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ERIE RAIL DEVELOPING SAVE THE DATE: Shipper’s Conference May 22, 2014 Erie ON TRACK FOR REGIONAL GROWTH & JOBS INSIDE: Why the Erie Rail Terminal is Important Economic Impacts Supplying the Demand Special Commentary James Kurre, PhD DevelopErieRail.com

Developing Erie Rail / Erie Inland Port

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Page 1: Developing Erie Rail / Erie Inland Port

ERIE RAILDEVELOPING

SAVE THE DATE: Shipper’s Conference ! May 22, 2014 ! Erie

ON TRACK FOR REGIONAL GROWTH & JOBS

INSIDE:Why the Erie Rail Terminalis ImportantEconomic ImpactsSupplying the DemandSpecial CommentaryJames Kurre, PhD

DevelopErieRail.com

!

!

!

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Page 2: Developing Erie Rail / Erie Inland Port

John Elliott is the President and CEOof theEconomicDevelopmentCorporationof Erie County (EDC) 7B4 .-; ;.& 718.E.7-3;L'/3 PQ!2; C.;;.@B .; -@ 43*3E@> @,< <3-0.@B2; 35@B@C# 7B4 43*3E@> @,< <30.@B2;><@;>3<.-#L '/3# ;3<*3 7; -/3 E374 35@[email protected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email protected] '<7B;>@<-7-.@B :E7BB.B0 7-=.5/.07B )-7-3%B.*3<;.-# 7B4 7 "75/3E@< @1 )5.3B53 .BPB0.B33<.B0 7B4J3@E@0#1<@C!7E*.B!@EE303L

WHY THEERIE RAIL TERMINAL

IS IMPORTANT

Page 2 DevelopErieRail.com

The Erie region, like every other place, must constantly remake itself. We must make our way in aworld economy constantly changing. Our economy must change and develop, or we will get left behind.

Our Region’s economy has been lagging behind. It’s time to catch up.4I &II" B# 7&" *6'D G#F 8#$68 5?D@&IDDID B# 5I (#FI $#(!IB@B@;I 6&" :II! !I#!8I *#F:@&E+We want the full range of job opportunities for our children and anyone who would choose to live in Erie.

All this is easy to say. It is very hard to do.

In the last 50 years, Erie has struggled to remake itself. We continue to struggle for many reasons.One of those reasons has to do with the way we, as a community, look at the changes in the world economy.We need to start looking at those changes as a framework for opportunity rather than a reason to despair.

$#!6( (5./0*!4% 3+/ -,/(4%,#-2 &( 5+-, !)(4,!'" 4(& 04) *#04%!4% !4)+-,/!(- ,#0, /(066" 1, ,#(Erie region, and then work to grow them here. The key is to become better at who we are.Here are some of the ways Erie can grow:

1. Supply services3I+E+ CI68BC $6FI. I"?$6B@#&. FI$FI6B@#&. B#?F@D(. FIB6@8 DB#FID. (I"@6. 7&6&$I 6&" !F#GIDD@#&68 DIF;@$ID1to people living in smaller towns between Erie and our larger neighbor cities.

2. Grow, harvest and process our local resources3I+E+ C6F"*##"D. EF6!ID. $#F& 6&" !#B6B#ID1 B# DI88 @& "@DB6&B (6F:IBD+

3. Process or burn natural gas from our region3I+E+ (6:I GIFB@8@%IF. (6&?G6$B?FI !86DB@$ #F EI&IF6BI I8I$BF@$@B'1 G#F 8#$68 ?DI 6&" I)!#FB+

4. Localize the supply chains for existing manufacturers3I+E+ (6:I BCI (IB68D ?DI" 5' #?F G#?&"F@ID 6&" (@88D1+

5. Keep and grow precision and high tech manufacturing3I+E+ 2#F" /#F!#F6B@#& 6&" AF@I% 06E&IB@$D1 G#F C@EC ;68?I E8#568 I)!#FBD+

9CIFI *@88 $IFB6@&8' 5I D#(I #!!#FB?&@B@ID 5I'#&" BC@D DC#FB 8@DB. 5?B @G *I <?DB "# BCIDI 7;I BC@&ED *I88.Erie will grow again. We will continue our heritage of making things. We will modernize and grow theErie region’s economy while maintaining our quality of life.

