CSX Corporation

Last updated
CSX Corporation
Company type Public
IndustryTransport, real estate, technology
Predecessors
FoundedNovember 1, 1980;44 years ago (1980-11-01)
Headquarters CSX Transportation Building,
Jacksonville, Florida
,
U.S.
Area served
 North America
Key people
ServicesRailroad Transport
RevenueIncrease2.svg US$14.66 billion (2023)
Decrease2.svg US$5.561 billion (2023)
Decrease2.svg US$3.715 billion (2023)
Total assets Increase2.svg US$42.41 billion (2023)
Total equity Decrease2.svg US$12.13 billion (2023)
Number of employees
23,000 (2023)
Subsidiaries
Website csx.com
Footnotes /references
[3]

CSX Corporation is an American holding company focused on rail transportation and real estate in North America, among other industries. The company was established in 1980 as part of the Chessie System and Seaboard Coast Line Industries merger. The various railroads of the former Chessie System and Seaboard Coast Line Industries that are now owned by CSX Corporation were eventually merged into a single line in 1986 and it became known as CSX Transportation. CSX Corporation currently has a number of subsidiaries beyond CSX Transportation. Previously based in Richmond, Virginia after the merger, the corporation moved its headquarters to Jacksonville, Florida, in 2003. CSX is a Fortune 500 company.

Contents

Subsidiaries and divisions

CSX Transportation

CSX Transportation is a Class I railroad operating in the eastern United States and the Canadian provinces of Ontario and Quebec. The railroad operates approximately 21,000 route miles (34,000 km) of track. [4]

As of December 30, 2016, CSX Transportation served population centers in 23 states east of the Mississippi River, the District of Columbia and the Canadian provinces of Ontario and Quebec. Also as of that date, it had access to over 70 ocean, river and lake port terminals along the Atlantic and Gulf Coasts, the Mississippi River, the Great Lakes and the St. Lawrence Seaway.

Following a successful merger application to the Surface Transportation Board, CSX Corporation and CSX Transportation acquired Pan Am Railways in 2022, including a 50 percent stake in Pan Am Southern. [5] [6]

Conrail

Conrail was the primary Class I railroad in the Northeastern United States between 1976 and 1999. The trade name Conrail is a portmanteau based on the company's legal name (Consolidated Rail Corporation), and while it no longer operates trains it continues to do business as an asset management and network services provider in three Shared Assets Areas that were excluded from the division of its operations during its acquisition by CSX Corporation and the Norfolk Southern Railway. [7]

The federal government created Conrail to take over the lines of multiple bankrupt carriers, including the Penn Central Transportation Company and Erie Lackawanna Railway. After railroad regulations were lifted by the 4R Act and the Staggers Act, Conrail began to turn a profit in the 1980s and was privatized in 1987. The two remaining Class I railroads in the East, CSX Transportation and the Norfolk Southern Railway (NS), agreed in 1997 to acquire the system and split it into two roughly-equal parts (alongside three residual shared-assets areas), returning rail freight competition to the Northeast by essentially undoing the 1968 merger of the Pennsylvania Railroad and New York Central Railroad that created Penn Central. Following approval by the Surface Transportation Board, CSX and NS took control in August 1998, and on June 1, 1999, began operating their respective portions of Conrail. [7]

The old company remains a jointly-owned subsidiary, with CSX and NS owning respectively 42 percent and 58 percent of its stock, corresponding to how much of Conrail's assets they acquired. Each parent, however, has an equal voting interest. The primary asset retained by Conrail is ownership of the three Shared Assets Areas in New Jersey, Philadelphia, and Detroit. Both CSX and NS have the right to serve all shippers in these areas, paying Conrail for the cost of maintaining and improving trackage. They also make use of Conrail to perform switching and terminal services within the areas, but not as a common carrier, since contracts are signed between shippers and CSX or NS. Conrail also retains various support facilities including maintenance-of-way and training, as well as a 51 percent share in the Indiana Harbor Belt Railroad. [7]

