Executive Speaker Series Luncheon June 19, 2012 LATC Mission - - PowerPoint PPT Presentation
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
"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."
LATC Membership Benefits:
Membership Dues help fund philanthropic efforts, which include local charities, scholarships and endowments
Covenant Transport Thursday, July 12, 2012 Monterey Hill Banquet Center
89th Annual Los Angeles Transportation Club Installation Gala
Friday, November 2, 2012 6:30 pm
2011 Expense – ($4,000) Current – ($0)
2011 Goal – $6,500 Current – $5,710
The Richard Hollingsworth Professional Development Scholarship
Vice President, Intermodal CSX Transportation
Los Angeles Transportation Club, June 19, 2012 Bill Clement, VP-Intermodal, CSX
1980 1985 1990 1995 2000 2005 2010
U.S. Intermodal Volume
Units in Millions
Source: Intermodal Association of North America
14.1M 3.1M Volume has increased more than four-fold
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increasingly challenged
– Declining truckload productivity due to highway congestion – Shrinking driver pool due to demographics and regulation – Greening of the supply chain and exposure to spikes in diesel prices
increasing thanks to investments Freight Market Value by Mode
67% 57% 11% 21% 2008 2035
Truck Intermodal
Source: 2009 Facts & Figures, USDOT/FHWA 2010.
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US Gross Domestic Product US Industrial Production
17 Source: Global Insight March 2012
2.9 2.2 9.3
CSX NS Opportunity
Addressable Eastern Freight Market
14 Million Units Freight volume for lengths
Sources: AAR CS-54 and Global Insight’s Transearch data
highway-to-rail
– Market through intermediate channel partners – Stimulate demand directly with Beneficial Cargo Owners
customer satisfaction
reliability and flexibility of service offerings
Market Strategy
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Intermodal Sectors
Domestic International
51% 49%
10% 9% 19%
RPU Volume Revenue
First Quarter Year-Over-Year Change
First Quarter Volume RPU $648 Volume 600K Revenue $389M
First Quarter
— Record domestic volume on continued truck conversions — Strong international growth driven by onboarding new Maersk traffic — RPU higher on positive mix, improved pricing and fuel recovery
Ongoing Drivers
— Strategic investments enhance growth and network operations — Growth driven by truck conversions and expanded service offerings
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– 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
International Volume
Year-Over-Year Growth
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U.S. Containerized Tonnage
TEUs in Millions CSX’s portfolio of international customers will grow with imports and exports in the U.S. Customer focus, service reliability and network enhancements will further generate new
CSX well positioned for Panama Canal
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21 Source: TTX, Piers/JOC, TranSystems 2011
– 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
Domestic Volume
Year-Over-Year Growth
Q1
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23 Single Terminal Markets Gateways: CHI, ESL, MEM and NOLA Multiple Terminal Markets
New England (BOS, SPR, WOR), Ohio (CIN, CLV, COL)
key markets
– Extensive network with over 600 service lanes – Ramp-to-Ramp and Door-to-Door products1 – Mexico service available via Passport
– Entering to new markets – Expand presence at Mexican gateways
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to support growth
– Over 30,000 53-foot dedicated containers – Expansion into new markets
transcon service in both directions
– Committed pricing – Expansion to other markets
Customer Assistance Planning Service Show up when you told us you would If you can’t, tell us in advance Improve our customer service experience CSX is an extension of our company Satisfaction Drivers Voice of the Customer
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Channel Strategy
BCO Education
National Accounts T eam
Network Design
& Spoke
Service Reliability
Competitive Service
Speed
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Montreal Charlotte Detroit
New Terminals Expansions
Columbus Pittsburgh
Worcester Winter Haven
sizeable growth capacity
key markets
corridors to capitalize on efficiency of rail
containers to support continued H2R conversions
1,500-2,000
Lifts per Day
75-100
Units Gated per Day
27 per day
Trains Processed
30 minutes
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West Coast through-trains bypass Chicago, saving one day of transcontinental transit Congestion reduced in Chicago, Cleveland, and Syracuse Over 50 new service lanes generating 50K+ loads in 2012 On-time availability improved by greater than 10% in several high- volume lanes
Customer Focus Expanding service offerings to meet needs
Service Reliability Creating truck-competitive service to profitably convert over-the-road freight Network Capabilities Making infrastructure improvements to support customer growth and network reach
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