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CSX Lines Launches an Independent Business and Systems Company

Maritime Activity Reports, Inc.

November 5, 2001

CSX Lines announced the formation of Horizon Services Group, created through the restructuring of the existing organization of CSX Lines. HSG will operate separately from CSX Lines operations and will provide ocean carriers and inland logistics customers world-class, cost-effective "order-to-cash" services through the integration of people, technology and business systems."

The Horizon system places the entire order-to-cash process online, creating a virtually paperless environment from booking to billing with new information available to all users as it is entered into the system. Utilizing the system, customers will be able to perform quickly and more efficiently a comprehensive array of critical "back-office" functions, including customer service, documentation, e-Business, IT, and other business operating processes. CSX Lines has been using this system for two years and last quarter it reached a landmark of 50 percent of all shipper business booked online.

Horizon Services Group will customize the system for each new client, with its experienced teams of business consultants and systems developers. The backbone system for Horizon Services Group is the $70 million system CSX Lines inherited from Sea-Land Service, the former CSX shipping company.

John V. Keenan, the newly announced president of Horizon Services Group stated, "This is a natural progression in implementing an organization that will offer services and products throughout the transportation industry. Our Horizon and Netcaptain products have been recognized by many carriers and shippers as the 'best in class' within the industry. Our people, processes, systems, and e-Business technology have been a proven success within CSX Lines' complex domestic markets and we are confident the same formula will work for customers, large and small, within the global transportation arena."

CSX Lines CEO Chuck Raymond said, "The creation of Horizon Services Group is tremendously exciting for CSX Lines. The Horizon system has allowed us to completely change the way we do business, and we are now eager for the Horizon Services Group to revolutionize the industry and create competitive advantages for our clients."

Rick Kessler, chief operating officer of Horizon Services, further defined the company's mission: "We will provide world-class, cost-effective, "order- to-cash" services through the integration of people, technology and business systems. We will assist our clients to use information creatively and to apply technology for improving service levels to their customers." Kessler added, "Creativity and experience are really the keys. The Horizon Services team brings with it a great deal of knowledge on how to implement a successful e-Business strategy. Our experience at CSX Lines taught us that creativity, the right technology and the right people can achieve great heights that benefit our customers." The new company will be headquartered in Dallas, Texas, and will employ approximately 150 business and IT staff. As this group's organization is comprised of former CSX Lines employees, this new team brings with it a high level of transportation experience in both business and systems development.

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