costs.

CSX is a global industry leader in fuel efficienc

and many other aspects of freight transportatio

services. The company on average operates

1,300 trains and transports approximately

19,000 loads of goods per day over 21,000

route miles in 23 U.S. states, the District of

Columbia and two Canadian provinces.

A renewed commitmentSo just how is it that railroads, one of the

oldest modes of transport for moving goods

still in use, became the model of operational

and fuel efficiency that they are today? It

started with a renewed commitment to

continuous improvement.

Though trains have served as the workhorses

of American industry since the 19th century,

by the middle of the 20th century, due to

a number of changing circumstances, the

continued on page

Fruits and vegetables may be one

challenge, but what about the difficulty

of transporting hazardous materials

safely across the country?

Each year, CSX moves over 350,000

shipments of hazardous materials

volatile compounds necessary to create

the products consumers rely on every

day. Railroads are the safest mode

of ground transportation for these

sensitive products. In fact, trains are

10 times safer than alternate modesof transportation.

As a common carrier under U.S. law,

a railroad cannot choose the cargo that

it carries so a culture of safety is of

paramount importance. To further limit

the chances of an accident, CSX has

developed some of the most effective

programs in the rail industry, with a

strong commitment to continually

improve its safety record. In fact, CSX

is a leader among all major U.S. rail

carriers in train accident prevention.

To promote safety even further, CSX

annually recognizes major customers

who ship hazardous materials without

any releases during a year. The goal

is to honor those shippers who keep

their rail fleets well maintained andprovide safety training for their employees.

CSX also provides emergency planning

assistance and training to local fire, police,

and emergency response personnel in

communities served by its rail network.

Freight Train436 miles

Highway Truck140 miles

Boston, MA

Trenton, NJ

Baltimore, MD

How far can you move a tonof freight on a gallon of fuel?


8/20

industry had given up much of its

leadership, allowing equipment and

infrastructure to become outdated.

At the same time, the popularity of cars

and trucks had started to change the

landscape of the nation. Trucks could

move freight inexpensively over well-

maintained, newly constructed public

highways. As the trucking industry grew,

railroads, which bore the expense of

maintaining their own infrastructure,

struggled to compete. Adding to these

difficulties was a complex and outdated

system of federal regulations. With the

combination of outdated equipment,

new competition from interstate

highways and commercial air travel, and

a challenging regulatory environment,

many storied railroads were forced to

file for bankruptcy. It wasnt until the

passage of the Staggers Rail Act in 1980

that antitrust regulations were over-

hauled and brought more in line with

the modern transportation system.

This balanced regulation sparked a

revolution in efficiency and a new

commitment to improvement. The

surviving railroad companies began to

work overtime to upgrade equipment

and practices to become the safest,

cleanest and most efficient option that

they are today. Once again, railroads have

earned their place as an efficient option

for moving goods of all kinds and today

are creating new capacity to handle a

predicted 90 percent increase in freight

rail demand by 2035.

Growth and sustainabilityMore than anything, leading railroad

companies have seized the moment

balancing the challenging equation

of economic growth and sustainable

environmental stewardship by offering

dramatically improved fuel efficiency

and quality service at significantly

lower environmental impact.

CSX, for example, is leading the way

in utilizing new technology and systems

as well as creating strategic partnerships

that are fueling the greening of the

railroad industry.

Take the locomotive. CSX has invested

more than one billion dollars since

2000 to upgrade its fleet, retrofitting

existing locomotives to improve

efficiency and introducing new Tier I

and II clean air locomotives, which mee

the latest EPA emission requirements.The upgraded locomotives promise

to reduce emissions and lower fuel

consumption by nearly 10 million gallon

annually. To put that in perspective, 10

million gallons of fuel is enough energy

to power over 11,000 homes for a year.

H O W T O M O R R O W M O V E SV O L . 1 N O . 18

A single CSX train can carry the load of more than 280 trucksIts true


9/20

An important pit stopEven in a well-managed rail yard,

locomotives often must wait to transfer

cargo. Traditional locomotives, which

take a long time to start up and shut

down, often have to idle during these

down times. Reducing the time thatlocomotives idle at rail yards provides

another opportunity to cut emissions

and save fuel. CSX has train handling

rules for manual shutdown of locomotives

that have saved almost one million gallons

of fuel each year. To further help curb

emissions from idling locomotives, CSX

has embraced leading-edge technologies

including AESS (Automatic Engine Start

Stop) and the APU (Auxiliary Power

Unit). AESS automatically shuts down

an idle diesel engine while keeping the

locomotive ready to start on demand.

