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LOUISVILLE & INDIANA RAILROAD AND CSX CLOSE ON JOINT INFRASTRUCTURE UPGRADE PROJECT BETWEEN INDIANAPOLIS AND LOUISVILLE


$100 million infrastructure investment to improve regional freight flows and global connectivity

CHICAGO, Ill. and JACKSONVILLE, Fla. – June 19, 2015 – Louisville & Indiana Railroad (L&I), a subsidiary of Anacostia Rail Holdings, and CSX today announced the completion of an agreement that grants CSX a permanent easement to operate over the L&I’s 106-mile rail corridor between Indianapolis and Louisville.

In addition to CSX’s $10 million easement purchase, the two companies finalized an operating agreement that provides for an additional $90 million in infrastructure upgrades over the next several years to improve the track structure and right of way along this key freight route. The joint project, which closed on June 17, 2015, was approved by the U.S. Surface Transportation Board in April.

“CSX’s investment of approximately $100 million will provide enhanced rail access for the Port of Indiana-Jeffersonville, increase capacity and efficiency along this corridor and improve connectivity to CSX’s broader network,” said Oscar Munoz, president and chief operating officer, CSX Corporation. “These critical infrastructure improvements include the installation of new rail, upgrades to the rail bed structure and bridge improvements to enhance safety and service for customers in the Midwest and provide more efficient rail service throughout the region.”

Over the next several months, 20 miles of new rail will be installed along the southern portion of the line. In recognition of the potential impact on local communities during and after construction, representatives from both railroads in May began a series of joint meetings with community leaders to provide project status updates and to address concerns related to public safety, anticipated increases in freight volume and construction plans.

“Since 2011, both L&I and CSX have coordinated with state and local officials to discuss the upgrade of the line to support manufacturers, farmers, marine ports and other contributors to the area’s economic growth,” said John Goldman, president, Louisville & Indiana Railroad. “As we undertake the first phase of construction, we will continue to collaborate with local officials to plan and execute construction activities to minimize disruptions to communities along the corridor.”

About L&I
The Louisville & Indiana Railroad is based in Jeffersonville, Indiana and has approximately 40 employees. L&I acquired its 106-mile line from Consolidated Rail Corporation and began operations in 1994. The railroad operates a former main line of the Pennsylvania Railroad.

About Anacostia Rail Holdings
Anacostia Rail Holdings (www.anacostia.com) is a short line railroad holding company. Its railroads operate in seven states and, in addition to L&I, include the Chicago South Shore & South Bend Railroad, Gulf Coast Switching Company, New York & Atlantic Railway, Northern Lines Railway, LLC and Pacific Harbor Line, Inc.

About CSX
CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products. For nearly 190 years, CSX has played a critical role in the nation’s economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation’s population resides. It also links more than 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike. More information about CSX Corporation and its subsidiaries is available at www.csx.com. Like us on Facebook (http://www.facebook.com/OfficialCSX) and follow us on Twitter (http://twitter.com/CSX).

Contacts:

Anacostia Rail Holdings
Peter Gilbertson, Chairman and CEO
312-324-7350

CSX
Kristin Seay, CSX Corporate Communications
404-350-5029