by spatcher
Zeke wrote:CSX = Crash...Spill...ExplodeIf only explode started with an x.....rolling eyes
Railroad Forums
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Zeke wrote:CSX = Crash...Spill...ExplodeIf only explode started with an x.....rolling eyes
spatcher wrote:Or how say we express it as CSX = Crash....Spill....eXplodeZeke wrote:CSX = Crash...Spill...ExplodeIf only explode started with an x.....rolling eyes
New CSX CEO Hunter Harrison eyes yard closures, truckers’ market share to lift profits
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His ability to squeeze railroads’ profits by shutting yards, cutting employees and driving efficiency using “precision railroading” is another, which is why Harrison, 72, will likely cost CSX $300 million for a four-year contract.
He takes the helm of America’s third-largest railroad at a time when revenue from coal, CSX’s most lucrative commodity, has fallen by a third from 2014 to 2016 and the company’s cumulative job cuts since 2012 are approaching 20 percent of its workforce.
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Despite operating improvements, CSX remains the least profitable major North American railroad.
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But he has also noted that Harrison, Morningstar’s 2013 “CEO of the Year,” slashed Canadian Pacific’s operating ratio – operating expenses as a percentage of revenue, a key metric of railroad profitability for Wall Street – to under 59 percent in 2016, from more than 81 percent in 2011.
CSX’s operating ratio was nearly 70 percent in 2016.
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ekt8750 wrote:Any chance they might actually start buying from EMD again?I kind of doubt if they will buy any new locomotives in quantity anytime soon. Just my opinion.
ekt8750 wrote:Any chance they might actually start buying from EMD again?EMD's lack of reliability, performance, pricing and financing have left it a bit player in the locomotive market. Carriers will buy from EMD for one reason only - to keep GE honest and prevent a total monopoly of the US locomotive market. If and it is a big if, EMD can build and support a demonstrably superior locomotive at a more than competitive price and financing they may be able to claw back a legitimate portion of the locomotive market.
Noel Weaver wrote:Most of the Class I's are in the same boat after 10+ years of binge-buying brand new intermodal corridor power, so that's an industry-wide purchase slowdown and not anything unique to CSX. CP was going through the same draw-down in pace of purchasing in HH's last years there, too, so it has more to do with the comedown from an industry-wide procurement high than it does with any biz nuts-and-bolts specific to one Class I over another. Most of them have such a glut of displaced/rebuild power being passed around the leaser market like Pez candy or stacked like cordwood in-storage to cover every fluctuation in the leaser market. There's little financial incentive for new rounds of big strategic procurements for the rest of this decade and first few years of the 20's. Tradin' the proverbial baseball cards pretty much will cover all foreseeable needs until the 1st-gen SD's/GP's of the Johnson & Nixon Administrations finally pass out of respectability for any further rebuild on Class I/II rosters and disperse fully down to their next lifecycle as III's/shortline mainstays. GE's got more money to make in the next decade selling parts & re-power kits for its last 30 years' worth of installed base than it does pushing new units, and is acting the part with its quiet product catalog of late. Don't know where that leaves EMD since they coughed up the market lead long ago and have a whole lot less 1990's-and-newer stuff to supply-chain for upcoming rebuilds, but they don't have a choice but to play in the same boat because the market is what it is for the foreseeable future.ekt8750 wrote:Any chance they might actually start buying from EMD again?I kind of doubt if they will buy any new locomotives in quantity anytime soon. Just my opinion.
Noel Weaver
Backshophoss wrote:Figure on a large sell off of unneeded real estate for redevelopment,as major yards are closed.Yep! Forestall any capacity enhancements before they are needed and price them out of reality when they are needed.
railfan1928 wrote:What lines do you think will get spunoff? What types of further employee cuts will he make?Can't comment on specific line closures or employee cuts. I do know CSX was looking to sell off less utilized routes like Tampa, Florida for commuter rail for instance and retain usage rights,
Some good information can be found here:
http://cs.trains.com/trn/b/fred-frailey ... t-csx.aspx" onclick="window.open(this.href);return false;