The Auxiliary Power Unit (APU),

which CSX designed, patented, and

made available to the industry, provides

power during idling conditions while

allowing the main engine to be shut

down. This innovative technology,

recognized by the EPA with a Clean

Air Excellence Award, reduces nitrogen

oxide emissions by 91 percent, hydro-

carbons by 95 percent, carbon monoxide

by 96 percent and particulate matter by84 percent while the engine is idling. The

projected fuel savings from 3,600 CSX

locomotives equipped with this and other

fuel savings technologies is estimated at

25 to 30 million gallons per year.

Leading the chargeNew and improved long-haul locomotives

as well as high-efficiency switching

locomotives, know as GenSets, are just

part of the story at CSX, where everyday

the focus is on delivering goods moresafely and efficiently to help preserve

our natural resources and reduce

greenhouse gas emissions. With its

commitment to continuous improvement,

the company will continue to keep pace

with new challenges and new demands

well into the future.


To compare carbon emissions easily online,

CSX launched an online Carbon Calculator.

Now shippers and others have the abilityto make the best environmental choice

among transportation options. The user-

friendly tool quickly calculates the carbon

dioxide (CO2) emissions savings of specific

rail shipments and provides comparative

data among transportation choices. The

Carbon Calculator can be accessed through

the companys web site, www.csx.com.

How Much CO2 Could YouBe Saving?

GenSet Locomotive, Chicago


10/20


Whats a freight

TRAIN?Thanks to new technology, this isnot your grandfathers locomotive.


11/20


At first glance, a freight train today

resembles one from ten years ago. But

if you look a little deeper, youll findplenty of new technology and complex

processes and procedures that are making

trains quieter, more energy efficient

and more environmentally friendly

than ever before.

Getting to cleaner airYou may not know it, but nearly all

locomotives in service use a large diesel

engine that drives a generator to produce

electricity. That electricity powers the

traction motors connected to the wheels.In order to minimize the amount of

CO2 emissions and fuel consumed,

CSX has introduced ultra-low emission

GenSet locomotives in multiple states

throughout its network including

Michigan, Illinois, New York, New

Jersey and Indiana.

Used primarily within rail yards to

switch cars, GenSet locomotives meet

and exceed all current EPA railroademission standards for locomotives and

achieve the most stringent noise level

requirements for off-road diesel

equipment. In contrast to existing

locomotives, GenSets can be started

as quickly as a truck engine, avoiding

the need to leave them idling for long

periods of time. As a result, they reduce

nitrous oxide and particulate matter

emissions by 80 percent and can create

carbon dioxide emissions savings of over

25 percent by monitoring engine idling

and switching to a sleep mode after a

period of inactivity.

With innovations like GenSet and the

Auxiliary Power Unit (APU), as well as

smart train handling, a gallon of fuel is

able to move a ton of freight almost twice

as far today as a gallon of fuel would have

20 years ago. For more information on an

APU, see Bringing it Home on page 5.

Extreme make-over the locomotive editionCSX has invested a great deal in

transforming freight locomotives.

The company designed, piloted and

implemented a horsepower reduction

program for over 100 locomotives,

which greatly reduced fuel consumption

and emissions.

When retrofitted in this way, a typical

locomotives horsepower is permanently

reduced by up to 27 percent without

compromising its ability to pull freight

As locomotives are moved around the

system and perform different jobs, the

horsepower requirements change. By

adjusting the locomotives horsepower

based on its use, the company realizes

significant savings. Projected over


12/20

five years, these reductions will save

an estimated 12.5 million gallons of

fuel and eliminate nearly 100,000 tons

of emissions, including nitrous oxides,

particulate matter, hydrocarbons and

carbon dioxide.

Improving operationalefficiency along the routeCSX has even developed an innovative

monitoring technology that helps improve

operational efficiency and reduce fuel

consumption as trains travel thousands

of miles of track carrying freight to

customers and distribution centers.

Known as ERAD (event recorder automatic

download), the monitoring system has

saved more than 13.5 million gallons of

fuel since 2005 and reduced nearly150,000 tons of CO2 emissions.

ERAD monitors locomotive operation

at a level of coverage unattainable by an

unaided supervisor. The system covers

150 wireless access points in 50 locations

across the CSX system. Because of the

frequency of feedback provided by

ERAD, fuel inefficient practices have

been reduced substantially throughout

the system, contributing to lower fuel

consumption overall.

A fuel burn analysis component of ERAD

is also being launched to capture the fuel

burned by the entire fleet. This data will

be used directly to identify fuel saving

opportunities, measure locomotive

operating fuel efficiency, and quantify

other fuel saving initiatives.

