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CSX updates storm impact on Gulf Coast (CSX issued the following news release on September 15.) JACKSONVILLE, Fla. -- CSX Corporation said today it is continuing to effectively provide rail service to its customers through the previously announced rerouting of traffic around storm-affected areas of the Gulf Coast. "The flexibility of our network has enabled us to respond quickly to the needs of our customers whose freight normally travels across the affected area," said Tony Ingram, executive vice president and chief operating officer. "Service to local customers will also be restored as repairs are made in phases over an estimated six-month period. The rerouted trains will be brought back to the original lines when all major repairs are completed." The company's limits for insurance coverage exceed the expenses anticipated from the storm, which are currently estimated to be $250 million. These estimated expenses include the capital costs of rebuilding the rail infrastructure, losses from business interruption, and other costs associated with the storm damage. As previously announced, CSX has a $25 million self- insured retention. The company currently estimates third-quarter losses associated with business interruption and other costs will negatively impact operating income by around $25 million. While management expects losses above the retention will be covered, certain insurance recoveries related to business interruption losses will not be recognized in the company's operating results until cash is received over the next several months. The company continues to assess the operating and financial impacts of Hurricane Katrina and will outline these in more detail in its third-quarter earnings announcement in late October. CSX Corporation, based in Jacksonville, Fla., owns companies providing rail, intermodal and rail-to-truck transload services that are among the nation's leading transportation companies, connecting more than 70 river, ocean and lake ports, as well as more than 230 short line railroads. Its principal operating company, CSX Transportation Inc., operates the largest railroad in the eastern United States with a 22,000-mile rail network linking commercial markets in 23 states, the District of Columbia, and two Canadian provinces. CSX Intermodal is a stand-alone integrated intermodal company, serving customers with its own truck and terminal operations plus a dedicated domestic container fleet. More information about CSX Corporation and its subsidiaries is available at the company's web site, http://www.csx.com .
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