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PROGRESS 2
J. Randolph Cheetham: CSX highlights safe, efficient rail freight service in West Virginia
With demand for service growing, CSX is adding track and terminal capacity across its system, as well as critical resources such as locomotives and rail cars.
Purchase this photoCSX will continue its proud heritage of serving West Virginia and America with safe, efficient and innovative rail freight service in 2008. West Virginia, in particular, remains an important part of the CSX network, with key customers, a division headquarters and repairs shops in Huntington. The region also is developing a reputation for outstanding technological support and research to the industry through the Rahall Transportation Institute. We now look forward to additional support from the new engineering school opening at Marshall University.
With demand for service growing during this Rail Renaissance, CSX is adding track and terminal capacity across its system, as well as critical resources such as locomotives and rail cars.
One primary example of CSX's commitment to serving America -- and West Virginia -- is the energy market. Export volume rose more than 40 percent in 2007, and the current demand in foreign countries for metallurgical and steam coals suggest that trend will continue. CSX is effectively serving new energy-related markets such as ethanol, and renewable fuels along with the company's coal, coke and iron ore businesses are among those that will benefit from further improvements in track and terminal capacity as well as service performance.
Safety and reliability are at all-time highs, and the foundation is set to maintain that momentum in 2008. CSX has reduced injuries 44 percent from 2004 to year to date, and reduced train accidents 42 percent in that same period. This is a direct result of the company's investment in track and equipment, its continued training of employees and its embrace of developing technology.
Capital investment in additional track and terminal capacity and other key resources also represents the company's commitment to better serve customers. CSX investment in 2008 is anticipated to be $1.6 billion, down slightly from 2007's $1.7 billion. Capital investment also is focused on the continued acquisition of locomotives, with approximately 100 scheduled for delivery in the first half of 2008. Car fleet investment is dedicated to repair programs, leases and purchases. Longer-range, CSX expects to invest $4.9 billion in the period 2008-2010, with fully 60 percent dedicated to infrastructure.
CSX also is discussing other potential public-private partnerships to increase capacity and competitiveness. Investments in rail capacity help ease the growing burden on the nation's highways and improve the environment.
But threats exist. Policymakers should reject misguided calls by some shipping interests to re-regulate the industry. They also should cast a wary eye on those whose short-term goals would undermine the industry's ability to serve the nation's transportation needs with additional capacity.
CSX also is committed to working with local, federal and state officials to further harden security of the nation's transportation network. CSX also has established security partnerships with New Jersey, New York, Kentucky and Maryland to share information, resources and strategies. Among other features, the partnership provides those state officials with access to CSX's secure online system to independently track the location of CSX trains and the contents of rail cars in a nearly real-time environment.
J. Randolph Cheetham is regional vice president for CSX.