Moving more, using lessThe rail yard, where rail cars are processed,

offers a number of opportunities for furtherfuel savings. CSX initiatives have resulted

in better-managed rail yards and inter-

modal terminals, which mean marked

fuel savings for terminal operations,

increased capacity and a ripple effect

of energy efficiency improvements and

reduced emissions.

Technologies such as radio frequency

identification (RFID) better coordinate

the transfer of loads, improving freight

transfer times and drastically reducing

truck idling time. The less time a

driver has to wait to be told where the

container is, the less time the truck

engine is idling reducing CO2

emissions and fuel use. Future initiatives,

including rail-mounted cranes, promise

further improvements.

Small steps to big changeMeanwhile, many other technologies,

including renewable energy tools, are

being used to develop the next generation

of freight railroads. For example:

Solar panels have been installed on many

ballast cars that work across the network

to keep tracks in good working order.

These solar panels power the batteries tha

operate the bottom dump mechanism use

to install stone ballast in tracks, providing

energy savings and reducing waste.

Solar powered signals save energy,

providing a reliable alternate power sour

to this vital component of the system.

Solar powered hot water heaters

apply solar technology to heat the

water used at several CSX facilities, an

efficient way to use solar energy and

reduce fuel consumption.

Low-VOC paints are being used to

repaint locomotives. Low-VOC (volatile

organic compound) paints release fewer

and less harmful emissions than older pain

formulas, protecting the environment.

Proactive environmentalmanagementCSX doesnt limit its environmental

activities just to core transportation

systems. The company has also fine-

tuned its proactive Environmental

Management System to standardize

and guide all environmental actions

for all CSX facilities and rail hubs.

Part of this system includes a

comprehensive recycling program

through which CSX strives toward a goa

of zero waste. Recycled materials includ


In March 2007, CSX became the first

railroad to join the EPA Climate Leaders

Program, pledging to publicly report itsgreenhouse gas emissions and establish a

voluntary goal for emissions reduction.

The EPA estimates that for every ton-mile,

a locomotive emits roughly one-third

the nitrogen oxides and particulates of

alternate modes of transportation. That

means every time a customer diverts

freight traffic from highway to the railway,

they are taking steps to improve the

environment. In addition, the Association

of American Railroads (AAR) estimatesthat if just 10 percent of the nations

freight diverted to rail, fuel savings would

approach one billion gallons annually.

CSX also participates in the Carbon

Disclosure Project (CDP), a voluntary,

not-for-profit organization representing the

interests of 385 mostly institutional investors

with more than 57 trillion dollars in assets

under management. CDPs role is to, act

as an intermediary between shareholders

and corporations on all climate change-related issues, providing primary climate

change data from the worlds largest

corporations, to the global market place.

CSX achieved the best score among Class

freight railroads in the CDP 2008 Report

and third best in the overall Transports and

Logistics category.

On the record to reduce emissions


13/20


Steel scrap steel from old

locomotives, rail cars, rails and other

equipment is sent out for recycling.

Batteries spent batteries from

locomotive and signal operations

throughout the system are collected

and properly recycled.

Oil millions of gallons of engine

oil are recycled annually, including

a portion used as an alternative fuel

to heat CSX facilities.

Crossties three million are replaced

each year and recycled, used as an

alternative fuel source, or reused aslandscape timbers.

Land when necessary, property

owned by CSX is remediated, restored

and redeveloped. The company has also

remodeled, donated or sold unused rail

corridors to create public spaces andhiking trails. Two notable instances are

the much-celebrated High Line corridor

on the West Side of Manhattan, New

York, and the extension to the Pinellas

Trail in St. Petersburg, Florida, linking

downtown St. Petersburg with the

34-mile urban trail.

CSX is also committed to protecting

the nations streams, rivers, lakes, oceans

and groundwater supplies over and

above its commitments to meeting

Clean Water Act regulations througha host of initiatives:

Independent labs monitor water

discharged from facilities

Web-based computer programs are

used to monitor water flow and

quality throughout the network

Products are properly stored, used

and transported, preventing seepage

into groundwater supplies

The latest treatment technologies are

used to treat wastewater generated

from the maintenance and service

of locomotives and railcars

With nearly 200 wastewater facilities,

CSX is considered an industry leader,

having received numerous awards and

recognition by state agencies andindustry organizations.

0

100

200

300

1980 1990 2000 2007

400

500436

242

Average Ton-miles per Gallon of Fuel Consumed(RTM/gal is a Fuel Efficiency Measure Bigger is better)

A gallon of diesel fuelmoves a ton of freight bytrain 194 miles fartherthan it did 25 years ago.


