Letter to Michael Ward, President and CEO CSX Corporation

Letter

Michael J. Ward
Chairman, President and CEO
CSX Corporation
500 Water Street, 15th Floor
Jacksonville, FL 32202

Dear Mr. Ward:

We are writing to express our concern about reports that CSX Transportation is considering a proposal to downsize or terminate its operation of the Frontier Yard in Buffalo.

As you know, the CSX Frontier Yard employs over 400 Western New Yorkers. The loss of those jobs in the current economy would be devastating to the families of those employees and would place further stress on the already humbled regional economy. Further, cessation of operations at Frontier Yard would eliminate an infrastructure asset that is important to Buffalo's future economic competitiveness relative to other communities in the region. For these reasons, the termination of operations at Frontier Yard can not be allowed to happen.

We acknowledge that freight rail traffic is down as the American economy has slowed dramatically and the demand for goods has decreased. However, we submit that it would be foolhardy for CSX to abandon this facility given its strategic geographic proximity to Southern Ontario, one of the most prosperous and fastest-growing regions in North America. The majority of Canada's population lives in Southern Ontario, and the population of Golden Horseshoe area (Buffalo to Toronto) alone is expected to grow by 3.7 million to 11.5 million by 2031. We urge CSX to consider that, given the cyclical nature of the economy, freight rail demand will increase and when it does the company will want to have facilities able to service this important market.

We also note that, in the context of CSX's ultimately successful purchase of roughly ½ the assets of Conrail in 1998, the company made assurances to the Surface Transportation Board (STB) that rates would be reduced and service improved for users in Western New York. If CSX terminates the Frontier Yard, it is difficult to see how this would have the effect of improving rail service for Western New York, and consequently such action may represent an abrogation of agreements entered into with the STB.

We understand the economic pressures that CSX Transportation, like the great majority of American companies, is under at present. However we believe the continued operation of Frontier Yard is vital to the future of the freight rail industry in Western New York, a prospect in which CSX shares a sizable stake as well. We look forward to working with you to avoid what we believe would be an ill-advised and shortsighted action on this matter.

Sincerely,
Brian Higgins Charles Schumer
Member of Congress Senator

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