Railroad News

CSX Corp.'s first-quarter 2016 revenue fell 14 percent to $2.62 billion compared with Q1 2015 revenue as the Class I faced continuing volume declines, particularly in the coal market, executives announced yesterday.

Q1 earnings fell to $356 million, or 37 cents per share, compared with $442 million, or 45 cents per share in the same period a year ago, according to a CSX press release.

The first trains arrived yesterday at the Jacksonville Port Authority's (JAXPORT) new intermodal container transfer facility at Dames Point in Jacksonville, Fla.

Prior to the facility's official opening for commercial cargo later this year, the terminal is being used to support the port-based 832nd Transportation Battalion's military training exercises, port authority officials said in a press release.

CSX announced yesterday that it would lay off employees and trim costs in Russell, Ky., in response to declining coal volumes, a spokeswoman for the Class I said yesterday.

CSX will lay off 101 union and management employees in the transportation and mechanical departments at the rail yard and mechanical car shop in Russell, Ky., CSX spokeswoman Melanie Cost said in an email. About 430 employees work in Russell.

CSX has appointed three new engineering leaders following the announcement that Vice President-Engineering John West will retire April 1, the Class I announced yesterday.

Ricky Johnson has been named VP-engineering as of April 1; Greg Mellish, formerly chief engineer of maintenance of way (MOW) south, has moved into the role of chief engineer MOW north; Lee Moss, most recently serving as assistant chief engineer, has been appointed chief engineer MOW south; and Eric Pachman, previously director of network modeling and analytics, has been named assistant chief engineer, according to a CSX press release.

The derailment of a CSX crude-oil train two years ago in Lynchburg, Va., was likely the result of a broken rail caused by a reverse detail fracture with evidence of rolling contact fatigue, the National Transportation Safety Board (NTSB) concluded in its accident report issued yesterday.

The train derailed April 30, 2014, sending three of the 17 derailed cars into the James River. One car was breached and released 29,868 gallons of crude oil into the river, some of which caught fire, according to the report.

The Wasburn Switch Business Park in Cleveland County, N.C., has been identified as a CSX "Select Site," the Class I announced Monday.

CSX Select Sites are development-ready properties along the railroad's network where standard land use and due diligence issues have been addressed. The properties are positioned to meet manufacturers' needs, thereby significantly reducing the time required to build new facilities and bring products to market, CSX officials said in a press release.

CSX became a component of the Nasdaq-100 Index as of yesterday's market open, the company announced yesterday.

The index is composed of the 100 largest non-financial stocks listed on the Nasdaq Stock Market based on market capitalization. CSX currently has a market capitalization of about $25 billion, CSX officials said in a press release.

CSX Chief Financial Officer Frank Lonegro said yesterday the company expects this year's economy to be "challenging," as the Class I faces intensifying coal headwinds and other economic factors that will contribute to declining volumes.

In a press release, Lonegro said CSX expects first-quarter earnings to drop "significantly."

CSX will streamline operations at 16 of its car repair facilities as part of an ongoing effort to align resources with demand, the Class I announced last week.

Operations will be reduced at car shops in Montgomery, Ala.; Washington, D.C.; Baldwin, Fla.; Indianapolis and Evansville, Ind; New Orleans; Detroit and Grand Rapids, Mich.; Wilmington, N.C.; Kenmore, N.Y.; Ashtabula, Ohio; Erie and Pittsburgh, Pa.; Florence, S.C.; Richmond, Va.; and Huntington, W.Va., according to a CSX press release.

The Federal Railroad Administration (FRA) and the District Department of Transportation (DDOT) in Washington, D.C., will host a meeting Feb. 10 to gather public input on the replacement or rehabilitation of the Long Bridge.

The meeting is part of the Long Bridge Phase II study, which is underway. The existing two-track bridge is owned by CSX and serves freight, Amtrak and Virginia Railway Express (VRE) trains.

CSX Corp. announced yesterday that it's consolidating operations administration from 10 divisions to nine divisions and closing administrative offices in Huntington, W.Va.

Huntington Division administration will be reassigned to the Atlanta, Baltimore, Florence, Great Lakes and Louisville divisions, the company said in a press release.

CSX will develop a major freight-rail intermodal terminal in Johnston County, N.C., the company and Gov. Pat McCrory announced yesterday.

The proposed "Carolina Connector," or CCX, will serve as an intermodal transportation hub in the south, transferring a range of goods — from food to furniture to appliances — between trucks and trains, CSX officials said in a press release.

CSX Corp.'s fourth-quarter 2015 revenue and profit were down compared with the same quarter in 2014, but the Class I's results beat Wall Street's expectations.

CSX reported yesterday that fourth-quarter 2015 net earnings declined 5 percent to $466 million, or 48 cents per share, compared with $491 million, or 49 cents per share, in the prior year's quarter.

CSX yesterday announced new leadership appointments to its sales and marketing organization.

Dean Piacente has been named vice president-intermodal; Clark Robertson, VP-chemicals; and Tim McNulty, VP-agriculture. All three will report to Fredrick Eliasson, executive VP and chief sales and marketing officer, according to a CSX press release.

CSX worked with customers to locate 107 new plants or expanded facilities — projects worth $2.2 billion in customer investments — on the company's rail network last year, the Class I announced yesterday.

The new projects are expected to generate 1,500 new jobs in CSX-served areas, CSX officials said in a news release.

The Florida Department of Transportation (FDOT) will host a public meeting today on alternatives for a proposed railroad overpass in the city of Starke.

The meeting is being held as part of FDOT's project development and environment study for the possible overpass and potential locations, FDOT officials said in a press release.