Exhibit 99.9
Transportation Overview
Tom Kielty
Vice President, Transportation and Distribution September 27, 2005
Transportation Department = 8 members
Goal
Add value to the products that we mine, process, and market by attaining the most favorable transportation position
Responsible for the entire logistical pipeline, from loading on a transportation conveyance to the satisfaction of the FOB terms.
FOB terms range from fob carrier at the mine site to FOB customer’s bunker
Coordinate logistics for 19 rail served loadouts, 1 barge direct loadout, and 3 surface mines with direct truck to customer, or truck to river terminal business.
Maintain daily contract with customers, mines, carriers, terminals, and agents
Rail Served Loadouts
CSX 12 NS 7 Total 19
Tonnage Distribution
January – June, 2005 (in millions)
Tonnage Distribution
9%
23%
68%
Industrial
Met
Utility
2005 Massey Energy Tons
Where Have They Gone?
24 States in the USA and 13 Foreign Countries
UNITED STATES
CANADA
EUROPE:
Sweden Holland Germany
Italy Finland
ASIA:
Japan Taiwan
Korea India
AFRICA:
Egypt
SOUTH AMERICA:
Brazil
Export and USA Tonnage
January—June 2005
13%
87%
EXPORT
USA
2005 Great Lakes Tons
1.6 Million Tons 7% of our Total
Inland River System 2005
4.4 Million Tons 20% of our Total
9
Tonnage Distribution
BY MODE (in millions)
RAIL 20.5 BARGE .4 TRUCK 1.5 22.4
10
Transportation Distribution
6%
2%
92%
Truck
Barge
Rail
11
Rail Tonnage Distribution
BY CARRIER (in millions)
CSX 13.9 NS 6.6 20.5
12
Rail Tonnage Distribution
68%
32%
NS
CSX
13
Working With Railroads to Maximize Efficiencies
Load largest trains destinations can accommodate
Communicate with carriers to identify customers for win-win-win outcomes Schedule smaller trains heading in the same direction in tandem Schedule non-trainload shipments in tandem with train loads going in the same direction Are responsive to carrier concerns/issues, i.e. weeds, mud, or snow along our sidings where railroad crews work
14
Transportation Issues—2005
Railroads were strained entering 2005 from the after affects of the four hurricanes that struck Florida in the fall of 2004 River system was damaged in January and February, 2005 by flooding Barges broke free striking the Lock and Dam at Mile 204 near Belleville, Ohio causing a complete closure to navigation between Jan. 31 and Feb. 18, 2005 Flooding caused rails to have to make “creative” moves in order to service customers
15
Transportation Issues—2005
Sporadic shortages of crews, locomotive power, and cars Capacity constraints in some rail corridors Cost of new equipment is high
Coal Car—$66,000 each Locomotive—$2 million each
Fuel costs continue to rise
16
Barge Capacity is Strained
New Barge $ 400,000 New Tugboat $6,000,000
Lock and Dam System Needs Attention Barge industry was disrupted by Katrina
17
Rail Service Improvement Prospects in 2006
Railroads will show improvement in 2006
Crew schools are full
Investment in new locomotives in 2004 and 2005 will begin to pay off Railroads are encouraging expansion of private fleets to relieve pressure on system equipment
18
Railroad Challenges—2006
Retention of new crew hires
Hard and Dangerous Work Crazy Hours
Business lines are up across the board on CSX & NS
Must devote adequate resources to all
Merchandise freight continues to rise as the economy continues its post 9/11 recovery
19
Railroad Challenges -2006 (cont’d)
Trucking company demand is up with a shortage of drivers New breed of trucker is not interested in being away from home overnight Motor carriers are partnering with railroads to cover long haul legs between terminals Motor carriers then cover the terminal to customer legs with local runs which are less than 200 mile trips All of the above activity puts strains on rail assets
20
Doing the Right Thing. with Energy
