Railroad News

CSX Corp. has eliminated 2,700 jobs so far this year, as the Class I works through its transition to a more efficient operating plan, Chief Financial Officer Frank Lonegro told investors at a conference last week.

In addition to the 2,700 employees, CSX has eliminated 1,000 contractor and consultant positions, Lonegro said during a presentation at the Cowen & Co. Global Transportation Conference held in Boston.

CSX this week began operations at its new Pittsburgh intermodal terminal in McKees Rocks, Pennsylvania, the railroad announced yesterday.

The terminal offers shippers a new transportation option to move freight to and from Western Pennsylvania, CSX officials said in a press release.

The National Hurricane Center's latest projected track of Hurricane Irma has prompted the Surface Transportation Board (STB) to postpone its Sept. 12 listening session concerning CSX's rail service issues, the board announced yesterday.

The center has projected landfall in southern Florida early on Sept. 11. CSX's headquarters are based in Jacksonville, Fla.

CSX has made "very good progress" in its transition to a precision scheduled railroading model, with the railroad returning to a "normal operating rhythm," President and Chief Executive Officer E. Hunter Harrison announced today.

Harrison is now confident many of the service problems recently reported by CSX customers "are behind us," according to a CSX press release.

CSX has responded to the Surface Transportation Board's (STB) request for details on the Class I's new operating plan for the remainder of the year.

In a letter to STB Acting Chairwoman Ann Begeman, CSX President and Chief Executive Officer E. Hunter Harrison described the railroad's plan for implementing precision scheduled railroading (PSR) across the CSX network and throughout its organization.

The Surface Transportation Board (STB) will hold a public listening session Sept. 12 to hear from CSX about its recent rail service problems and efforts at recovery, the board announced yesterday.

The hearing also will allow rail shippers and other stakeholders to report on the repercussions of CSX's rail service problems and their experience with the railroad's actions to restore service to acceptable levels, STB officials said in a press release.

CSX President and Chief Executive Officer E. Hunter Harrison has fired back at a coalition of rail-shipper trade associations that complained to Congress about rail-service disruptions as the Class I implements a restructuring aimed at improving efficiency.

In a letter sent Wednesday to the Rail Customer Coalition (RCC), Harrison said CSX was disappointed at the "many unfounded and grossly exaggerated statements" the group has made about CSX's service performance as the Class I implements precision scheduled railroading.

The Surface Transportation Board (STB) on Monday wrote its second letter to CSX President and Chief Executive Officer E. Hunter Harrison to express the agency's continued concern over the "widespread degradation of rail service" across the Class I's network.

Late last month, the STB wrote to Harrison about reported disruptions in rail service that resulted from changes to CSX's operating plan. Harrison began implementing the plan after taking over as CSX's leader earlier this year.

CSX violated federal law by implementing a physical abilities battery that discriminates against women, according to a lawsuit field by the U.S. Equal Employment Opportunity Commission (EEOC) last week.

The EEOC alleges that since at least 2008, CSX has conducted isokinetic strength testing as a requirement for workers to be selected for various jobs. Known as the IPCS Biodex, the strength test causes a discriminatory impact on women seeking jobs as conductors, material handlers/clerks, and a number of other job categories, the EEOC said in a press release.

CSX is working closely with first responders to manage rail cars that derailed and caught fire yesterday morning in Hyndman, Pennsylvania.

The derailment involved at least 32 cars, some of which contained hazardous materials, CSX officials said in a press release. At least one car that contained liquified petroleum gas and at least one car that contained molten sulphur leaked and caught fire.

CSX President and Chief Executive Officer E. Hunter Harrison has emailed customers a letter apologizing for recent service disruptions that have occurred as the Class I goes through its restructuring.

The email was sent in response to recent customer complaints about the quality of CSX service. The complaints prompted the Surface Transportation Board last week to contact Harrison and ask the company to address the situation.

The Surface Transportation Board (STB) has expressed concern to CSX about "deteriorated service" as a result of the company's recent restructuring under new President and Chief Executive Officer E. Hunter Harrison.

In a letter sent to Harrison yesterday, the board said it has heard from CSX customers and industry stakeholders concerned about "increased transit times, unreliable switching operations, inefficient car routings, poor communications and coordination with CSX customer service, and acute disruption to customers' business operations," STB officials said in a press release.

CSX has designated the South Alabama Mega Site in Bay Minette as a Select Site.

The site is located between Mobile, Alabama, and Pensacola, Florida, on CSX's mainline.

CSX and North Carolina Ports this month will begin a daily intermodal service between Wilmington and Charlotte.

Dubbed the Queen City Express, the double-stacked train service will launch on July 28, marking the return of intermodal rail to North Carolina Ports, North Carolina Ports Authority officials said in a press release.

CSX Corp. reported second-quarter net earnings rose 15 percent to $510 million from $445 million during the same period last year, as the Class I continued its restructuring under President and Chief Executive Officer E. Hunter Harrison.

Q2 earnings per share increased to 55 cents for the quarter from 47 cents a year ago. Without a $122 million restructuring charge taken during the quarter, the Class I's adjusted earnings per share was 64 cents, CSX officials said in a press release.

On Wednesday, Cummins Inc. executives, Indiana Gov. Eric Holcomb, and other state and local leaders announced plans for a $30 million railroad overpass on State Road 46 in downtown Columbus, Indiana.

The overpass is necessary as CSX continues to advance about $100 million worth of upgrades to a line shared with the Louisville & Indiana Railroad between Louisville and Indianapolis, Cummins officials said in a press release. When the work is completed in mid- to late 2018, CSX expects to begin increasing the number, weight and length of trains on the line.

CSX Corp. shareholders attending the company's annual meeting yesterday approved an $84 million compensation package for E. Hunter Harrison to serve as chief executive officer. 

The payment package was associated with Harrison's decision to join the company as its top executive earlier this year. Harrison had said he would not serve if shareholders did not approve the payment package.