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Presentation to AASHTO SCORT Kevin Soucie CN Government Affairs September 21, 2009

The Freight Rail Expectations Regarding Implementation of Passenger Rail. Presentation to AASHTO SCORT Kevin Soucie CN Government Affairs September 21, 2009. CN Network and EJ&E Lines. EJ&E. Be prepared to discuss. Safety Capacity/Infrastructure Service to Customers – Present & Future

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Presentation to AASHTO SCORT Kevin Soucie CN Government Affairs September 21, 2009

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  1. The Freight Rail Expectations Regarding Implementation of Passenger Rail Presentation to AASHTO SCORT Kevin Soucie CN Government Affairs September 21, 2009

  2. CN Network and EJ&E Lines

  3. EJ&E

  4. Be prepared to discuss • Safety • Capacity/Infrastructure • Service to Customers – Present & Future • Compensation - ROI • Liability

  5. U.S. Freight Transportation Ton-Miles Revenue Pipe 2% Pipe 17% Rail 10% Air 7% Water 1% Air 1% Rail 42% Truck 28% Truck 80% Water 12% Source: Eno Transportation Foundation

  6. Average U.S. Freight Rail Rates* Are the Lowest in the World Index U.S. = 100 *Adjusted for purchasing power parity. Data are 2005. Source: World Bank

  7. RRs Are Safer Than Other Industries Cases With Days Away From Work, Job Transfer, or Restriction Per 100 Full-Time Workers - 2006 Air Transp. Grocery Stores All Private Industry Inland Water Constr. Source: U.S. Bureau of Labor Statistics

  8. Railroads are Safe and Getting Safer(Index 1980=100) Grade crossing collisions Employee injuries & illnesses Train accidents *2007 is preliminary Source: FRA

  9. Freight Trains Save Energy Gallons of Fuel Consumed Hauling One Ton of Freight Coast-to-Coast Trains: 7 gallons Trucks: 27 gallons

  10. U.S. Greenhouse Gas Emissions by Source: 2006 Trucking5.7% Non-transportation 72.4% Freight RRs - 0.7% Other freight transport 1.2% Passenger transport* 20.0% *On-road vehicles, aircraft, recreational boats, passenger rail Source: EPA

  11. RRs Have Far Higher Capital Intensity Than Most Other Industries Capital Expenditures as a % of Revenue: Avg. 1997-2006 Class I RRs Computers Avg. All Mfg. Wood Prod. Petrol. & Coal Prod. Plastics Nonmet. Minerals Paper Food Chemicals Motor Vehicles Sources: U.S. Census Bureau, AAR

  12. The Staggers Act Led to the Rail Industry’s Transformation (Index 1981 = 100) Productivity Volume Staggers Act Passed Oct. 1980 Revenue Price Source: AAR

  13. Be prepared to discuss • Safety • Capacity/Infrastructure • Service to Customers – Present & Future • Compensation - ROI • Liability

  14. Other challenges to consider Positive Train Control New Regulation

  15. The Freight Rail Expectations Regarding Implementation of Passenger Rail Presentation to AASHTO SCORT Kevin Soucie CN Government Affairs September 21, 2009

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