Winston-Salem Southbound Railway

The Winston-Salem Southbound Railway is a 90-mile (140 km) short-line railroad jointly held by CSX Transportation and the Norfolk Southern Railway, which provides it with equipment. It connects with Norfolk Southern at the north end in Winston-Salem, CSX at the south end in Wadesboro, [8] and in between with NS at Lexington and Whitney, the subsidiary High Point, Thomasville and Denton Railroad at High Rock, and the Aberdeen, Carolina and Western Railway at Norwood. Originally owned jointly by the Atlantic Coast Line Railroad and Norfolk and Western Railway, [9] predecessors to CSX and NS, it was completed in November 1910. [10]

Commodities commonly carried by the railroad are grain, sand, gravel, stone, forest products, paper products, coal, coke, cement, clay fertilizer, aluminum, chemicals, iron, and steel. Its principal shippers are Corn Products Company of Winston-Salem, a manufacturer of corn syrup and related products, and Owens Brockway Glass Company of Eller, a manufacturer of glass products. [11]

P&L Transportation, Inc.

Formerly Four Rivers Transportation, Inc., P&L is based in Wilmington, Delaware. It is a railroad holding company in the United States. It is jointly owned by the management of the P&L Railway, as well as CSX Corporation, the latter of which holds a majority. [12]

Geographic divisions

CSX is organized into two operating regions: the West Region and the East Region. Each primary region is divided into two sub-regions:

East

  • Northeast Region, based in Baltimore, Maryland
  • South Region, based in Waycross, Georgia

West

  • Midwest Region, based in Cincinnati, Ohio
  • Southwest Region, based in Nashville, Tennessee

Other subsidiaries

History

Original logo for the company, emphasizing the "multiplication symbol" X Csx corp logo.svg
Original logo for the company, emphasizing the "multiplication symbol" X

CSX Corporation was formed on November 1, 1980, by combining the railroads of the former Chessie System with Seaboard Coast Line Industries. [17]

The name came about during merger talks between Chessie System and SCL, commonly called "Chessie" and "Seaboard". The company chairmen said it was important for the new name to include neither of those names because it was a partnership. Employees were asked for suggestions, most of which consisted of combinations of the initials. At the same time, a temporary shorthand name was needed for discussions with the Interstate Commerce Commission. "CSC" was chosen but belonged to a trucking company in Virginia. "CSM" (for "Chessie-Seaboard Merger") was also taken. The lawyers decided to use "CSX", and the name stuck. In the public announcement, it was said that "CSX is singularly appropriate. C can stand for Chessie, S for Seaboard, and X, which actually has no meaning." However, an August 9, 2016, article on the Railway Age website stated that " ... the 'X' was for 'Consolidated' ". [18] The T had to be added to CSX when used as a reporting mark because reporting marks that end in X means that the car is owned by a leasing company or private car owner. The company introduced its current slogan, "How Tomorrow Moves", in 2008. [19]

CSX Corporation sold two-thirds of its control of water transport company American Commercial Barge Line in 1998, citing a desire to focus more on rail operations. [20]

The founding chairman of CSX Corporation was Prime F. Osborn III of Seaboard, [21] for whom Jacksonville's Prime F. Osborn III Convention Center is named. The first CEO and second chairman was Hays T. Watkins Jr. of Chessie. Watkins was succeeded by John W. Snow as CEO in 1989 and as chairman in 1991. When Snow left the company in 2003 to become United States Secretary of the Treasury, Michael J. Ward, who then headed CSX Transportation, was promoted to succeed him. Overall in 2003, Ward took on the positions of chairman, president, and CEO. [22] When president Oscar Munoz left CSX in September 2015 after obtaining the role earlier that year from Ward, the company underwent several management changes, with Clarence Gooden appointed president. [23]

The company went through major leadership changes in 2017 when activist investor Mantle Ridge, a hedge fund that held 4.9% of CSX's stock, demanded a change in the board, that Michael Ward step down as CEO, that the company cut middle management, and that the company hire Hunter Harrison, known for leading the turnaround three other railroads, as CEO. [24] Within months of Harrison's hiring in spring 2017, several members of CSX's executive management team stepped down. Harrison died on December 16, 2017, and shortly thereafter Chief Operating Officer James M. Foote was named president and chief executive officer. [25] [26]

