Railroad News

CSX Corp.'s second-quarter 2016 revenue declined 12 percent to $2.7 billion, driven by a 9 percent decrease in volume that affected all markets but especially coal, which plummeted more than 30 percent.

The company yesterday posted Q2 net income of $445 million, or 47 cents per share, down from $553 million, or 56 cents per share, in the same period last year.

CSX will need to submit monthly reports for the next year that detail situations in which grade crossings are blocked by trains on its line in southwest Chicago and adjacent suburbs, the Surface Transportation Board (STB) ruled last week.

The STB ordered that CSX can’t operate trains into or out of the Chicago terminal over the Elsdon Line unless the line is clear, according to the agency's decision.

Wainwright Industries/TVS Supply Chain Solutions South Carolina plans to build a second facility in Charleston, S.C., to serve increasing demand for third-party logistics and supply-chain services.

Wainwright will build a 212,000-square-foot, CSX-served facility to provide warehousing and logistics for some of the South Carolina Ports Authority's (SCPA) key market segments, including forestry products, which represent 15 percent of the port's cargo volume. Wainwright's existing Ladson facility serves the automotive segment.

CSX Corp. released its sixth annual Corporate Social Responsibility Report yesterday.

Titled “Moving Forward,” the report outlines the Class I’s past performance and future goals in five key areas: business performance and governance; safety and security; employees; environment; and community. The report was prepared in accordance with the Global Reporting Initiative G4 Sustainability Reporting Guidelines, CSX officials said in a press release.

CSX Chairman and Chief Executive Officer Michael Ward late last week announced several senior leadership changes, including the July 1 retirement of Lisa Mancini, the Class I's executive vice president and chief administrative officer.

The company is realigning its senior team to advance its vision for the workforce, service, productivity and technology of the future, CSX officials said in a press release.

CSX Corp. Executive Vice President and Chief Financial Officer Frank Lonegro updated investors and analysts yesterday on the company's second-quarter and full year expectations, as well as plans to continue managing a transition in its business mix.

For the second quarter, CSX expects high-single digit volume declines, which will negatively affect earnings for the quarter. In addition, market forces are expected to offset gains in safety, service, pricing and efficiency, resulting in CSX's first full-year earnings decline since the recession, according to a CSX press release.

CSX has been named one of Corporate Responsibility Magazine's "Best Corporate Citizens" for 2016, marking the Class I's fourth appearance on the list.

CSX placed No. 47 on this year's list, and was the only railroad included in the ranking, according to a company press release.

The South Carolina Ports Authority (SCPA) on Wednesday announced plans for a second inland port facility as a result of the success of its Inland Port Greer and the demand for more efficient international container movement between the Port of Charleston and growing markets in South Carolina and North Carolina.

Port officials are in discussions with CSX to determine the viability of Dillion, S.C., as a potential location for the next inland port, said SCPA President and Chief Executive Officer Jim Newsome in a press release. The parties hope to finalize plans by year's end, he said.

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.