14/20

An EvenClea


15/20


TomorrowerNational Gateway project

reflects a growing

commitment to the future

While CSX has had a long and distinguished

role in the development of American enterprise,

the future holds even greater promise, as the

company helps to strengthen freight railroads

capacity and also plays a leading role inforging environmental improvements.

These advances are being accomplished in many

ways not only through the implementation

of new technologies discussed on the preceding

pages, but also through groundbreaking

public-private partnerships.


16/20

A renewed commitmentto efficient infrastructuresystemsIn May of 2008, CSX launched the

National Gateway, an over 700 million

dollar public-private infrastructure

initiative to create a highly efficient,

double-stack cleared freight transportation

link between the Mid-Atlantic and

Midwest regions.

When completed, the National Gateway

will provide greater capacity for product

shipments between the Mid-Atlantic and

Midwest, reduce traffic on already

crowded highways, and create thousands

of jobs. By avoiding nearly 3 billion

truck miles, the National Gateway

will provide over 6 billion dollars in

public benefit, including nearlythree-million-ton reduction in CO2

emissions, more than 2.75 billion dollars

in shipping cost savings and a fuel

consumption reduction of over 250

million gallons over 10 years.

CSX has committed 350 million dollars

to the initiative, and is working closely

with state governments to secure

additional funding to realize the public

benefits. Already, several states have

committed funds in support of the

project funds which will help clear the

way for double-stack rail container service

along the National Gateway corridors

and assist in securing matching federal

funds needed to complete the project.

Intermodal transportation combines the

efficiency of rail with the flexibility of

trucks, says Michael J. Ward, Chairman,

President and Chief Executive Officer of

CSX. By hauling more freight on fewer

trains, the National Gateway would

reduce traffic on the nations crowded

highways and improve rail fluidity.

To create the National Gateway, CSX,

through its affiliates, is planning to

build or upgrade several high-capacity

intermodal terminals where product

shipments are exchanged between trucks

and trains. The company completed

a new terminal in Chambersburg,

Pennsylvania in late 2007 and plans to

build another terminal in Pittsburgh,

Pennsylvania. Existing terminals in

Charlotte, North Carolina, and Baltimor

Maryland, will also be expanded to meet

growing needs once the initiative is

implemented. Additionally, a new

intermodal terminal in Northwest

Ohio will be built by the Evansville

Western Railway, a CSX affiliate.

CSX is working closely with state and

federal government agencies to create

double-stack clearances beneath public

overpasses along the railroad. With

double-stack clearances, rail carriers

can stack intermodal containers on top

of each other, so trains can carry twice

as many containers per train as they

could otherwise.The National Gateway will enhance

three existing rail corridors that run

through Maryland, Virginia, North

Carolina, Pennsylvania, Ohio, West

Virginia and the District of Columbia.



17/20

Those corridors include:

The I-70/I-76 Corridor between Washington,

D.C. and northwest Ohio via Pittsburgh;

The I-95 Corridor between North Carolina

and Baltimore via Washington, D.C.;

The Carolina Corridor between Wilmington

and Charlotte, North Carolina.

The U.S. Department of Transportation

predicts that freight transportation demand

will rise over 90 percent by 2035 from 2002

levels. The National Gateway infrastructure

initiative is designed to address the ever-

increasing demands placed on the nations

capacity-strained freight network.

A study of the National Gateway project

by Cambridge Systematics, a nationally

recognized transportation research firm

based in Cambridge, Massachusetts, found

that every dollar of public money investedin the National Gateway infrastructure

initiative will lead to 16 dollars in public

benefits. The study noted that by improving

the flow of freight and shifting freight

transportation from the highway to the

railway, the initiative will improve safety,

relieve traffic, benefit the environment

and reduce highway maintenance costs.

A future with hybridlocomotives and

renewable energyMore efficient rail systems are one part of the

equation. The other is the ongoing effort to

improve the fuel efficiency of the locomotives

themselves. Significant improvements have

been achieved already, but like hybrid cars,

trains of the future may also embrace hybrid

technology and the use of renewable energy

like biofuels.


CSX is a charter member of the

U.S. EPAs SmartWay program,

a voluntary initiative designed to

reduce emissions of all mobile

sources, including locomotives.

SmartWay was launched in 2004

with a select group of 15 shipping

and business leaders, including

CSX. The program is an innovative,

market-based partnership to reduce

fuel use, greenhouse gas emissions,

and air pollutants from the freight

transportation sector. Based on their

three-year commitments, these

companies have conserved more

than 600 million gallons of diesel

fuel per year, saving the transport

industry nearly two billion dollars in

annual fuel costs and eliminating

nearly seven million metric tons of

carbon dioxide emissions.

