Dubai Ports International Completes Acquisition Of CSX World Terminals

    DUBAI, HONG KONG, and JACKSONVILLE, Fla., Feb. 22 /PRNewswire-FirstCall/
 -- Dubai Ports International ("DPI"), one of the world's leading port
 operators, today announces that it has completed the acquisition of CSX World
 Terminals ("CSX WT" or "the Company"), the international terminal business of
 CSX Corporation (NYSE:   CSX), for closing cash consideration of USD 1.142
 billion, subject to final working capital and long-term debt adjustments.
     The conclusion of this transaction means that DPI is now one of the
 world's top 6 operators.  DPI currently has extensive operations in the Middle
 East, Africa, Europe and India.  The acquisition of CSX WT gives DPI a strong
 presence in Asia for the first time, including CT3 and CT8W in Hong Kong,
 Tianjin and Yantai in China as well as operations in Australia, Germany,
 Dominican Republic and Venezuela. DPI now has a truly international network
 with the capacity to service the needs of customers across the globe. The
 combined portfolio consists of interests in 15 operational terminals in 13
 locations with a combined capacity in excess of 24 million TEUs.
     Importantly for the future development and expansion of the network, DPI
 has acquired the Company's strong pipeline of development projects. In
 particular, CSX WT has a 25% interest in, and will be the operator of, Pusan
 Newport, South Korea, a 9-berth facility with a capacity of 5.5 million teus
 that is currently under development and is expected to commence operations in
 2006.
     DPI has also acquired interests in logistics businesses in Hong Kong and
 China, notably ATL, the market leading logistics operator based at Kwai Chung,
 Hong Kong. On 30 December 2004, prior to the completion of this transaction,
 CSX WT announced that it had raised its stake in Asia Container Terminals Ltd
 ("ACT") to 68.6% giving the Group a majority share in this important
 operation. ACT is the owner and operator of the premier terminal CT8W in Hong
 Kong.
     The transaction was financed from a committed loan facility arranged and
 underwritten by Deutsche Bank AG on 16 December 2004 for USD 1.45 billion.
     Deutsche Bank acted as financial adviser to Dubai Ports International and
 Citigroup Global Markets acted as financial adviser to CSX with respect to the
 transaction.  Sullivan & Cromwell LLP acted as legal counsel to DPI and Arnold
 & Porter LLP represented CSX.
     Sultan Ahmed Bin Sulayem, Executive Chairman, Dubai Ports, commented:
 "I am delighted that the transaction is completed. The acquisition of CSX WT
 complements DPI's existing network, giving us a truly global footprint that
 will benefit our customers and partners around the world. It will allow DPI to
 participate in the long-term growth of the global transportation and logistics
 industry and gives us access to new growth markets in Asia and Latin America.
     "I would like to take this opportunity to welcome CSX WT's employees into
 the DPI family. We are all looking forward to working with you to build and
 develop this business."
     Mohammed Sharaf, Managing Director, Dubai Ports International, said:
 "The addition of such strong operations in Asia means that we can look forward
 to further enhancing our relationships with existing DPI customers and
 extending our high service levels to new ones.  We are proud of the
 relationships we have with our international customers and want to serve them
 at an international level.
     "The skills that have made the Dubai Ports such a success story will be
 transferred to the newly-acquired businesses. Over the longer-term we will
 seek to improve the breadth and quality of the services available across our
 network. As always, we are focused on providing our customers with a level of
 service second to none."
     Peter Wong, Vice President China, CSX World Terminals said:  "I am very
 pleased that the acquisition has been completed. DPI has an excellent
 reputation for the successful management and growth of port operations. It is
 clear that the combination of two such complementary operations is great news
 for our customers and employees."
     Rufin Mak, Vice President Hong Kong, CSX World Terminals said:  "This is
 an exciting time for the World Terminals business and we are looking forward
 to working with DPI to create an even more successful company."
 
      For further information please contact:
      Asia
      Gavin Anderson & Company
      Richard Barton
      +852 9308 1056
      +852 2218 9988
      rbarton@gavinanderson.com.hk
 
      Middle East
      Bell Pottinger Communications
      Tom Mollo
      +9714 390 2514
      +9715 0550 4203
      tmollo@bell-pottinger.co.uk
 
      Ilja Maynard-Gregory
      +852 9803 5702
      +852 2218 9952
      imaynard-gregory@gavinanderson.com.hk
 
      Europe
      Robin Tozer
      +44 (0)207 861 3891
      +4478877 21295
      rtozer@bell-pottinger.co.uk
 
      CSX Corporation
      Misty Skipper
      904-359-1787
      Misty_Skipper@csx.com
 
 
     About Dubai Ports
     Dubai Ports (comprising of Dubai Ports International "DPI" and Dubai Ports
 Authority, "DPA") owns, operates and manages container terminals and ports
 around the world.
     In 2004, the terminals operated by Dubai Ports handled over 8 million TEUs
 which includes ports in India (Port of Visakhapatnam), Saudi Arabia (Port of
 Jeddah), Djibouti (Port of Djibouti) and Romania (Port of Constantza) and the
 home terminals of Jebel Ali and Port Rashid.  Through a sister company, DPI
 also manages the free zones of Malaysia's Port Kalang and the Tangier Free
 Zone.
     DPI's unique cross-sector expertise offers solutions in all aspects of
 port operations, ultimately driving efficiency and financial returns for port
 users.  DPI also enables its customers to experience the same high level of
 service that they have come to expect when their vessels call at Dubai.  DPA
 is known for its ability to provide a superior level of service to shipping
 lines at its flagship domestic operations of Port Rashid and Jebel Ali and has
 been voted "Best Seaport in the Middle East" for 10 consecutive years.
     DPA ranks within the largest container ports worldwide in volume and has
 in recent years embarked on a significant expansion programme.  Over the next
 10 years, DPA is planning to increase capacity from current 6.5 million TEUs
 to over 20 million TEUS. Over the last three years, DPA's annual growth in
 throughput has averaged 23%. In December 2004, DPA reported 24% growth in its
 handling operations and set a cargo traffic record of 6.4 million TEUs for the
 year.  Dubai was ranked the 10th largest port operation in the world.  DPI in
 its four international port operations -- Jeddah, Djibouti, Vizag and
 Constantza -- achieved 26.5% growth year on year in 2004.
     On 8 December 2004, DPI signed a definitive agreement with CSX Corporation
 to acquire the international terminal business conducted by CSX World
 Terminals (CSX WT) and other related interests. CSX WT is a leading
 international terminal developer and operator with operations in Asia, Europe,
 Australia and Latin America.  With completion of this transaction, DPI ranks
 as a top 6 global ports operator. On 30 December 2004, CSX WT announced that
 it had increased its stake in Asia Container Terminals ("ACT") to 68.6%.  ACT
 is the owner and operator of the premier terminal CT8W in Hong Kong.
     In addition to DPI's established operations, it is undertaking a number of
 major development projects around the world including the construction of
 India's largest single operator container terminal at Vallarpadam at Kochi
 Port and the largest capacity and deepest port in South Korea at Pusan New
 Port.
     DPI has been at the forefront of Dubai's extraordinary transformation into
 one of the world's leading trade and commerce hubs.
 
     About CSX Corporation
     CSX Corporation (NYSE:   CSX), based in Jacksonville, Fla., owns the largest
 rail network in the eastern United States.  CSX and its 34,000 employees
 provide rail transportation services over a 21,000 route-mile network in 23
 states, the District of Columbia and two Canadian provinces, and intermodal
 services through CSX Intermodal.
 
 

SOURCE  CSX Corporation; Dubai Ports International

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