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CSX Transportation Pleased with STB's Duke Decision

2/4/2004 12:02:00 AM
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Jacksonville, Fla.

CSX Transportation Inc. (CSXT) is pleased with the findings of the Surface Transportation Board (STB), upholding CSXT's tariff rates charged to Duke Energy Corporation for rail shipments of coal to three Duke power plants served by CSXT.

The STB's decision in the case brought by Duke (Finance Docket No. 42070) is posted on the Board's web site at www.stb.dot.gov under "Decisions & Notices."

"The Board's decision supports our position that CSXT established fair rates for Duke," said Christopher Jenkins, vice president - coal and auto service group. "We regret that Duke chose to cancel its transportation contract with CSXT so that it could bring a costly, long case to the Board. After reviewing all the evidence, the Board found that the tariff rates established by CSXT are lawful and fairly reflect the cost of CSXT"s service.

"While we are pleased with the result of this case, at the same time, we have always been willing to negotiate private contracts that provide discounts in exchange for considerations such as volume commitments," Jenkins said.

The decision found that the railroad had demonstrated successfully that the capital and operating costs to move coal from source mines in the Appalachian Mountains to Duke's plants amply justified the challenged rates.

"CSXT continues to deliver tremendous value," Jenkins said. "To do that, we must be able to recover the significant costs of maintaining and operating essential rail infrastructure while re-investing in our capital-intensive business. We look forward to continuing to work closely with Duke to serve its plants safely, reliably and efficiently."
CSX Corporation, based in Jacksonville, Fla., owns the largest rail network in the eastern 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.

This press release and other statements by the Company contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, cost-savings, expenses, or other financial items; statements of management's plans, strategies and objectives for future operation, and management's expectations as to future performance and operations and the time by which objectives will be achieved; statements concerning proposed new products and services; and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "project," and similar expressions. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement. If the Company does update any forward-looking statement, no inference should be drawn that the Company will make additional updates with respect to that statement or any other forward-looking statements.

Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by these forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by these forward-looking statements include, among others: (i) the Company's success in implementing its financial and operational initiatives, (ii) changes in domestic or international economic or business conditions, including those affecting the rail industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; and (iv) the outcome of claims and litigation involving or affecting the Company. Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the Company's SEC reports, accessible on the SEC's website at www.sec.gov and the Company's website at www.csx.com.

Gary Sease