In March 2018, Foote, said CSX would follow-through on Harrison's plans to transform the company and move it from a traditional railroad model to a scheduled railroad model in order to reduce costs and improve the quality of service. Part of this effort includes reducing the number of locomotives in service from 3,000 in late 2017 to between 2,370 and 2,420 in 2020. The company also plans to reduce the number of rail cars it owns from 136,000 in late 2017 to between 104,000 and 109,000 in 2020. In 2017, CSX cut its workforce by 3,300 employees. In 2018, roughly 2,200 jobs were cut. A further reduction of 4,000 positions is planned by 2020. CSX estimates that after these cuts it will have a workforce of about 21,000 people.

CSX is also trying to increase profits by monetizing some of its real estate. As of early 2018, the company planned to generate $800 million by 2020 by selling off some railroad lines and other real estate. As of the same date, CSX held real estate in 23 states, the District of Columbia, and two Canadian provinces.

Officers

Presidents

  • Hays T.(Thomas) Watkins Jr. (1980 – April 1989)
  • John W. Snow (April 1989 – 2003)
  • Michael J. Ward (2000 – 2015)
  • Oscar Munoz (February 11, 2015 – )
  • Clarence W. Gooden ( – May 31, 2017)
  • Fredrik J. Eliasson (February 15, 2017 – )
  • E. Hunter Harrison ( – December 16, 2017)
  • James M. Foote (Acting: December 16, 2017 – December 22, 2017, Full: December 22, 2017 – September 26, 2022)
  • Joseph Hinrichs (September 26, 2022 [27] - Present)

Chief executive officers

  • John W. Snow (April 1989 – 2003)
  • Peter Carpenter (1992 – 1999)
  • Michael J. Ward ( – February 21, 2017)
  • E. Hunter Harrison (March 6, 2017 – December 16, 2017)
  • James M. Foote (December 22, 2017 – September 26, 2022)
  • Joseph Hinrichs (September 26, 2022 – Present)

Chairmen of the board of directors

  • Prime F. Osborn III (1980 – 1982)
  • Hays T. Watkins Jr. (1982 – January 31, 1991)
  • John W. Snow (January 31, 1991 – 2003)
  • Michael J. Ward (2003 – February 21, 2017)
  • Edward J. Kelly, III (2017 – January 2019)
  • John J. Zillmer (January 2019 – Present)

Leadership

The following is a list of CSX management [28] as of April 2024:

Finances

At the end of 2018, CSX Corporation's total shareholder's equity was reported as US$12.58 billion and total assets were valued at $36.729 billion. Total revenue for 2018 was $12.25 billion, an increase from $11.408 billion the previous year. Operating income was $4.869 billion, up from $3.72 billion in 2017, while earnings before income taxes were $4.304 billion, compared to $3.142 billion the previous year.

As of 2019, CSX Corporation was a Fortune 500 company. [29] [30]

Headquarters

The CSX Transportation Building is a 251 feet (77 meters) high-rise office building in Jacksonville, Florida. [31] Completed in 1960, the building currently serves as headquarters for CSX Corporation. [32] The building is located in the Northbank area of Downtown Jacksonville, along the banks of the St. Johns River. Its former names include the Atlantic Coast Line Building and the Seaboard Coastline Railroad Building. [33] Designed by KBJ Architects, the CSX Transportation Building is a LEED certified building and an example of mid-century modern and international style architecture. [34]

See also

Related Research Articles

<span class="mw-page-title-main">John W. Snow</span> 73rd United States Secretary of the Treasury

John William Snow is an American economist, attorney, and businessman who is the former CEO of CSX Corporation and served as the 73rd United States secretary of the treasury under U.S. President George W. Bush. He replaced Secretary Paul H. O'Neill on February 3, 2003, and was succeeded by Henry Paulson on July 3, 2006. Snow submitted a letter of resignation on May 30, 2006, effective "after an orderly transition period for my successor." Snow announced on June 29, 2006, that he had completed his last day on the job; Robert M. Kimmitt served as acting secretary until Paulson was sworn in. Snow has since worked as chairman of Cerberus Capital Management.

