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**Danford L. Price**

**Assistant Vice President -**

**Service Measurements**

July 7, 1999

Mr. Melvin F. Clemens, Jr.

Director, Office of Compliance and Enforcement

Surface Transportation Board

U.S. Department of Transportation

The Mercury Building

1925 K Street, N.W., Suite 500

Washington, DC 20423

Dear Mr. Clemens:

Enclosed with this transmittal letter are CSX Transportation's
operational monitoring reports to the Board for the week ending Friday,
July 2.

We continued our strong safety track for the month of June. Compared
with the same period last year, we finished the month with a 10%
improvement in personal injuries and flat performance on FRA-reportable
train accidents on the expanded system.

June was very much a learning, transition month. We began integrating
not only two railroad cultures but diverse geographic areas. The Shared
Assets Areas began operating, the first time such an endeavor has been
undertaken in the rail industry. We implemented our very detailed
operating plan and made an unprecedented and very satisfactory cut-over
in our technology systems. We learned, as anticipated, that we needed to
adopt some directional changes in our operating plan. Together with our
labor partners, we sought ways to improve the fluidity of our terminals,
like in Cleveland, where operations have improved over the past few
weeks. Avon Yard in Indianapolis was another location needing attention,
and we are gratified to see Avon's numbers beginning to show
improvement. We've directed our focus to Selkirk and anticipate those
efforts will soon be reflected in the numbers. We also have deployed a
team to Toledo to develop a combined terminal plan for Walbridge and
Stanley that will optimize Toledo's efficiency.

Total cars on line saw a moderate increase from week to week. For the
week ending July 2, total cars on line increased 1% over the prior week,
2,552 cars. This increase is primarily the function of two factors:
increased carloadings and slower than planned velocity. Much of our
effort is being dedicated to improving our line-of-road velocity.

This week's reports again showed little deviation in either direction as
compared to the prior week. We did not experience the rate of
improvement that we had hoped to see. Although there is a combination of
causes, our overall performance was affected primarily by lower than
normal crew availability during the holiday and vacation period, which
we anticipate will be reflected in next week's measures as well.

\- 2 -

Performance information for the three new measures requested by the
Surface Transportation Board has been posted on our web site. Obviously,
our goal for train delays and blocked sidings/multiple main lines is
zero, but it is important to realize that these conditions occur even on
the best operational days. We are watching these activities very closely
and are striving to reach that goal. The numbers reflected here, while
not to our standards, are not outside the limit of reasonableness and do
not indicate a need for major adjustment.

Sincerely,

Danford L. Price

  --------------- ----------------- --------- -- --------- ----------- ---------- -------- ------ -- --
  **Yard                                                                                             
  Performance**                                                                                      

  (Composite of                                                                                      
  NS/CSX Traffic)                                                                                    

                                                                                                     

                                    Monday       Tuesday   Wednesday   Thursday   Friday             

  Location        Measure           6/28/99      6/29/99   6/30/99     7/1/99     7/2/99             

                                                                                                     

  Oak Island, NJ  Fluid Capacity    1200         1200      1200        1200       1200               

                  Cars On Hand -    612          867       936         859        833                
                  Loaded                                                                             

                  Cars On Hand -    472          776       777         679        737                
                  Empty                                                                              

                  Cars On Hand -    1084         1643      1713        1538       1570               
                  Total                                                                              

                  Cars Handled      520          438       N/A         N/A        381                

                  Dwell Hours       70.0         47.8      N/A         N/A        28.9               

                                                                                                     

  Pavonia, NJ     Fluid Capacity    900          900       900         900        900                

                  Cars On Hand -    175          238       245         296        240                
                  Loaded                                                                             

                  Cars On Hand -    170          250       267         371        278                
                  Empty                                                                              

                  Cars On Hand -    345          488       512         667        518                
                  Total                                                                              

                  Cars Handled      287          237       N/A         N/A        242                

                  Dwell Hours       53.2         34.3      N/A         N/A        37.3               

                                                                                                     

  North Yard, MI  Fluid Capacity    850          850       850         850        850                

                  Cars On Hand -    232          260       325         308        365                
                  Loaded                                                                             

                  Cars On Hand -    146          176       181         145        144                
                  Empty                                                                              

                  Cars On Hand -    378          436       506         453        509                
                  Total                                                                              

                  Cars Handled      195          66        N/A         N/A        117                

                  Dwell Hours       38.7         32.9      N/A         N/A        28.4               

                                                                                                     

  **CSX           Cars Handled and                                                                   
  Comments:**     Dwell Hour                                                                         
                  measurements are                                                                   
                  unavailable for                                                                    
                  Wednesday,                                                                         
                  6/30/99,                                                                           

                  and Thursday,                                                                      
                  7/1/99, due to                                                                     
                  anomalies in                                                                       
                  Conrail\'s                                                                         
                  Operations                                                                         
                  Performance                                                                        

                  Measurement                                                                        
                  System. Data for                                                                   
                  the other three                                                                    
                  days may be                                                                        
                  incomplete.                                                                        

                  Daily on hand car                                                                  
                  counts increased                                                                   
                  at Oak Island but                                                                  
                  decreased at                                                                       
                  Pavonia                                                                            

                  and North Yard.                                                                    
                  Conrail terminal                                                                   
                  dwell reflects                                                                     
                  all cars handled                                                                   
                  in those yards                                                                     

