CSXT- Anniversary Report

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CSXT- Anniversary Report

From CSX update: Takeaways from the March 1 investor conference — analysis by Tony Hatch, Progressive Railroading

Dennis Wilmot, President & CEO

Dennis Wilmot, President & CEO

 

 

 

 

 

 

 

It has been a year since Hunter Harrison was named CEO of CSX promising an overhaul, improved service, and a “reformation” of rail operations. Change was fast, “a blood bath” as some told me, and the impact on service initially was pretty much all negative. With Mr. Harrison gone due to his untimely passing, what are the prospects now? Has his management style continued beyond his death, and where is CSX heading now? (See THIS POST for a comparison of his style to key generals in American history)

Tony Hatch, a well-known independent transportation analyst and consultant, asked several questions in his recent article in Progressive Railroading. Details are available in his article at the link above.

  1. What’s left to be done in the PSR transition (heavy lifting or light maintenance work?)

  2. Does CN’s well-publicized (overly publicized?) service issues mean, as an analyst (staggeringly) asked of them, that PSR is a one-trick pony?

  3. How has CSX’s service recovery progressed? This is big.

  4. How has Norfolk Southern’s own service issues — and CSX’s recovery — impacted the rail competitive situation in the East/Southeast?

  5. Who Ed and Jim have identified as “next-gen” CSX leaders (so far).

  6. What strategic decisions might be (or have been) re-thought (such as the Baltimore tunnel).

  7. From VP of Industrial Products Michael Rutherford (he presented at RailTrends 2017) on how the industrial (car-load) products business will benefit from PSR (the “point of the spear”).

  8. From VP of Intermodal Dean Piacente (RailTrends 2016) on what the new Intermodal strategy will look like — and the future of North Baltimore and the Harrison reversed hub-and-spoke strategy.

  9. The extent and nature of the CSX short-line strategy — how realistic is the “8,000 miles under review” commentary; what are the actual segments and timing

  10. From CFO Frank (“Lone Survivor”) Lonegro on guidance (hopefully more longer term and little short term; and even more hopefully more on ROIC than OR!)

My own questions include:

How united is the executive management team at CSX now?

Is the employee base still pretty much all “waiting for the other shoe to drop”?

When will there be enough minds to staff customer service and other departments critical to customer relations?

The speakers from CSX sound like politicians explaining political disasters, but what do the customers really think?

Plenty of challenges remain for CSX, and their success or failure could have deep ramifications on the rail industry right at a time when driverless trucks, Tesla trucks, and other factors loom on the horizon. We are all hoping for CSXT’s success. What are your biggest concerns? You can reach me at dennis@ihlogistics.com.

By | 2018-03-19T10:31:29+00:00 March 19th, 2018|logistics, Transportation|0 Comments

About the Author:

Dennis Wilmot started Iron Horse in January 2002 after eleven years working for rail carriers and sixteen years for private corporations. My full details are available @ https://www.linkedin.com/in/dennisewilmot

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