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CSX Transportation Inaugurates EthX

3/16/2004 12:03:00 AM
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Jacksonville, Fla.


CSX Transportation (CSXT), the rail unit of CSX Corporation (NYSE:CSX), today announced the onset of regular ethanol rail- to-vessel service linking ethanol producers in the Midwest with consumers in the Northeast.

The CSXT Ethanol Express Delivery, known as "EthX," moves large quantities of ethanol on unit trains from points throughout the Midwest to Albany, N. Y. From Albany, the fuel is moved by barge down the Hudson River for use by consumers in New York and New England markets. The barge operations transporting ethanol from Albany to market use existing barge capacity, minimizing additional logistics costs for businesses and consumers.

"With the growing demand for ethanol in the Northeast, and a lack of pipeline infrastructure from the Midwest, CSXT set out to fill the distribution void by building a virtual pipeline," said David Kennedy, manager-Business Development for CSXT's Agricultural Products Group. Just last week, for example, the tank barge "Westchester" made its way north from Philadelphia, making gasoline deliveries in Newburgh and Albany, N.Y., via the Hudson River, prior to taking on a rail-delivered load of ethanol in Albany for the backhaul transit south. "The loading and efficient utilization of the 65,000 barrel Westchester is an example of the innovative rail service CSXT is delivering to new markets and companies that have not traditionally used rail," said Kennedy.

"Aventine Renewable Energy, Inc., one of the largest marketers of renewable fuels, is proud of its leadership role in being the first ethanol supplier to commit to and ship ethanol to the East Coast via CSXT's ethanol network," said Jim Redding, Aventine's vice president-Marketing.

The inaugural ethanol shipments arrived in Albany earlier in the year and were produced by VeraSun Energy of Aurora, S.D. VeraSun's plant opened and began production just three weeks prior to the first shipments. "VeraSun Energy is pleased to be participating in CSXT's EthX program," said Sales and Marketing Vice President Bill Honnef. "The efficiencies and expansion in the production and distribution of ethanol are a clear sign that ethanol is growing into a strategic nationwide blending component." Honnef said that VeraSun's new plant is capable of producing 100 million gallons of ethanol per year, the equivalent of nearly 25 percent of the total volume of ethanol projected to be consumed in the Northeast in 2004.

"The Renewable Fuels Association (RFA) commends CSXT for establishing and investing its capital resources in this program," said RFA President and CEO Bob Dinneen. "It is acting as a true partner with the ethanol industry to facilitate the movement of ethanol from the Midwest to the Northeast. Because of efforts like this, ethanol is efficiently flowing to the Northeast to benefit ethanol and oil companies, but most importantly, the gasoline consumer."

CSX Corporation, based in Jacksonville, Fla., owns one of the largest rail networks in the United States. CSX Transportation Inc., and its 34,000 employees provide rail transportation services over a 23,000 route-mile network in 23 states, the District of Columbia and two Canadian provinces. CSX Corporation also provides intermodal and global container terminal operations through other subsidiaries.



CSXT: Dan Murphy
(904) 359-1469
Avertine: Jim Redding
(309) 347-9310