(CSX Chairman Michael Ward issued the following memo to CSX employees on August 2.)
Dear CSX Employees:
Today in Florida, Governor Jeb Bush and CSX Transportation announced the signing of an agreement in principle that would change CSXT traffic flows in Central Florida and allow for commuter rail operations in this fast growing and congested region. The State’s press release, posted on the Employee Gateway under News & Announcements, outlines the proposed plan, but I would like to make some additional points to you, our employees.
— First, this plan, while driven by the State’s commuter needs, is 100% compatible with our goals for growth in Florida and across the CSXT network. As you might know, we are in the process of adding rail capacity between Chicago and Florida, a state that is growing in population by 1,000 people daily and needs our services. The plan announced today will complement that expansion and meet future customer needs by providing for the building of sidings along our westernmost S-line to ensure smooth traffic flows in, out and through the State.
— Working in partnership with high-growth states, like Florida, to help them achieve their overall economic and infrastructure goals is smart business for CSXT. When states like Florida grow, their freight needs grow and we grow.
— Due to the increase in overall freight traffic and our own expansion plans in the State, we do not anticipate a reduction in employment levels in Florida as a result of this agreement. Some train crews may change assignments within Florida, and about 20 other employees may need to relocate. We will provide details about these changes as we get closer to implementation. We are also developing plans for an integrated logistics center in Winter Haven that will ultimately create significant economic activity among companies that build distribution facilities close to the ILC. The ILC development project does not depend on the plan announced by the Governor and CSXT today. However, the ILC is necessary if we are to relocate intermodal and automotive terminal operations out of Orlando.
— Finally, as the press release states, today’s announced agreement is in its early stages. Many issues have yet to be resolved even before specific designs are ready and construction begins. We would not anticipate any significant operational changes before 2009 at the earliest.
When and as significant developments occur, we will keep all employees informed.
Best Regards,
Michael Ward