is an increased clarity of responsibility and accountability for obtaining the right results in the right way. Also in 2004, CSX and Norfolk Southern reor- ganized their jointly owned Conrail properties consistent with a plan reviewed by several federal authorities. CSX Transportation now directly owns and controls routes and assets previously operated under various agree- ments. As a result of these actions, CSX’s financial reporting is now simpler and easier to understand and the company is free to use the property in a manner that best suits its overall needs and objectives.  Near the end of 2004, the company announced that Dubai Ports International planned to pur- chase CSX World Terminals, CSX’s international container terminals company. This transaction, which was completed in February 2005, will allow CSX to further sharpen its focus on the company’s core surface transportation operations. CSX plays an integral role in the nation’s economic development and the growth of the global economy. Globalization has resulted in longer international supply chains that will continue to benefit CSX. A strong global economy puts more raw materials and finished goods through the 70 ocean, river and lake ports served by CSX. At CSX, our confidence is strong and growing in light of anticipated changes in the economic landscape, notably the increased globalization of trade and the increasing congestion on the interstate highway system.  sion of Congress. The Clear Skies legislation, which promotes the use of clean, efficient fuel sources like coal, is especially important to the country’s continued economic well-being.  Changes in the competitive transportation mar- ketplace have helped make rail transportation an integral part of the global supply chain. The Transportation Services Index, published by the U.S. Department of Transportation for the last 14 years, remained at an all-time high throughout most of 2004. CSX and the rail industry are see- ing the benefits of an environment in which the demand for freight transportation exceeds capacity across all modes of transportation. In the legislative arena, the rail industry was suc- cessful in its attempts to repeal an unfair diesel fuel tax that was levied only on railroads and barges. CSX is also encouraged by Congress’ recent passage of the Class Action Fairness Act that President Bush signed into law and by the improvements to the legal environment in South Carolina and West Virginia. These changes are a good start, but additional reform is need- ed to make the litigation environment more fair for everyone and more comparable to other legal systems in the industrialized world.  Congestion on the nation’s aging highway sys- tem and limited prospects for new interstate highway construction suggest that more cus- tomers will look to the rail industry to move raw materials and deliver their goods to market. The trucking industry – which is both our com- petitor and our customer – faces higher fuel and insurance costs and driver shortages. CSX and the Looking ahead, enactment of a national energy bill and the President’s Clear Skies initiative must remain a high priority in the current ses- Reason for Optimism