'44 .%$ 1001,)(2!)!$+ "-%$ 12$ )"!2# !2 &13312/),-2+01,)-)!12* People use the highways5?B *#?8" 5I&I7B GF#( 5IBBIF 6@F DIF;@$I 6&" C@EC,D!II" F6@8 DIF;@$I+ >FI@ECB ?DID BCI C@EC*6'D B##.5?B (6&' 5?D@&IDDID *#?8" FI688' 5I&I7B GF#( 36&" D#(I 65D#8?BI8' FIH?@FI1 5IBBIF !#FB 6&" F6@8 DIF;@$I+Erie’s economy grew up around its lake port and railroads. But lake shipping and rail freight has changed.A lot. Now we must rebuild on those old foundations.

This is why in 2009 the Economic Development Corporation began the hard detail work: research,strategizing, marketing and partnering to use our ports and railroads to grow our region.9CI AF@I =6@8 9IF(@&68 @D BCI 7FDB #G DI;IF68 BF6&D!#FB6B@#& BCI(I" "I;I8#!(I&BD BCI A-/ *@88 F#88 #?B @&coming months. It will change the way we do business in Erie.

After four years of effort, we are proud to announce: the Erie Rail Terminal development has started. Investorsare committed. Design and permits are underway. Construction will begin in a year. Trains roll in 2016.Erie will have new daily rail freight service to dozens of cities and America’s busiest ports.

Erie can grow again. We’re doing this. All aboard. Save the Date:Shipper’s Conference

May 22, 2014

Page 3: Developing Erie Rail / Erie Inland Port

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DevelopErieRail.com Page 3

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What is Intermodal Freight?

By John ElliotT

The Erie Rail Terminal will handleintermodal freight. Intermodal freightis cargo that moves using different53'&, 3% *./4,23.*/*"340*.)(!,1*./"4,1 ,#"2, /4' -/.$&,034 *#&same trip without ever leaving its*.)(! *./"6&. 3. (34*/"4&.+

PAVING THE WAY

Erie Rail Terminal Crane-way16” steel reinforced concrete

6” stone

Erie Runway Extension10 1/2” asphalt

10” stone

I-9013” concrete

8” stone

City Street6” asphalt6” stone

Sidewalk4” concrete

Pavement is just part of modern life. So much so, we hardly notice it: sidewalks, driveways, roads, runways.The new Erie Rail Terminal will have nearly 30 acres of it. On the surface it all looks the same—but not allpavements are created equal. Pavement needs to measure up to its task. Here are some comparisons:

EDC welcomes partner and equity investor:

www.nhcapitalpartners.com www.strategicrail.com

EDC welcomes debt capital advisor:

Page 4: Developing Erie Rail / Erie Inland Port

Page 4 DevelopErieRail.com

by Steve Rubin- )+!0&!.,2- 10(#+)+/ '$%!*/+"

The Growth of Modern Freight

T20=L6.2H7 H4 4@6032. 0= PJH)J:= 0J.6@LH7:N =20EE0J3X :J7it’s the hottest trend in the0J8@6:=0J3N$ =HE20=.08:.67 ):$ .2:.3HH7= :@6 .@:[email protected] :8@H== .26&J0.67 *.:.6=V OJ.6@LH7:N =20EE0J30= : [email protected]:J$ :@6 4:L0N0:@)0.2X$6. 0. [email protected]=. 0LEH@.:J.4@6032. .@:J=EH@.:.0HJ76+6NHEL6J. 0J.26 N:=. C-:@.6@ 86J.-@$V O. 0= .26L:[email protected]@ H4 3@H).2 4H@ .26 3NH9:N.@:76 H4 L:J-4:8.-@67 :J7 ;0J0=2673HH7=X 6J:9N0J3 =-EEN$ 82:0J= 4H@8HLE:J06= =-82 :=":NL:@. :J7 SY.H [email protected] 2:N4):$ :@H-J7 .26)H@N7V(26 .6@L 0J.6@LH7:N L6:J= .26movementofgoodsbymorethanoneLH76H4 .@:[email protected] -=-:NN$9$: 8HL-90J:.0HJ H4 .@:0J=X .@-8P= :J7 =20E=VO. 2:= E@H+6J .H 96 .26 LH=. 8H=.64468.0+6 L6.2H7 H4 .@:[email protected]@6032. NHJ370=.:J86=X 4@HLAMML0N6=:J7 -EV (26 =-EEN$ 82:0J= H4 L:J$@6.:0N 8HLE:J06= 8:J [email protected] [email protected]:J KMXMMML0N6= :8@H== H86:J= :J78HJ.0J6J.=V (26 3HH7= :@6 E:8P67 0J):[email protected] =6:N67 8HJ.:0J6@= H4=.:J7:@770L6J=0HJ=W IMXDMH@AF 466.NHJ3V OJ 4:8.XL:J$ H4 .26 N:@36 .@-8P=$H- =66 HJ .26 0J.6@=.:.6 :@6 :8.-:NN$2:-N0J3 8HJ.:0J6@= .2:. 2:+6 :N@6:7$H@ )0NN 96 LH+67 9$ .@:0J H@ =20EV