<span class="mw-page-title-main">CSX Transportation</span> Class I railroad system in the US

CSX Transportation, known colloquially as simply CSX, is a Class I freight railroad company operating in the Eastern United States and the Canadian provinces of Ontario and Quebec. Operating about 21,000 route miles (34,000 km) of track, it is the leading subsidiary of CSX Corporation, a Fortune 500 company headquartered in Jacksonville, Florida.

<span class="mw-page-title-main">Norfolk Southern Railway</span> American railway company

The Norfolk Southern Railway is a Class I freight railroad operating in the Eastern United States. Headquartered in Atlanta, the company was formed in 1982 with the merger of the Norfolk and Western Railway and Southern Railway. The company operates 19,420 route miles (31,250 km) in 22 eastern states, the District of Columbia, and has rights in Canada over the Albany to Montreal route of the Canadian Pacific Kansas City. Norfolk Southern Railway is the leading subsidiary of the Norfolk Southern Corporation.

Chessie System, Inc. was a holding company that owned the Chesapeake and Ohio Railway (C&O), the Baltimore and Ohio Railroad (B&O), the Western Maryland Railway (WM), and Baltimore and Ohio Chicago Terminal Railroad (B&OCT). Trains operated under the Chessie name from 1973 to 1987.

<span class="mw-page-title-main">Seaboard System Railroad</span> Defunct American Class I railway

The Seaboard System Railroad, Inc. was a US Class I railroad that operated from 1982 to 1986.

<span class="mw-page-title-main">Southern Railway (U.S.)</span> Defunct United States railroad

The Southern Railway was a class 1 railroad based in the Southern United States between 1894 and 1982, when it merged with the Norfolk and Western Railway (N&W) to form the Norfolk Southern Railway. The railroad was the product of nearly 150 predecessor lines that were combined, reorganized and recombined beginning in the 1830s, formally becoming the Southern Railway in 1894.

<span class="mw-page-title-main">Chesapeake and Ohio Railway</span> Defunct American Class I railway

The Chesapeake and Ohio Railway was a Class I railroad formed in 1869 in Virginia from several smaller Virginia railroads begun in the 19th century. Led by industrialist Collis P. Huntington, it reached from Virginia's capital city of Richmond to the Ohio River by 1873, where the railroad town of Huntington, West Virginia, was named for him.

Conrail Shared Assets Operations (CSAO) is the commonly used name for modern-day Conrail, an American railroad company. It operates three networks, the North Jersey, South Jersey/Philadelphia, and Detroit Shared Assets Areas, where it serves as a contract local carrier and switching company for its owners, CSX Transportation and the Norfolk Southern Railway. When most of the former Conrail's track was split between these two railroads, the three shared assets areas were kept separate to avoid giving one railroad an advantage in those areas. The company operates using its own employees and infrastructure but owns no equipment outside MOW equipment.

<span class="mw-page-title-main">Conrail</span> Former American Class I railroad (1976–1999)

Conrail, formally the Consolidated Rail Corporation, was the primary Class I railroad in the Northeastern United States between 1976 and 1999. The trade name Conrail is a portmanteau based on the company's legal name. It continues to do business as an asset management and network services provider in three Shared Assets Areas that were excluded from the division of its operations during its acquisition by CSX Corporation and the Norfolk Southern Railway.

<span class="mw-page-title-main">Pan Am Railways</span> American transportation company

Pan Am Railways, Inc. (PAR) is a subsidiary of CSX Corporation that operates Class II regional railroads covering northern New England from Mattawamkeag, Maine, to Rotterdam Junction, New York. Pan Am Railways is primarily made up of former Class II regional railroads such as Boston and Maine Corporation, Maine Central Railroad Company, Portland Terminal Company, and Springfield Terminal Railway Company. It was formerly known as Guilford Transportation Industries and was also known as Guilford Rail System. Guilford bought the name, colors, and logo of Pan American World Airways in 1998.

