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What’s going on at CSX? The STB wants to know!


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#1 CNJRoss

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Posted 22 July 2017 - 10:54 AM

Trains Magazine Newswire, 7/19/17:
 

CSX Transportation hits service snags amid operational changes

 

 

JACKSONVILLE, Fla. — CSX Transportation executives acknowledged today that the railroad is having some inevitable service problems as it rolls out major operational changes under new CEO E. Hunter Harrison.

“There’s going to be a little pain and suffering,” before operations are smoothed out, Harrison said on the railroad’s earnings call on Wednesday morning.

The railroad’s key service metrics — including terminal dwell, average train speed, and on-time performance — all improved during the second quarter. Transit time is down, as well, Chief Marketing Officer Fredrik Eliasson says. And executives say they’re confident CSX service will be significantly better once precision scheduled railroading is fully implemented.

But, to-date, the operational improvements have not been felt evenly, shippers say.

 

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#2 CNJRoss

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Posted 27 July 2017 - 07:07 PM

Railway Age  blog, 7/21/17:
 

What’s going on at CSX?

 

 

Hunter Harrison, what exactly is going on at CSX? I’m hearing lots of voices. They’ve become loud and frequent and as such are nearly impossible to ignore. They’re the voices of railroaders, from the executive to the train and engine service level. They’re former and present CSX employees. They’re people who have worked for you at other railroads. And they’re all saying basically the same thing: That the changes you are making at CSX aren’t the right thing to do, or aren’t working.

 

Herewith is a collection of accounts from various sources. Some of it is hearsay. Some of it has been published. Suffice to say that all these sources are credible. I name no names. I pass no judgment. My opinion, as a railroad industry trade journalist with 25 years of experience but who has never lined a turnout, pulled a coupler pin, laid a section of rail or devised a service plan, is irrelevant.

 

SNIP

 

First, what the newspapers have been reporting:

 

• The July 19, 2017 Jacksonville Business Journal: “Despite a strong second quarter for CSX Corp., the company’s stock is plummeting after a bombshell revelation from new CEO Hunter Harrison during the Wednesday morning earnings call. Harrison, whose arrival at CSX led the stock to hitting an all-time high, told analysts during a conference call that his tenure with the company would be short, and that he sees his role as an interim leader to get the company to solid footing before he exits.

 

“‘I’m a short-timer here,’ said Harrison. ‘I’m the interim person that’s going to try to get this company to the next step and good foundation.’ He’s not the only railroad employee who might not be there for long: During the call, the CEO said up to 700 more layoffs may be on the way.

 

“Harrison’s statement, combined with declines in overnight trading, has overshadowed the railroad company’s good second quarter.

 

SNIP

 

• “All helper crews are to be eliminated system-wide and crews will double grades. EHH had all CSX division superintendents and assistants escorted off the property on Friday (July 14). Then, a dozen or more CN operating officers are leaving to come to CSX with much higher pay and stock options.”

 

SNIP

 

“Things are really slowing down on CSX in Ohio. Train movement in and out of Willard is at a crawl. Sidings are filling up. Even the daily train from the Wheeling & Lake Erie to Willard is taking much longer to get in and out of Willard. Twelve hours to run from New London, Ohio, to Willard and return—about 30 miles.

 

“In New York State, we’re starting to witness some problems on the Water Level Route. As the name implies, it’s pretty much flat, save for six miles of 0.89% westbound grade near Batavia. I’ve gone on lunch break from work a couple of times now in the past two weeks and heard crews talking on the radio about some heavy westbound train stalled into Batavia, and they’re single-tracking around it. ‘In-the-field’ reports suggest that the average size of merchandise freights these days is 800-900 axles with only two units up front. The best that one of these trains could hope for is 5 mph up the 0.89%.

 

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#3 CNJRoss

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Posted 27 July 2017 - 07:08 PM

STB news release, 7/27/17:
 

STB REQUESTS SERVICE REPORTING FROM CSX IN LETTER TO HUNTER HARRISON   ecblank.gifecblank.gifecblank.gif
 

 

Today the Surface Transportation Board sent a letter to Hunter Harrison, Chief Executive Officer of CSX Transportation, Inc., expressing concerns about deteriorated service resulting from the railroad’s recent operating changes. The Board has received a number of informal complaints from CSX customers and industry stakeholders regarding increased transit times, unreliable switching operations, inefficient car routings, poor communications and coordination with CSX customer service, and acute disruption to customers’ business operations. The Board also met this week with senior CSX officials in Washington, DC.

In the letter, the Board requests that CSX report its plan to restore reliable service to its shippers in weekly calls with the Board’s Rail Customer and Public Assistance program. Specifically, CSX is expected to provide an overview of its operations, including congestion at critical yards and gateways, interchange operations with other Class I railroads, availability of equipment and manpower, local spot and pull reports, and service to customers with critical needs. The Board also requests that CSX establish a customer service hotline and provide frequent operations updates directly to customers.

The Board’s Rail Customer and Public Assistance program provides STB stakeholders with access to informal assistance with any type of rail-service-related transportation problems. The program is confidential and free to all users. To request assistance, interested persons may email RCPA@stb.gov or call 202-245-0238 or (866) 254-1792.

To view the Board’s letter to Mr. Harrison, click here.


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#4 CNJRoss

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Posted 30 July 2017 - 09:50 AM

Railway Age blog, 7/28:
 

Hunter Harrison responds to Railway Age

 

CSX President and CEO E. Hunter Harrison, our two-time Railroader of the Year, reached out to me personally following publication of my blog, in this space, asking about the events at CSX since he took over the railroad. What I wrote was based solely on correspondence I received from various stakeholders. I promised Hunter that I would publish his response, unedited, and he could use as much space as needed:

 

 

To the Editor,

 

A July 21 column in your publication starts with the question, “Hunter Harrison, what exactly is going on at CSX?” OK, fair question, and I’m glad you asked. Here’s the answer:

 

While I was disappointed with the inaccurate and anonymous comments in the article, I won’t spend time trying to address each of them. Rather I’ll give you a broad overview of the transformation we’re accomplishing at CSX through Precision Scheduled Railroading.

 

CSX is one of North America’s most-important transportation companies. We provide service to many of the United States’ largest industrial centers, and two-thirds of the U.S. population lives within our service territory.

 

You know that, of course, but I want to emphasize the point because it underscores the progress we’re making. To criticize my work over the short period in which I’ve been with CSX is fair game, but in doing so you disparage the efforts of the men and women working tirelessly to fully realize what we know this company is capable of achieving.

 

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#5 Sloan

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Posted 08 August 2017 - 08:37 AM

 

 

CSX union tells Harrison: Don't blame us

 

CSX transportation union is pushing back against comments by President and Chief Executive Hunter Harrison, who recently blamed employees in part for the railroad’s service problems.

http://www.railwayag...on-apology.html



#6 CNJRoss

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Posted 18 August 2017 - 07:23 PM

Railway Age, 8/17/17:
 

CSX, customers and STB: The letters keep flying

 

 

According to numerous observers, CSX service continues to deteriorate, threatening to affect other railroads and, by extension, the economy. Some customers have taken to giving rail traffic to competitor Norfolk Southern. Others, without any other rail options, have moved over to trucks. And some have petitioned the Surface Transportation Board and the House and Senate committees with responsibility for rail transportation to get involved. Letters from all sides have been circulating on Capitol Hill.

 

CSX responded to a large number of rail shipper associations on Aug. 16 with a strongly worded letter from President and CEO E. Hunter Harrison to the Rail Customer Coalition, which is comprised of 44 independent associations representing chemical and agricultural companies, steel and motor vehicle manufacturers, and beer producers and importers, among others. Harrison’s letter, directed to American Chemistry Council President and CEO Cal Dooley, was in response to the RCC’s Aug. 14 letters to the House and Senate Transportation committees detailing “chronic service failures.”

 

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Download attachments: STB and CSX Letters



#7 CNJRoss

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Posted 19 August 2017 - 03:33 PM

Progressive Railroading, 8/16/17:

 
STB seeks details from CSX for service problems

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.

Since the first letter, CSX senior management have been speaking weekly with STB staff to review the railroad's network and informal complaints about service from rail shippers.