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.#97 !=#!2= 786%3 10#57 =%"2=99 0#($1;9 * 71%3 $1;9 !522=" 0=86%" 9=4=;12 85:= 2#$#'#764=9+For much of the twentieth century, that’s what railroading was. Today, the modern freight train2##39'#;= 263= 1 :6:1%76$ 97;6%: #< /=:#,263= 0#(=9 971$3=" 7)#,86:8 1%" %=1;2& 7)#'62=9 2#%:-carrying imported retail goods or manufactured products for export.

What comes to mind when someone says freight train?

Q1 2010First meetingswith CSX

LATE 2010Survey ofErie Shippers

SPRING 2011Completed 1stversion of marketanalysis

2012Updateof marketanalysis

DECEMBER 2012EDC purchasesproject site

Q2 2013CSX/EDC collaborateon conceptual design

Q1 2013CSX/EDC agreeon market analysis& proposed service

Q3 2013EDC accepts 1st commitmentof private equity

Q4 2013EDC hires EMH&Tas project engineeringfirm, iniates design& permitting process

futu

re

Q2 2014Anticipate environmental& permitting clearancescomplete

Q3 2014Bidding& close financing

Q4 2014Construction begins

Q1 2016Operationsbegin

According to IntermodalAssociation of North America(IANA), the industry’sleading trade association,“…intermodal is growingfaster than any other modeof transportation.”

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Miles

tone

s

Page 5: Developing Erie Rail / Erie Inland Port

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DevelopErieRail.com Page 5

Erie Rail TerminalOverview of

VICINITY MAP

'&*,!+(- $ )!#& %!&"

TERMINAL VIEW

T15 V?05 -90J (5?H0F9J 65+5JCA-H5F/ 0< A9?/ C3 /15 V?05 KFJ9F6;C?/ 0F0/09/0+5R (15 V7CFCH07X5+5JCAH5F/ !C?AC?9/0CF J9.F7156/15 KFJ9F6 ;C?/ 0F0/09/0+5 0F DII, /C3CJJC) /1?C.21 CF CF5 C3 /5F ?57CH-H5F69/0CF< 0F /15 $C<)C?/1 -5AC?/T)1071 <5/ C./ 9F 57CFCH07 AJ9F 3C?/15 V?05 ?520CFR $C<)C?/14< ?57CH-H5F69/0CF)9< /C /9L5 96+9F/925 C3V?054< JC79/0CF 9F6 3C7.< CF JC20</07<R;C?/< 9?5 9 <0HAJ5 0659S 9 AJ975)15?5 A5CAJ5 C? 3?5021/ 719F25 3?CHCF5 /?9F<AC?/9/0CFHC65 /C 9FC/15?R&F 90?AC?/ 0< )15?5 A5CAJ5 25/ C./ C3/15 8.< C? 79? 9F6 CF/C /15 AJ9F5R &/9F C759F AC?/T 3?5021/ 0< JC9656 C33 9<10A 9F6 CF 9 89?25T /?.7L C? /?90FR&F KFJ9F6 ;C?/ 0< 9 JC79/0CF 39?from the ocean that has good riverC? ?90J?C96 J0FL< 9F6 ?5J098J5 3?5021/<5?+075 /C 8C/1 C759F AC?/< 9F6/C C/15? 0FJ9F6 AC?/<R K/ 0< 9 AJ975)15?5 3?5021/ 0< /9L5F C33 9 89?25 C?/?90F9F6AJ9756 0F/C /?.7L< 3C? JC79J

