STB UPDATE

OCTOBER 31, 2017

2

Network performance levels consistent

Dwell further improved and velocity steady

Right Car Right Train moving higher

Crew and power resource levels remain well matched to demand

Hump yard performance steady, four humps remaining

Western terminals performing well

Empty car fulfillment remained near 80%1

Local pull and place performance stable

Customer problem logs remain at lower levels

Interchange volumes current and gateways fluid

Highlights

Dwell reaches new measurement-period low of 10.4 hours

Customer problem logs remain near lowest level in measurement period and in normal range

1 Normalized fill rate

15.6

15.1

15.1

14.9

14.4

14.4

14.6

9.4 10

.1

12.1

11.1

10.5

10.3

9.5

Dwell and velocity performance at or better than 2016 levels

3Note: Dwell and velocity displayed according to CSX methodology; explanation of CSX methodology can be found in appendix. Q3 dwell and velocity exclude the Hurricane Irma-impacted period for terminals that held cars and specific trains held through storm, respectively.

Velocity (mph)

61%

62%

67%

70%

64%

58%

60%71

%

68%

72%

75%

75%

74%

73%

14.914.2

16.2

14.0

15.7 15.414.9

10.0

12.0

14.0

16.0

18.0

2016 Q1 Q2 Q3 40 41 42

On Time Originations (%)

Dwell (hours)

68% 64%

81%

60%70% 64% 63%

0%

20%

40%

60%

80%

100%

2016 Q1 Q2 Q3 40 41 42

On Time Arrivals (%)

On-Time

+2 hrs

On-Time

+2 hrs

11.2 11.610.8

12.110.7 11.0 10.5

6.0

8.0

10.0

12.0

14.0

16.0

2016 Q1 Q2 Q3 40 41 42

84% 81%88%

74% 74% 73% 74%

0%

20%

40%

60%

80%

100%

2016 Q1 Q2 Q3 40 41 42

Weekly Average

Oct. 21 – Oct. 27 Oct. 21 – Oct. 27

Oct. 21 – Oct. 27 Oct. 21 – Oct. 27Weeks

Weeks Weeks

Weeks2017

2017 2017

2017

86% 86%

82%

73%75% 76% 76%

50%

55%

60%

65%

70%

75%

80%

85%

90%

2016 Q1 Q2 Q3 40 41 42Weeks

75%

73%

77%

75%

78%

79% 80%

Oct. 21 – Oct. 27

Right Car Right Train moving higher; less relevant in PSR

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 precision scheduled railroading (PSR), 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 PSR

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

9,771

9,223

9,690

9,445

9,278 9,264 9,247 9,225

0%1%2%3%4%5%6%7%8%9%10%

8,900

9,100

9,300

9,500

9,700

9,900

2016 Q1 Q2 Q3 40 41 42 43

5

Resourcing appropriately to meet business needs

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

Train & Engine Headcount and Re-crew Rate1Active Locomotives

3,673 3,763

3,376 3,200 3,182 3,184 3,162 3,165

2,000

2,400

2,800

3,200

3,600

4,000

2016 Q1 Q2 Q3 40 41 42 43

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 stable; engines in place to support grain harvest season

Re-crew rates remain at historic lows and stable

2017 Weeks 2017 Weeks

19.2

22.5

23.1

22.3

20.5

18.6

18.419.9 20.6

17.2

19.8 17.7

18.8 18.7

8.0

12.0

16.0

20.0

24.0

28.0

2016 Q1 Q2 Q3 40 41 42

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 in appendix. Q3 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

Oct. 21 – Oct. 27

Weekly Average

Weeks2017

Total hump yard volumes remain in a consistent band week-over-week, well below capacity of yards― Willard removed from current and future weeks’ data,

transitioned to a flat switching operation in prior week

Key hump productivity and efficiency measures performing well

10.6 12

.3

12.9

10.6 12

.5

11.2

9.6

13.0 13.6 13.4

15.6

12.614.4

12.1

6.0

10.0

14.0

18.0

22.0

2016 Q1 Q2 Q3 40 41 42

Key terminal productivity and performance measures recovered in former “trouble” spots

― Dwell improved further this week, and remains below 2016

Train plan adjustments have recovered service― Leveraged Avon as offset of increased volume flow through

Russell, Columbus and Louisville

7

Western terminals performing well

Western Corridor Key Terminals

Birmingham, AL

Nashville, TN

Avon, IN

Evansville, IN

Montgomery, AL

Mobile, AL

Western terminals

1 Dwell displayed according to CSX methodology; explanation of CSX methodology can be found in appendix. Q3 dwell excludes the Hurricane Irma-impacted period for terminals that held cars through the storm.

