STB UPDATE

JANUARY 23, 2018

2

Network continued to perform at high levels

Dwell improved, velocity remained healthy following record prior week

Right Car Right Train lower week-over-week

Crew and power resource levels well matched to demand

Hump yard performance steady

Western terminals performing well

Car fulfillment settled higher, averaging 97% year-to-date

Local pull and place performance stable

Customer problem logs at normal levels

Interchange volumes current and gateways fluid

Network continues to perform well through widespread extreme cold temperatures and snow

15.1

18.018.7

17.3

17.7

18.0

17.9

17.9

17.5

17.4

10.0

12.0

14.0

16.0

18.0

20.0

22.0

11.3 11.5 10.8

9.0

10.8 11

.9

11.0 11.5

10.9

10.2

6.0

8.0

10.0

12.0

14.0

16.0

18.0

3Note: Dwell and velocity displayed according to CSX methodology; explanation of CSX methodology can be found at csx.com/servicemetrics. 2017 dwell and velocity exclude the Hurricane Irma-impacted period for terminals that held cars and specific trains held through storm, respectively.

Velocity (mph)

69% 73%78%

65% 70

%

72%

69%

67%

66%

67%

20%

40%

60%

80%

100%80% 81% 84%

76%

76% 81

%

83%

80%

82%

82%

20%

40%

60%

80%

100%

On Time Originations (%)

Dwell (hours)

On Time Arrivals (%)

On-Time

+2 hrs

On-Time

+2 hrs

Weekly Average

Jan. 13 – Jan. 192017

Jan. 13 – Jan. 192017 Jan. 13 – Jan. 192017

2017 Jan. 13 – Jan. 191 1

1 1Weeks

Weeks Weeks

Weeks

Dwell improved, velocity remained healthy following record prior week

2 2

2 2

79%

75%77%

72%

67%

66%

72% 73

%

71% 73

%50%

55%

60%

65%

70%

75%

80%

85%

90%

Jan. 13 – Jan. 19

Right Car Right Train lower week-over-week

4

Right Car Right Train1

1 ‘Right Car Right Train’ is defined as the percentage of cars that departed from a yard in accordance with their car scheduling trip plan

Right Car Right Train is no longer a measure that CSX uses to manage its operation― In scheduled railroading, if a car can be advanced on

another train to speed transit or ensure its on-time arrival, there is not one “right train”

Car priority is to move cars quickly, on next available train― Asset utilization a key tenet of scheduled railroading

Train priority is blocking integrity and departing all available, relevant cars from the yard― Blocking integrity certifies that a train is built correctly

and shipments are headed to the correct location― Managed through field supervision

Weekly Average

2017 1Weeks

2

9,365

8,760 8,680 8,612

0%

2%

4%

6%

8%

10%

12%

7,000

7,400

7,800

8,200

8,600

9,000

9,400

9,800

2017 1 2 3 4 5 6

3,368

3,025 2,979 2,881

1,800

2,200

2,600

3,000

3,400

3,800

2017 1 2 3 4 5 6

5

Resourcing appropriately to meet business needs

Power and crew availability steady at approximately 99% and 95%, respectively

Train & Engine Headcount and Re-crew Rate1Active Locomotives

1 Re-crew rate is re-crew people starts as a percent of total measured people starts, and represents incidences of replacing a crew on the same train ID (generally due to hours of service)

Locomotive level coming down in concert with network velocity improvement

Recent headcount decline driven by train staffing efficiency and adjustments to extra boards

2018 Weeks2018 Weeks

6

Hump yard performance steady

CSX Hump Terminal Overview

Transitioned to flat-switching operations

Hump terminals

Selkirk, NY

Cumberland, MD

Hamlet, NC

Waycross, GA

Atlanta, GABirmingham, AL

Nashville, TN

Louisville, KY

Avon, IN

Cincinnati, OH

Willard, OH

Toledo, OH

1 Dwell displayed according to CSX methodology; explanation of CSX methodology can be found at csx.com/servicemetrics. 2017 dwell excludes the Hurricane Irma-impacted period for terminals that held cars through the storm.