8.<0F5<<R (15 9?59< <.??C.F60F20FJ9F6 AC?/< 857CH5 1.8< C3 7CH-H5?75)0/17CF75F/?9/56)9?51C.<0F2TH9F.397/.?0F2 9F6 60</?08./0CF97/0+0/05<R KF6.</?% 2?C)<F59? 0FJ9F6AC?/<T 85F5:0/0F2 3?CH ?5J098J5T53:0705F/ 9F6 JC)Q7C</ <10AA0F2RV?05 19< JCF2 196 9 AC?/ 0FJ9F6CF B9L5 V?05R (19/4< 9 2?59/ A9?/ C3V?054< 10</C?%T 8./ V?05 0< 9J<C)5JJAC<0/0CF56 3C? 65+5JCAH5F/ 9< 9F KF-J9F6 ;C?/ 8579.<5)5 19+5 5'75JJ5F/?90J 7CFF57/0CF< CF 3C.? ?90J?C96<R"5 19+5 /)C J9L5 AC?/< <5?+0F2 /15V?05?520CFSV?05T;&9F6!CFF59./T>MR$C/1 AC?/< 79F ?5750+5 9F% C3 /15 !9-F9609F 9F6 &H5?079F J9L5?< GJ021/-5? <10A<)C?L0F2 CF N.</ /15 O?59/B9L5<E 9F6 9F% C3 /15 C759F <10A<FC)H9L0F2 =IIP A9<<925< A5? %59?85/)55F /15 &/J9F/07 >759F 9F6O?59/ B9L5< G9JCF2 /15 */R B9)?5F75-0+5? 9F6 /1?C.21 /15 JC7L< 9?C.F6@0929?9 U9JJ<ER(15 V?05 KFJ9F6 ;C?/ 0F0/09/0+5 0<FC/ N.</ CF5 <0/5T 8./ <5+5?9JT 0F7J.60F2<CH5 C./<065 V?05 !C.F/%R K/4< FC/CF5 65+5JCAH5F/T 8./H9F%R (15<5

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Erie: A Port Inland or an Inland Port?By John ElliotT

Located inHarborcreek Township,east of Nagle Road

Page 6: Developing Erie Rail / Erie Inland Port

Page 6 DevelopErieRail.com

by James Kurre, PhD&"1'+.513 #+5657"+ ,'0'21+$ 860.".-.' 5% #1"'4 *92+! )+$559 5% *-0"6'004 /'66 ).2.' *'$1'6(

Why Would Anyone be Crazy Enoughto Invest in an Inland Port?

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QL 04JA9 ;>A9AY 20 N>&N>R9 A9LA97JD H/<P2;VHD2,>09 H>D0L9DA42HA 0JJ;;/DW)49?2DNA 2L,JP,9:>D9 PJ52;>PP&7J;/A9: JL 049 HD2,>09 <9L9?20A >L:42549DHDJ?20A 0J 0492D A4>D94JP:9DAWIJ;>P 5J,9DLN9L0A >L: H/<P2;VN2L:9: LJLHDJ?20A >PAJ 7>;0JD 2L*4>0 9;JLJN2A0A ;>PP 39(09DL>P <9L-9?20AY1 <9L9?20A 0J 04JA9 *4J >D9 LJ0:2D9;0P& 2L,JP,9: 2L 049 0D>LA>;02JLWOn a project like the Erie InlandPort, public agencies like theEconomic Development Cor-poration and county and stategovernment will factor in the)#+'. ('"'$*- *! *%' ,.',&A project like the Erie InlandPort will mean more jobs andincome in the region, and thatwill result in extra spendinglocally. That spending willripple through the economy.

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@JD0*2PP >PAJ HDJ,2:9 > ;JLL9;02JL7JD 049 D952JL 0J L9*N>DR90A 2L[/DJH9Y 49PH2L5 0J :2,9DA27& 049;/A0JN9D <>A9 J7 PJ;>P ?2DNAW [,9D&2L,9A0JD RLJ*A 04>0 :2,9DA27&2L5 049HJD07JP2J 49PHA 0J AHD9>: 049 D2ARW"4J RLJ*AY N>&<9 AJN9 J7 04JA9D90/DL2L5 A42HA *2PP <D2L5 5JJ:T9DN>L <99DY +*2AA ;4J;JP>09A JDN>&<9 > @JDA;49 !>&N>L JD 0*J=ZJD AJN9 J7 /AY 04>0 *J/P: <9 *JD04049 2L,9A0N9L0 D2540 049D9U