In October 2007, CSX received the

EPAs SmartWay Excellence Award,

which recognizes freight carriers that

have made significant contributions

to protecting the environment.

CSX is the only railroad among the

SmartWay Transport Partnerships

600-plus members to receive this

distinction during that time period.

The smart way toreduce emissions

According to the EPA, freight railroads account for less than 3%

of U.S. greenhouse gas emissions from transportation sources and

well under 1% of greenhouse gas emissions from all sources.

Its true


18/20

Hybrid locomotives being researched

use a rechargeable energy storage system

that is placed between the power source

(often a diesel engine) and the traction

transmission system connected to the

wheels. Surplus energy from the

power source, or energy derived from

regenerative braking, charges the storage

system. During acceleration, stored energy

is directed to the transmission system,

boosting the energy available from the

main power source. For more information

on exciting improvements to trains, see

Whats a Freight Train? on page 10.

Leadership on the issuesCSX continues to support both federal

and state legislation to reduce greenhouse

gases and traffic congestion, and help

expand needed infrastructure programs

that stimulate the economy and

strengthen rails positive impact on the

environment. To advance these goals,

CSX supports:

Passage of the Freight Rail

Infrastructure Capacity Expansion Act,

which would provide a 25 percent tax

credit for any business investing in

new track, siding, intermodal facilities,locomotives or other rail infrastructure

expansion projects. This includes rail

shippers, ports, and even truckers who

might substitute rail for highway

moves. This bill has been supported

by a wide consortium of rail customers,

including the Waterfront Coalition,

the American Association of Port

Authorities, the National Retail

Federation, The National Mining

Association, the U.S. Chamber of

Commerce and the Alliance of

Automobile Manufacturers.

Expansion of public-private

partnerships that strengthen the

U.S. economy, create jobs, protect

our environment, meet the nations

energy needs, while maintaining and

expanding our nations infrastructure.

The National Gateway is a prime

example. CSX also believes that

climate change is a global issue

requiring leadership by the United

States and actions by all nations in a

spirit of shared responsibility to devise

and carry out practical, cost-effective

public-private measures that reduce

manmade greenhouse gas emissions.

Legislation that contains incentives

to use the least carbon-intensive

transportation options as well as

support investments in additional

new track, siding, facilities, clean

locomotives or other rail infrastructure

expansion projects.

The immediate adoption of climate

policies that promote sustainableapproaches to the global reduction

of greenhouse gas emissions and

recognize freight railroads significant

contribution to a cleaner environment

while preserving and enhancing the

economic prosperity and energy

security of the U.S. CSX values an

open dialogue with all stakeholders

on a wide array of options to further

policies that meet these objectives,

among them market-based incentivesa cap and trade system and carbon

taxes or fees.

Finally, CSX believes that rapid and

widespread research, development,

deployment and commercialization of

innovations in clean coal and other energ

technologies are vital to the success of

climate change and energy policies.

Moving transportation

forwardImproving the fuel efficiency of our vita

transportation systems and significantly

reducing greenhouse gas emissions are

two challenging and interrelated goals

that CSX has embraced wholeheartedly.

In fact, CSX has willingly taken on a

leadership role in this critical effort by

working hard on several key fronts

continually researching and developing

cutting-edge train and rail systems

technologies, upgrading and revitalizing

operations to reduce the use of fossil

fuels and recycle waste, collaborating

with government agencies and other

businesses to forge new and more

sustainable transportation approaches,

and supporting legislation and policies

that will encourage businesses to respon

more effectively to climate change.

With these and other ambitious

programs underway, CSX hopes to

have a strong, positive impact on

the environment we all share, while

continuing to contribute to the

smooth flow of our nations commerce

on which we all depend.



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The envelope pleaseCSX knows the difference that a sustaincommitment to improvement can makeThe company and its employees arehonored to have been recognized asleaders in environmental stewardshipwith these coveted awards:

The John H. Chafee Environmental Award

This honor has been awarded to a CSX

employee six of the last nine years.

U.S. EPA SmartWay Excellence Award CSX

received the award in 2007 and is the onlyrailroad among the SmartWay Transport

Partnerships 600-plus members to receive

this distinction.

The North American Environmental Employ

Excellence Award CSX employees have been

the recipient of this award four of the last

seven years.

U.S. EPA Clean Air Excellence Award CSX

received the award in 2001 for the design of

the Auxiliary Power Unit (APU).

CSX Transportation Rail Network


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