Absolute number of humps not “good” or “bad”; goal is best mix of hump and flat yards for processing efficiency

Dwell at Hump Terminals1

Key hump productivity and efficiency measures performing well

Total hump yard volumes back to normal levels after holiday, remain well below capacity of yards

20.919.6 19.2 20

.3 21.8 23

.9

21.2 22

.9

22.9

21.5

6.0

10.0

14.0

18.0

22.0

26.0

30.0Weekly Average

Jan. 13 – Jan. 192017 1Weeks

2

14.9

11.5 11.0

12.9 14

.6

14.4

11.4

13.9

17.1

12.2

6.0

10.0

14.0

18.0

22.0

Key terminal productivity and performance measures healthy, dwell remains well below 2017

7

Western terminals performing well

Western Corridor Key Terminals

Birmingham, AL

Nashville, TN

Avon, IN

Montgomery, AL

Mobile, AL

Key Western terminals

1 Dwell displayed according to CSX methodology; explanation of CSX methodology can be found at csx.com/servicemetrics. 2017 dwell excludes the Hurricane Irma-impacted period for terminals that held cars through the storm.

Weekly Average

Dwell at Western Terminals1

Jan. 13 – Jan. 192017 1Weeks

2

50%

60%

70%

80%

90%

100%

110%

0

1,000

2,000

3,000

4,000

5,000

6,000

2017 1 2 3 4 5 6

Weekly Orders Customer Empty Idles (> 24 hours) 2017 Blended Fill % Order Fill %

8

Car fulfillment settled higher, averaging 97% year-to-date

Weekly Car Orders, Customer Empty Idles, and Fill Rate1

Cars Ordered/Idle

Order Fill Rates

Over 300 orders filled in week 3 against week 2 open orders, increasing fill to 101%

― Car flows fully recovered following holiday

Empty car dwell remains elevated at customer locations

― Empty idle cars at a given customer held >24 hours considered available to fill that customer’s orders

2018 Weeks

1 2017 orders and fill rate normalized for Weeks 14-44 against historical/expected order levels (Q1 2017), as orders were disconnected with demand; starting week 45, improved process leaves orders open for two weeks, counts empty idle cars > 24 hours at a customer location as a filled order for that day

9

Last mile performance measure stable

Local Service Measurement1

87%

74%

86% 86%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2017 1 2 3 4 5 6

1 ‘Local Service Measurement’ is defined as the percentage of cars that were pulled or placed at a customer location based upon daily customer request, the local service plan and available inventory at the local serving yard

2018 Weeks

Local Service Measurement (LSM) is not a primary metric that CSX uses to manage its operation

― In scheduled railroading, focus on end-to-end transit and customer expectations

However, reliable pull and place expected as part of service to customers

10

Customer problem logs remained at normal levels

Customer InquiriesDaily Average Log Volume

Improved communication allowing for faster, more local resolution

― Accountability for resolution of customer issues resides with field responsibility

― Escalating and resolving critical issues with senior leadership

Enhancing key customer tools and aligning workstreams to allow for easier, more direct connections

570 Total Logs in Week 30 2017 at height of service challenges

2018 Weeks

284223

271252

2017 1 2 3 4 5 6

Delayed Cars Bad Order Switching Issues

Interchanges current and performing to expectations

0

200

400

600

800

2017 1 2 3 4 5 6

East St. LouisDaily Average Interchange Volume

0

200

400

600

2017 1 2 3 4 5 6

New OrleansDaily Average Interchange Volume

0

400

800

1,200

1,600

2,000

2017 1 2 3 4 5 6

Chicago Daily Average Interchange Volume

0

100

200

300

2017 1 2 3 4 5 6

MemphisDaily Average Interchange Volume

11

2018 Weeks

2018 Weeks 2018 Weeks

2018 Weeks

12

Scheduled railroading producing service improvement

ImproveService

OperateSafely

ControlCosts

Drive AssetUtilization

DevelopPeople

Operational Focus

TerminalFluidity

BalancedTrain Plan

Service Improvements

Rolling StockUtilization

PeopleEfficiency

FuelOptimization

TrainDensity

ImprovedFrequency

BetterReliability

FasterTransit

QuickerTurnaround

Productivity Improvements&

Accomplishments in 2017: realigned service frequency, balanced train plan, improved terminal efficiency

Improved execution on this foundation to drive long-term service and productivity improvements