3$/2P: 20Y >L: 049&*2PP ;JN9W1Q0 2A > 5D9>0 NJ,29 F/J09Y</0 208A LJ0 AJ 5D9>0 7JD ></A2L9AA HP>LW EJ JL9 ;>L >77JD:0J </2P: > GBON2PP2JL D>2P 09DN2L>PJ7 :D9>NAW )49 [D29 .>2P )9DN2L>PN/A0 N>R9NJL9& 7JD 9,9D&JL92L,JP,9:X 2L,9A0JDAY P9L:9DAY 09DN2L>PJH9D>0JDAY 0D/;R2L5 ;JNH>L29AY 049D>2PDJ>: >L:NJA0 2NHJD0>L0 J7 >PP049 ;>D5J J*L9DAW [,9D&JL9 *4J4>A > A0>R9 2L 20 N/A0 <9 A/D9 20*2PP *JDR 7JD 049NWQL KOO- >L: 9>DP& KOMOY [\!N90*204 P9>:9DA42H J7 7J/D :2779D9L0D>2PDJ>:AY >AR2L5 049N ><J/0 0492D2L09D9A0 2L L9* D>2P A9D,2;9 7JD [D29W)49&*9D9 >PP AR9H02;>P >0 ?2DA0X [D29!J/L0&*>A 0JJ AN>PPW "204 > HJH/-P>02JL J7 S/A0 > ;J/HP9 4/L:D9:04J/A>L:Y *9 *J/P: L9,9D S/A027&A0JHH2L5 049 0D>2LW CL9 D>2PDJ>:+9L2JD %2;9 @D9A2:9L0 9L:9: 049;JL,9DA>02JL 2L P9AA 04>L 09LN2L/09AX 3Q >PD9>:&590 &J/D</A2L9AA

Supplying the DemandBy John ElliotT

/618 %# 8<$:<6 6# -%&#%< (7# 2%#(8 '< 67-6 /1' - ;-% #; 67<;:<< '-:2<6 8&86<') /6 8<<'8 6# '< 67-6 ;:<< -%" 3#04%6-:& 6:-"<between informed buyers and sellers generally gives us a pretty9##" :<8406) /; ,485%<88<8 (-%6 6# '-2< - !:#.6+ 67<& 7-3< 6#$#%35%$< $486#'<:8 6# !-:6 (567 8#'< #; 67<5: 7-:"*<-:%<"dollars. In the process, the businesses have a strong incentive to.94:< #46 (7-6 $486#'<:8 (-%6 -%" 7#( 6# !:#35"< 56 <;.$5<%60&)/; 67<& "#+ 67<& $-% '-2< - 3<:& %5$< 0535%9)

Shipper’s ConferenceMay 22, 2014Erie, PA

Bayfront Convention Center

Save the Date:

Page 7: Developing Erie Rail / Erie Inland Port

DevelopErieRail.com Page 7

Economic Impacts

By John ElliotT

+J/A:8Z SU+ WRJ;<R SM@3541\ KQQ- CJA14 'P8A3:<M 1A/:T3M5 9<1<[^:JMJP3: `8,8RJHP8M1 !JAHJA<13JM J6 ^A38 !J/M1&\ KQNN

3M !R8,8R<M9 <M9 ?311@;/A54Y "4&*J/R9 S *<M1 1J $<RT<M3#8 <M9:<MM3;<R3#8P& J*M;/@3M8@@Y2"8 939 MJ1 D/31Y)48 ^`! <M9 J/A HAJV8:1 H<A1M8A@@H8M1 148 M8(1 14A88 &8<A@ <M<R&#3M5143@ HAJV8:1\ <@ ;J14 < ;/@3M8@@JHHJA1/M31& <M9 <@ <M JHHJA1/M31&6JA ;/@3M8@@Y "8 A8,38*89 HJA1A8:JA9@\ RJ53@13:@ @1/938@\ P<HH89>YE P3RR3JM <MM/<R 1A/:T PJ,8-ments coming to and from the^A38 A853JM <M9 @/A,8&89 M8<AR&IQQ :JPH<M38@Y "8 H8A6JAP89:J@1X;8M8=31 <M<R&@3@ 6JA A<3RPJ,8-P8M1@ ,8A@/@ RJM5X4</R 1A/:T3M5 6JA9J#8M@ J6 :3138@ H<3A89*314 ^A38YS1 1/AM@ J/1 14<1 ;83M5 @P<RR:JM@/P8A@ 939 MJ1P<118A @JP/:4Y)48 ^A38 A853JM M889@ < A<3R 18A-P3M<R 1J @/HHJA1 HAJ9/:13JMZ 3MP<M/6<:1/A3M5\ P81<R\ 6JA8@1A&<M9 <5A3:/R1/A8Y Economic Devel-opment Corporation’s research,validated by the railroad’s anal-ysis and independent experts,proved several important factsabout Erie:

The region is, by far, a region0$ /-0&(')!02 -%*(4)!2# !2 2%),outbound trucking movements.(See the chart showing Erie’s trucking)-.&% +.4.2'%1

The region has a positive%"/0-) )-.&% +.4.2'% 0$ 30-%than four to one in internationalshipping containers.