Weekly Average

Dwell at Western Terminals1

Oct. 21 – Oct. 27Weeks2017

8

Car order fulfillment stable near 80%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

2,000

3,000

4,000

5,000

6,000

7,000

2016 Q1 Q2 Q3 40 41 42 43

Weekly Orders Normalized Order Fill %

Weekly Car Orders and Normalized Fill Rate1

Q1 Avg. Weekly Car Orders

Cars Ordered

Normalized Fill Rate

1 Normalized fill rate is a proxy of demand fulfillment against historical/expected order levels, as current order levels are disconnected with demand

Empty car dwell remains elevated at customer locations

― Indicates improved car supply and availability― Customers maintaining buffer stock, which

elongates total asset turn times

Improvements to car ordering process being introduced

― Intended to improve accountability in ordering and fulfillment to better capture demand in a timely manner

― Active communication underway and to continue over coming weeks to ensure customer understanding/alignment

2017 Weeks

9

Last mile performance stable

Local Service Measurement1

94% 95%90%

81% 84% 83% 85% 85%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 Q1 Q2 Q3 40 41 42 43

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

Local Service Measurement (LSM) is no longer a metric that CSX uses to manage its operation― In precision scheduled railroading (PSR), focus on end-

to-end transit and customer expectations― Last mile performance must be in combination with, not

independent of, overall performance

Accordingly, LSM as a reported metric was discontinued upon start of PSR implementation― At request of STB, last mile tracking reinstated to

monitor through implementation period― Data reflects passive information flow, lacking prior

focus on field reporting to ensure LSM capture

Reliable pull and place expected as part of service to customers

2017 Weeks

10

Customer problem logs remained at lower levels

354 368

286

374

458

570 563537

567

499

374

281330

294272 265 278

247 253

25 27 29 31 33 35 37 39 41 43Weeks

Delayed Cars Bad Order Switching Issues

Customer InquiriesDaily Average Log Volume

Delayed cars have returned to normal levels (<1% of traffic)― Trend in problem logs mirrors timeframe of network

challenges and recovery, followed by Hurricane Irma― Lower levels of long-dwelling cars reflects overall fluidity

improvements

Lower level of logs, improved communication allowing faster, more comprehensive resolution ― Managing pipeline of customer concerns to full resolution

Interchanges current and performing to expectations

0

200

400

600

800

2016 Q1 Q2 Q3 40 41 42 43

East St. LouisDaily Average Interchange Volume

From To

0

200

400

600

2016 Q1 Q2 Q3 40 41 42 43

New OrleansDaily Average Interchange Volume

0

400

800

1,200

1,600

2,000

2016 Q1 Q2 Q3 40 41 42 43

Chicago Daily Average Interchange Volume

0

100

200

300

2016 Q1 Q2 Q3 40 41 42 43

MemphisDaily Average Interchange Volume

11

2017 Weeks

2017 Weeks 2017 Weeks

2017 Weeks

12

Precision 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&

Realigned service frequency in second quarter

Set the groundwork of a balanced train plan in early July

Terminals’ improved efficiency and traffic flow adjustments have recovered service

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

APPENDIX

14

Velocity

Former Line of road miles per hour

CurrentTotal miles traveled per hour, including intermediate dwell of the train

ChangeReason

Includes full trip of a train and ability to diagnose overall speed profile (in support of improvement in asset cycle)

Effect onMetric Reported velocity will be lower

CSX has changed methodology on some metrics reported publicly

Dwell

Former Car time at terminal, excluding cars on the same train ID

CurrentAll car time with a terminal work event, including through cars on same train ID (e.g. crew change)

ChangeReason

Includes all dwell with ability to diagnose all events impacting car movement (in support of improvement in asset cycle)

Effect on Metric Reported dwell will be lower

Restated historical data in new methodology available on csx.com/servicemetrics

Cars Online

Former All cars on CSX, as determinedby RailInc

Current

RailInc cars on CSX, excluding cars stored, under repair, sold, and private cars ex online inventory

ChangeReason

More accurate measurement of active cars on line, i.e. cars for which CSX is focused on real-time, efficient movement

Effect on Metric

Reported cars online will be lower