<span class="mw-page-title-main">Winston-Salem Southbound Railway</span>

The Winston-Salem Southbound Railway is a 90-mile (140 km) short-line railroad jointly owned by CSX Transportation and the Norfolk Southern Railway (NS), which provide it with equipment. It connects with NS at the north end in Winston-Salem, CSX at the south end in Wadesboro, and in between with NS at Lexington and Whitney, the subsidiary High Point, Thomasville and Denton Railroad at High Rock, and the Aberdeen, Carolina and Western Railway at Norwood. Originally owned jointly by the Atlantic Coast Line Railroad and Norfolk and Western Railway, predecessors to CSX and NS, it was completed in November 1910.


The CL&W Subdivision is a railroad line owned and operated by CSX Transportation in the U.S. state of Ohio. The line runs from a junction with the New Castle Subdivision at Sterling northwest to Lorain along a former Baltimore and Ohio Rail Road line. It junctions with the Cleveland Subdivision at Lester and the Greenwich Subdivision at Grafton.

The following is a brief history of the North American rail system, mainly through major changes to Class I railroads, the largest class by operating revenue.

Tim O'Toole is an American businessman, and former chief executive of FirstGroup.

The Savannah Subdivision is a railroad line owned by CSX Transportation in the U.S. state of Georgia. Through the middle of Savannah, the Savannah Subdivision splits into an east route and a west route. The East Route runs from Savannah, Georgia, to Ogeechee, Georgia, for a total of 15.6 miles (25.1 km). At its north end it continues south from the Charleston Subdivision and the Columbia Subdivision both of the Florence Division and at its south end it continues south as the Nahunta Subdivision. The West Route is located in Savannah, Georgia, and is 9.7 miles (15.6 km) in length. At its north end it branches off of the Savannah Subdivision East Route and at its south end it comes back into the Savannah Subdivision East Route.

The Winston and Bone Valley Railroad was a railroad line running in the Bone Valley region of Central Florida. It connected to the South Florida Railroad main line near Lakeland. A vast majority of the line remains in service by CSX Transportation, who operates it today as their Bone Valley Subdivision.

The Atlantic Coast Line Railroad's Wadesboro—Florence Line was one of the company's secondary main lines that ran from Florence, South Carolina north to Wadesboro, North Carolina. It was built in the late 1800s and large parts of it were built by the Atlantic Coast Line's predecessor companies. Parts of the line are still in service.

References

  1. ↑ Yahoo News, CSX Press Release, 'Joseph R. Hinrichs Appointed President and CEO of CSX' September 15, 2023 https://www.yahoo.com/now/joseph-r-hinrichs-appointed-president-110000569.html
  2. ↑ CSX, Press Releases, 'Joseph R. Hinrichs Appointed President and CEO of CSX' September 15, appointment effective, September 26, 2023. Outgoing James M. Foote will remain an advisor until March 31, 2023. https://www.csx.com/index.cfm/about-us/media/press-releases/joseph-r-hinrichs-appointed-president-and-ceo-of-csx/
  3. ↑ "CSX Corporation 2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 14, 2024.
  4. ↑ CSX Transportation, Jacksonville, FL. "Company Overview." Archived 2011-01-29 at the Wayback Machine Accessed 2012-12-02.
  5. ↑ Luczak, Marybeth (June 1, 2022). "CSX-Pan Am Merger Complete". Railway Age. Retrieved March 9, 2023.
  6. ↑ "Surface Transportation Board Approves CSX's Revised Merger Application to Acquire Pan Am". Surface Transportation Board. April 14, 2022. Retrieved 2023-03-09.
  7. 1 2 3 Vantuono, William C. (5 April 2016). "Conrail at 40: An experiment that worked". Railway Age. Retrieved 3 April 2019.
  8. ↑ "WS-Winston Salem Southbound Railway - The RadioReference Wiki". wiki.radioreference.com. Retrieved 2017-04-07.
  9. ↑ Interstate Commerce Commission, Twenty-Fourth Annual Report on the Statistics of Railways in the United States for the Year Ended June 30, 1911, p. 701
  10. ↑ Edward A. Lewis, American Shortline Railway Guide, 5th Edition, Kalmbach Publishing, 1996, pp. 149, 339
  11. ↑ Miller & Vaughn, "The Winston-Salem Southbound Railway Including the High Point, Thomasville & Denton Railroad" (Winston-Salem, 1996).
  12. ↑ CSX Transportation (2007). "Class I Railroad Annual Report: CSX Transportation, Inc. To The Surface Transportation Board For the Year Ending December 28, 2007" (PDF). Archived from the original (PDF) on September 10, 2008. Retrieved December 9, 2021.
  13. ↑ "Consolidated Information for Revenue Adequacy Determination" (PDF). stb.dot.gov. 2009. Retrieved 2015-11-16.
  14. 1 2 3 4 "CSX Company Organization". csx.com. Archived from the original on 2012-07-24. Retrieved 2015-11-16.
  15. 1 2 3 "Employer Status Determination - CSX Technology, Inc" (PDF). Railroad Retirement Board. 1988. Archived from the original (PDF) on 2015-09-24. Retrieved 2015-11-16.
  16. ↑ "CSX de Mexico". CSX Corporation. Archived from the original on 2010-10-01. Retrieved 2015-11-16.
  17. ↑ "CSX merger family tree". Trains . June 2, 2006. Archived from the original on July 6, 2018. Retrieved July 11, 2018.
  18. ↑ Vantuono, William (2016-09-28). "So what does the "X" in "CSX" really mean?". Railway Age. Archived from the original on 2016-09-03. Retrieved 2019-04-03.
  19. ↑ Dolinger, Milt (2006-05-01). "How CSX got its name". Trains. Archived from the original on 2008-12-09. Retrieved 2019-04-03.
  20. ↑ "CSX conveys barge unit". money.cnn.com. April 20, 1998. Retrieved 2022-11-08.
  21. ↑ "Prime F. Osborn III, 70, a railroad industry executive who founded CSX, has died". Orlando Sentinel . January 8, 1986. Retrieved 2015-11-16.
  22. ↑ Kapadia, Reshma (February 22, 2014). "CSX Boss Has Been Working on the Railroad". Barron's . Retrieved 2015-11-16.
  23. ↑ "CSX: Munoz sheds wheels for wings; Gooden elevated to President". Railway Age. September 9, 2015. Retrieved 2015-11-16.
  24. ↑ "CSX Is Cutting 1,000 Managers and Losing Its CEO". Reuters via Fortune. February 22, 2017.
  25. ↑ "CSX Announces Death of CEO E. Hunter Harrison". www.csx.com. December 16, 2017. Retrieved 2017-12-16.
  26. ↑ "CSX Board of Directors Names Industry Veteran James M. Foote President and CEO". www.csx.com. December 22, 2017. Retrieved 2018-01-28.
  27. ↑ "CSX.com - Joseph R. Hinrichs Appointed President and CEO of CSX". www.csx.com. Retrieved 2022-12-07. Board of Directors has appointed… Joseph R. Hinrichs as the Company's new President and Chief Executive Officer, effective September 26, 2022.
  28. ↑ "Company Profile & Executives". CSX.com. Retrieved 30 January 2020.
  29. ↑ "CSX Corporate Structure" . Retrieved 2019-01-07.
  30. ↑ "Fortune 500 - CSX". Fortune. Archived from the original on 2019-01-07. Retrieved 2019-01-07.
  31. ↑ "Building Profile:CSX Transportation Building". Emporis.com. Archived from the original on April 12, 2015. Retrieved 2017-01-01.{{cite web}}: CS1 maint: unfit URL (link)
  32. ↑ Taylor, George Lansing (7 July 2010). "CSX Building". George Lansing Taylor Collection Main Gallery. University of North Florida. Retrieved 2 January 2017.
  33. ↑ "CSX Transportation Building". Financial News and Daily Record . Retrieved 2016-01-01.
  34. ↑ Schaeffer, Julie (8 September 2014). "CSX Corporation's Green Headquarters". gb&d Magazine. Retrieved 2 January 2017.
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