This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

CSX CEO To Harvard Business School: CSX Meeting Growing Transportation Demand, Strengthening American Competitiveness

Stocks in this article: CSX

JACKSONVILLE, Fla., Feb. 27, 2014 /PRNewswire/ -- America's freight railroads are investing in facilities, technology and programs to meet the country's growing consumption and transportation needs, CSX (NYSE: CSX) chairman, president and chief executive officer Michael Ward told an audience of more than 200 business and policy leaders at a Harvard Business School (HBS) panel today.

The panel, "What Moves U.S.," is part of the "America on the Move: Transportation and Infrastructure for the 21st Century" National Summit hosted this week at HBS. The panel included leaders from the public and private transportation sectors who explored issues related to balanced regulations; opportunities for connectivity, safety and sustainability; and the impact of transportation, particularly benefits and challenges for intermodal, as the global supply chain evolves.

"CSX is up to the challenge of meeting our customers' increasingly high expectations while creating jobs, rebuilding transportation infrastructure, and supporting global competitiveness for American businesses," Ward said. "The nation's freight railroads have literally transformed in the nearly 35 years since they were partially deregulated, but there's still much to do to fully realize the economic and environmental advantages of freight rail transportation."

To continue leveraging those advantages, CSX plans $2.3 billion in capital investments in 2014 as the company builds for long-term growth and continues to deliver value for customers and investors. CSX has invested more than $14 billion since 2005 in making its network the safest and most efficient means of transportation in the east. Long term, CSX plans to invest 16 to 17 percent of revenue into the business each year – a combination of investments in core infrastructure and assets with strategic capital to support profitable growth – plus an overlay for the positive train control system.

CSX investment in 2014 and beyond will support the company's intermodal business, a major growth driver based on the environmental and efficiency benefits of connecting ports with inland consumption centers while taking long-haul trucks off of America's congested highways. It is estimated that approximately 9 million truckloads in the Eastern U.S. are candidates for conversion to intermodal rail service. Priorities for CSX in 2014 include the construction of new facilities in Florida and Canada, and expansions of other facilities across the network.

Today, more than 90 percent of CSX intermodal traffic travels over double-stack cleared routes, which can carry double the freight on the same number of rail cars. That number will rise to the mid-90s in the next several years when CSX completes the National Gateway, the company's public-private partnership designed to increase the flow of freight between mid-Atlantic ports and Midwestern consumption centers via double-stack intermodal service.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs