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.
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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.
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• “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.”
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“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%.