The region’s businesses are

spending many millions of dollarsevery year to drive their inter,national shipments to the portsof New York and Baltimore, andhaul intermodal freight to railterminals in Cleveland, Buffaloand Pittsburgh.

The region’s trucking patternsoverlap almost perfectly withCSX’s intermodal network.

The Erie region has more than8MJ/54 98P<M9 1J9<& 6JA 3M18A-PJ9<R A<3R @8A,3:8Y !+a *<M1@ 1J@/HHR& @8A,3:8 6JA 14<1 98P<M9YCJ*HA3,<18 3M,8@1JA@ <M9 H<A1M8A@<A8 :JP3M5 1J58148A 1J ;/3R9 148^A38 .<3R )8AP3M<RY"48M 31 3@ ;/3R1\ *8 *3RR ;8 <RR148 PJA8 A8<9& 6JA M8* P<M/6<:-1/A3M5 <M9 *<A84J/@8@ 1J :JP8YERIE REGION’S TRUCKING TRADE BALANCE

BALANCED

Construction Products -140,000

NET-INBOUND NET-OUTBOUND

1

2

3

4

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

%' !21& ,$/, ,$' #."' +/"4 ('.3"2/4 &"44 $/)' 01-",")' '*1213"*effects on our region. But just how good? That is questionanswered by an economic impact analysis that mapped thepotential effects of the Rail Terminal on our region.

]JA 8,8A& P3RR3JM @D/<A8 6881 *898,8RJH\ *8 :<M 8(H8:1 148 ^A38A853JM 8:JMJP& 1J 5AJ* ;& FKNQP3RR3JM <M9 <99 N\IIB M8* VJ;@Y)4<17@ <;35 @4J1 6JA 148^A38 A853JMY'M9 36 *8 :<M ;8 <@ @/::8@@6/R<@ ]AJM1 .J&<R\ 148 ^A38 8:JMJP&*J/R9 5AJ*;& <;J/1 83541 H8A:8M1\

<M9 1J1<R VJ;@ 3M ^A38 !J/M1&*J/R93M:A8<@8 ;& <;J/1 =3,8 H8A:8M1Y)48 ^`!7@ P3@@3JM 3@ 1J 98,8RJH148 A853JM7@ 8:JMJP&\ <M9 3M:A8<@831@ HAJ@H8A31&Y `8,8RJH3M5 148 ^A38.<3R )8AP3M<R H/1@ ^A38 JM 148A3541 1A<:TY62+@B/?3=2+ <24@7 The Erie Rail Terminal and related roadprojects will cost over $60 million and take 15 months to build.The project will temporarily employ over EG' >2/)0/@.

A0/-(+0+B :C/03B <24@7 The Erie Rail Terminal will put aboutG* 1021&0 on its own payroll, including clerks, equipment.8%564.5(7 #%!06"+!(7 (%!'5+4& .-!%5(7 6") #6"6$%#%"43

A0/-(+0+B ;+5C/03B (+5 ;+5?305 <24@. The Terminal will buyservices and supplies from local businesses, and all these newemployees require housing, schools, and services. This all creates6 8.(+,2% 06*. .1 "%/ %!.".#+! 6!,2+,%( 4.46*+"$ *E -2/0 .24@.

ERIE RAIL TERMINAL

FULL TRUCK LOADS PER YEAR

Ag & Food Products -25,000Petro/Chemical -20,000

+23,000 Other

+88,000 Metal Parts & Castings

+225,000 Finished Consumer Goods

#032+5(/F ;-1(3B@7 For every million square feet of manufacturingand warehousing space supported by the Erie Rail Terminal,the 8/C0 032+2-F >C&& D/2> 4F (11/2!C-(B0&F ,$%' -C&&C2+and .24@ >C&& D/2> 4F %9""E.