                  (excluding relay                                                                   
                  cars)                                                                              
                  irrespective of                                                                    
                  car status.                                                                        
                  Overall terminal                                                                   
                  dwell                                                                              

                  which could be                                                                     
                  measured improved                                                                  
                  from the prior                                                                     
                  week at Oak                                                                        
                  Island,                                                                            

                  Pavonia, and                                                                       
                  North Yard.                                                                        

                                                                                                     
  --------------- ----------------- --------- -- --------- ----------- ---------- -------- ------ -- --

  ---------------- ---- --------------- ----------- ---- --------- ----- --------- ------ ----------- ------ ---------- -------- --
                                                                                                                                 

  **Train                                                                                                                        
  Originations**                                                                                                                 

  (Composite of                                                                                                                  
  NS/CSX Traffic)                                                                                                                

                                                                                                                                 

                                                         Monday          Tuesday          Wednesday          Thursday   Friday   

  Location              Measure                          6/28/99         6/29/99          6/30/99            7/1/99     7/2/99   

                                                                                                                                 

  North Jersey SAA      Number of                        7               17               9                  8          10       
                        Originations                                                                                             

                        \% Ontime                        14%             18%              0%                 25%        0%       

                        \% Late 0-2                      29%             24%              44%                13%        20%      
                        Hours                                                                                                    

                        \% Late 2-4                      14%             29%              22%                38%        60%      
                        Hours                                                                                                    

                        \% Late 4-6                      14%             6%               0%                 0%         10%      
                        Hours                                                                                                    

                        \% Late GT 6                     29%             24%              33%                25%        10%      
                        Hours                                                                                                    

                                                                                                                                 

  South Jersey SAA      Number of                        2               2                0                  1          2        
                        Originations                                                                                             

                        \% Ontime                        0%              0%               0%                 100%       0%       

                        \% Late 0-2                      0%              50%              0%                 0%         100%     
                        Hours                                                                                                    

                        \% Late 2-4                      50%             50%              0%                 0%         0%       
                        Hours                                                                                                    

                        \% Late 4-6                      0%              0%               0%                 0%         0%       
                        Hours                                                                                                    

                        \% Late GT 6                     50%             0%               0%                 0%         0%       
                        Hours                                                                                                    

                                                                                                                                 

  Detroit SAA           Number of                        4               5                7                  3          6        
                        Originations                                                                                             

                        \% Ontime                        0%              20%              14%                67%        0%       

                        \% Late 0-2                      50%             20%              0%                 0%         0%       
                        Hours                                                                                                    

                        \% Late 2-4                      0%              40%              57%                0%         0%       
                        Hours                                                                                                    

                        \% Late 4-6                      0%              0%               14%                0%         17%      
                        Hours                                                                                                    

                        \% Late GT 6                     50%             20%              14%                33%        83%      
                        Hours                                                                                                    

                                                                                                                                 

  **CSX                 Road train                                                                                               
  Comments:**           originations                                                                                             
                        continued to be                                                                                          
                        affected by                                                                                              
                        resource                                                                                                 
                        constraints                                                                                              
                        including                                                                                                

                        crew and power                                                                                           
                        availability.                                                                                            

                                                                                                                                 

                                                                                                                                 
  ---------------- ---- --------------- ----------- ---- --------- ----- --------- ------ ----------- ------ ---------- -------- --

  ------------- -------------------- --------- --------- ----------- ---------- -- -------- -------- ---------
  **CSXT Cars                                                                                        
  Offered in                                                                                         
  Interchange                                                                                        
  but not                                                                                            
  Accepted**                                                                                         

  (Snapshot at                                                                                       
  Midnight for                                                                                       
  Day Measured)                                                                                      

                                                                                                     

                                     Monday    Tuesday   Wednesday   Thursday      Friday            Daily

  Measure       Railroad Offered To  6/28/99   6/29/99   6/30/99     7/1/99                 7/2/99   Average

                                                                                                     

  Cars Offered  NS                   574       419       174         173                    218      311

                All Other            10        0         0           0                      0        2

                                                                                                     

                Total                584       419       174         173                    218      313

                                                                                                     

                                                                                                     

  **CSXT Train                                                                                       
  Delay**                                                                                            

  (Snapshot at                                                                                       
  14:30 for Day                                                                                      
  Measured)                                                                                          

                                                                                                     

                                     Monday    Tuesday   Wednesday   Thursday               Friday   Weekly

  Measure       Cause of Delay       6/28/99   6/29/99   6/30/99     7/1/99                 7/2/99   Total

                                                                                                     

  Train Delay   Crew                 2         1         1           0                      4        8

                Power                2         6         2           0                      0        10

                Congestion/Staging   1         2         4           6                      2        15

                                                                                                     

                Total                5         9         7           6                      6        33

                                                                                                     

                                                                                                     

  **CSXT                                                                                             
  Blocked                                                                                            
  Sidings or                                                                                         
  Multiple Main                                                                                      
  Lines**                                                                                            

  (Snapshot at                                                                                       
  14:30 for Day                                                                                      
  Measured)                                                                                          

                                                                                                     

                                     Monday    Tuesday   Wednesday   Thursday               Friday   Weekly

  Measure       Track Type           6/28/99   6/29/99   6/30/99     7/1/99                 7/2/99   Total

                                                                                                     

  Blocked       Sidings              2         2         3           3                      2        12

                Multiple Main Lines  0         0         1           3                      3        7

                                                                                                     

                Total                2         2         4           6                      5        19
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