 

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#8 CNJRoss

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Posted 19 August 2017 - 06:29 PM

Progressive Railroading,8/18/17:

 
Harrison slams Rail Customer Coalition for CSX criticism

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.

On Monday, the coalition wrote to the heads of the Senate and House transportation committees to allege CSX's service deterioration has caused "severe bottlenecks in the delivery of key goods and services, and has put the health of our nation's economy in jeopardy."

 

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#9 CNJRoss

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Posted 23 August 2017 - 06:39 AM

World-Grain.com, 8/18/17:
 

NGFA urges STB to hold CSX accountable for service failures

 

 

ARLINGTON, VIRGINIA, U.S. – The Agricultural Transportation Working Group — a network of national farm, commodity group and agribusiness organizations, including the National Grain and Feed Association (NGFA) — called upon the Surface Transportation Board (STB) on Aug. 17 to continue its efforts to examine the underlying reasons for the precipitous, deteriorating rail service being provided by CSX.
 
“We are concerned that CSX’s already-chronic service problems may only worsen as demand for rail service increases during the fall peak season, which will include near-record grain and oilseed harvests,” states the letter, which was signed by 18 national producer, commodity and agribusiness organizations.
 
The groups noted that U.S. transportation infrastructure — including freight rail — is an “essential component of U.S. agriculture’s world-class productivity and competitiveness, which contribute substantially to American job creation, U.S. economic growth and world food security.”

 

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#10 CNJRoss

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Posted 24 August 2017 - 04:52 PM

STB news release 8/24/17:
 

SURFACE TRANSPORTATION BOARD TO HOLD PUBLIC LISTENING SESSION ON CSX RAIL SERVICE ISSUES   ecblank.gifecblank.gifecblank.gif
 

 

The Surface Transportation Board announced today that it will hold a public listening session on Tuesday, September 12, 2017, to hear from CSX Transportation, Inc. (CSX) about recent rail service problems on its network and its recovery efforts. The listening session will also give rail shippers and other stakeholders the opportunity to report on the repercussions of these rail service problems and their experiences with CSX’s actions to restore its service to acceptable levels.

Since mid-July, the Board has been closely monitoring CSX’s performance after widespread service problems resulted from CSX’s implementation of changes to its operating plan. Acting Chairman Ann Begeman has had direct conversations with CSX’s President and CEO, E. Hunter Harrison, about the deterioration in CSX’s service, and all three Board Members have twice written to CSX to express their concerns and request information about CSX’s service recovery plans. As part of the Board’s ongoing efforts to ensure that reliable rail service is restored as quickly as possible, STB staff are holding weekly calls with CSX senior management and receiving weekly service metrics from CSX. The Board has been keeping its Congressional oversight committees and other stakeholders informed of its actions and will continue to address these important service reliability issues in a transparent manner to ensure shippers, carriers, and all interested stakeholders are fully informed about the Board’s actions.

The Board’s Rail Customer and Public Assistance (RCPA) office has been working with affected shippers to resolve acute service disruptions and continues to be available for this purpose. Requests submitted to RCPA are confidential, and are not made a part of the formal docket established in today’s decision.

The Board will hold a public listening session beginning at 9:30 a.m. on Tuesday, September 12, 2017, in the Board’s Hearing Room at the agency’s headquarters located at 395 E Street, S.W., in Washington, D.C. The Board will direct CSX to appear at the listening session, and the agency encourages impacted shippers and other railroads to appear as well. Shippers, railroads, and other stakeholders are requested to file with the Board a notice of intent to participate, identifying the party and the proposed speaker, no later than September 7, 2017. The session will be open for public observation.

The Board’s Notice of Public Listening Session in Public Listening Session Regarding CSX Transportation, Inc.’s Rail Service Issues, Docket No. EP 742, and Joint Petition of Foresight Coal Sales, LLC, Sugar Camp Energy, LLC, Williamson Energy, LLC, and Consolidation Coal Company to Address the Adequacy of CSX Transportation’s Coal Transportation Service Originating in the Illinois Basin and Northern Appalachia, Docket No. EP 741, may be viewed and downloaded at www.stb.gov, under "E-LIBRARY / Decisions & Notices / 08 / 24 / 17".

 

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