Post EHH Changes for CSX

Discussion of the operations of CSX Transportation, from 1980 to the present. Official site can be found here: CSXT.COM.

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QB 52.32
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Re: Post EHH Changes for CSX

Post by QB 52.32 » Sat Nov 23, 2019 6:45 pm

So rr503, this brings us right back to my original point, that you dispute, not to expect growth requiring additional infrastructure capacity that can't financially justify long-term capital investment. You do realize that much infrastructure capital investment that supported growth 3, 5, 10, 25 years ago came from government coffers, at least in the East? Prudent long-term growth will only be supported for markets tending toward some mix of higher cubic density, longer hauls, higher volumes and, in some instances, special handling requirements. Regional railroads do not provide an example for Class 1's and much of their infrastructure capital investment comes from or with the assistance of government sources. Your example of short-haul markets the likes of CN and CSX focused upon the Port of NY/NJ, in addition to others at CSX unchanged from pre-EHH to post-EHH, come from available linehaul network infrastructure capacity, not from terminal capacity. So, yes, there is short-haul potential but not where it requires additional linehaul capacity infrastructure private capital investment. PSR may just allow a more fine-tuned and focused approach to filling capacity, including targeting in shorter-haul markets.

The line of thinking of some analysts and "railroad industry professionals" criticizing specifically larger railroads for their failure to capitalize on market opportunities is often rhetoric told through a lens of PR and image, bias and click-baiting, and incomplete or dated sourcing that leads to inaccurate or incomplete conclusions. And, push back against EHH & PSR, despite the positive and significant transformation at CSX, can be particularly strong because the apple cart has been upended. Of course management focus shifts once strategic OR is attained, but, make no mistake, there is no retreat.

Class 1 railroads, including CSX post-EHH, will only change their behavior if the playing field changes.

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Re: Post EHH Changes for CSX

Post by mmi16 » Mon Nov 25, 2019 4:49 pm

QB 52.32 wrote:
Sat Nov 23, 2019 6:45 pm
Class 1 railroads, including CSX post-EHH, will only change their behavior if the playing field changes.
When you have just about eliminated your Sales and Marketing forces - you don't know when the playing field changes.
Never too old to have a happy childhood!

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