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National Gateway a Public-Private Partnership in Progress By Tony Seideman It’s one of the most difficult times in history to secure funds. But that hasn’t stopped CSX Corp.’s aggressive efforts to acquire the monies necessary to create a double-stack train route that will run through Maryland, North Carolina, Ohio, Pennsylvania, Virginia, and West Virginia — linking three mid-Atlantic ports with Midwestern markets. In May, 2008, CSX unveiled a public-private partnership (PPP), called the National Gateway (www.NationalGateway.org). To complete the Gateway, tracks, bridges, and tunnels will need upgrading, and several intermodal terminals will need to be expanded or constructed. CSX (the private piece of the PPP) will be paying for the freight terminals along the route, says Mick Sears, spokesman for the company. “And we’re asking the public entities — through a combination of federal and state funding — to help underwrite and pay for the clearances of tunnels and bridges that these double-stack cargo containers need to haul between the mid-Atlantic ports — Wilmington, N.C., Baltimore, Md., Hampton Roads, VA, and the Midwest.” Challenges The challenges of such a project seem daunting. The first big step is bringing together all the parties — three ports, six states, the District of Columbia, and the federal government. “Then there is the specific public challenge of convincing the states (at a time when there are relatively significant budget constraints) that this is a worthwhile expenditure of funds,” says Sears. But already they have seen success in Ohio and Pennsylvania. The Chambersburg terminal, completed earlier, was dedicated in December 2008, with Pennsylvania’s Governor Rendell in attendance. “Governor Strickland in Ohio has also been a key supporter of ours,” says Sears. “He is interested in the benefits the National Gateway brings to his state.” Benefits The benefits are substantial. It’s estimated that the National Gateway will provide more than $3.2 billion in public benefits in the route’s first 10 years of operation: • Improved safety and reduced highway maintenance costs by taking over 2 million trucks off the nation’s highways • A reduction of CO2 emissions by over 4 million tons • $2 Billion saved in shipping costs • Fuel consumption reduced by nearly 500 million gallons of gasoline Not to mention the hundreds of construction jobs it will create. CSX hopes those huge benefits will help bring in monies from the federal government. “Federal funding will depend on the states voicing support for the National Gateway,” says Sears. “So our strategy has been to demonstrate those benefits to the states. Then as they can, they have stepped up and supported us with public funds.” Completion The plan is to have the project completed (61 clearance projects in five of the states and D.C.) by 2015. “That’s concurrent with the opening of the expanded Panama Canal, when we think the East Coast port business will grow substantially,” says Sears. “That doesn’t mean though that we’re going to do all the activity right before 2015. We’ll work on the corridor as we have money for it and as business demand justifies it. For example, CSX has already built and opened an intermodal terminal at Chambersburg, Pa. “We also have plans in 2009 to build a terminal in N. Baltimore and the Northwest side of the State of Ohio. And we have other projects on the drawing board as well,” says Sears. Long Road Ahead To-date this is looking to be a successful example of a PPP. “We’re very satisfied with the progress we’ve made,” says Sears. “Certainly, the economy is a challenge for everyone these days, but transportation and infrastructure planning is something that has a longer term horizon, and we need to start now on things that will have benefits in the years to come.” For detailed information on the project, log on to www.nationalgateway.org.	In This Issue New Items Time for the Tough to Get Going Supply Chain Real Estate Responds to Supply Chain Shifts Taking Your Ship to an IP Environment Compliance Corner: SOPs, the Foundation of Trade Compliance New Applications for RFID Features Gateway at a Glance � Canada Moving Goods in a Slower Economy Ports & infrastructure National Gateway — a Public-Private Partnership in Progress California River Ports Port Products Clean Air Equipment Commentary Contract Negotiations Approaching Who, What, Where, When Final Say
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National Gateway a Public-Private Partnership in Progress

National Gateway
a Public-Private Partnership in Progress