Economic Impacts

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Page 8: Developing Erie Rail / Erie Inland Port

What will the terminal do?You have probably seen truck trailers and containers on rail cars.This will be a place where cranes will lift containers on or off the train.

What is a container?0 $#%B6@%IG @E BCI 4#( BC6B "IB6$CIE HG#' BCI BG6@9IG )CII9E.allowing them to stack up like blocks and lock together like Legos.

Where will the trains go?The trains from the Erie Rail Terminal will go to the port in New York Cityand to a hub near Toledo where they can switch trains to dozens of citiescoast to coast across North America.

How much will this cost?The project is currently estimated at just over $60 million.

Who is paying for this?The Erie Rail Terminal will be paid for with a combination of privateinvestments and loans. The loans will be either private bonds or borrowedHG#' BCI >I"IG69 =6@9 0"'@%@EBG6B@#%,

Will it pay taxes?JIE, :C@E "I<I9#!'I%B )@99 !6& !G#!IGB& B6(IE 9@;I 6%& %I) "I<I9#!'I%Bwould pay.

&#55 $0#) 533.) ,0+*!#4' "3/.-D?BB@%F $#%B6@%IGE #G BG6@9IGE #% G6@9 GI"?$IE 9#%F-"@EB6%$I BG?$;@%Fbut replaces it with two short trucking moves (one at each end of theBG6@% BG@!1, AG@I )#?9" C6<I 9IEE 9#%F-C6?9 BG?$;@%F 6%" '#GI EC#GB-C6?9trucking. Also, growing new distribution and manufacturing businessesaround the rail terminal would increase total trucking employment.

&#55 ,%#. #4*0)1.) ,0+*! ,01(2*-JIE, :CIGI )@99 $IGB6@%9& 4I @%$GI6EI" BG?$; BG6H7$ 6G#?%" BCI BIG'@%69,0B !I6; C#?GE. )I I(!I$B 6 BG?$; )@99 !6EE BCG#?FC BCI F6BI I<IG&90 seconds or so. Overall, however, these terminals take a lot of trucksoff the highways, reducing congestion and helping our roads last longer.

&#55 ,%#. #4*0)1.) ,01#4 ,01(2*-Current plans are to stop, load and unload trains already passingthrough Erie. In the future, new trains may be added to this routeE!I$@7$699& H#G AG@I HGI@FCB,

How will this impact the environment?The development requires a complete federal environmental clearance6!!G#<69. )C@$C @%$9?"IE GI<@I) #H+ 6@G. )6BIG. %#@EI. BG6H7$. )IB96%"E.endagered species, historic properties, archaeology and other communityimpacts. Also, this project is recycling a site formerly developed forG6@9G#6" 6%" )6GIC#?E@%F !?G!#EIE. G6BCIG BC6% "I<I9#!@%F 6 H6G' 7I9"or wood lot.

&Q AWhat hours will this operate?3I 6%B@$@!6BI BG6@% EIG<@$I 6B 9I6EB 7<I "6&E !IG )II;, 0%" )C@9I BCIBIG'@%69 F6BI '6& %#B GI'6@% #!I% 52 C#?GE. )I I(!I$B #!IG6B@#%E @%the terminal to continue at all hours.

Is it noisy?:CI BIG'@%69 @E %I(B B# BCGII G6@9G#6"E )@BC %I6G9& 8** BG6@%E !IG "6&.so train noise will not increase. The cranes are relatively quiet at just100 feet, making less noise than a lawnmower. Trucks in the terminal)@99 C6<I 7<I '@%?BI @"9I 9@'@BE. )C@$C GI"?$IE 4#BC %#@EI 6%" !#99?B@#%,

Is it secure?The site will be completely fenced and monintored continually bycamera and security. All products coming from international locationswill have passed through customs and security at the port of entry tothe United States.

What about hazardous materials?/#%B6@%IG BG6H7$ @E GIF?96BI" '#GI EBG@%FI%B9& BC6% BG?$;@%F. E# BCI BIG'@%69hazards are less than highway hazards. Most of the hazardous materialsare the same products you can buy at retail stores, like bleach orlawn fertilizer.

When does it get started?Construction is planned for fall of 2014, with the terminal opening forbusiness by early 2016.

CONTACT:Economic Development Corporation of Erie County at [email protected]

THE VALUE OFINT E RMODA L RA I L

Contact CSX to learn more about the value that intermodalrail transportation can bring to your supply chain [email protected] or visit intermodal.com.

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