Csx gets the axe bloody early

JH

It's bad when anyone gets cut from their job.

JACKSONVILLE FLORIDA  loses 1000.

Our little Railroad town (Erwin, TN) was completely closed down by CSX about a year ago.

300 people in this small community probably was just or close to as devastating or more so since many other business were effected by them leaving beside the RR workers.. Most of us in the area are not very happy with  CSX .

I wish the best for those trying to find jobs.

Larry

I am surprised this did not happen sooner.  Maybe FEC should buy......?

Larry Sr. posted:

JH

It's bad when anyone gets cut from their job.

JACKSONVILLE FLORIDA  looses 1000.

Our little Railroad town (Erwin, TN) was completely closed down by CSX about a year ago.

300 people in this small community probably was just or close to as devastating or more so since many other business were effected by them leaving beside the RR workers.. Most of us in the area are not very happy with  CSX .

I wish the best for those trying to find jobs.

Larry

I'm sure CSX is equally unhappy with the market forces and government policies that have caused the power plant coal market to collapse. The whole raison d'être for the former Clinchfield was the movement of those black diamonds. I don't think they closed the railroad just to hurt the good people of Erwin.

Nick

I don't think they closed it for that reason either.

I guess with the loss of the coal industry it is just a case of shooting the messenger to some extent.��

Larry

How on earth can a big company like this have 1000 people in management, that they don't need and can do without? The report says current management personnel stands at about 2500.  It sounds to me like this reduction of management and overhead costs is way overdue. I feel sorry for those who will be out of work. They really need to fire the idiots in top management that allowed this bloated personnel situation to happen in the first place.

In football terms it seems like CSX is clearing space under the salary cap to sign a new QB..........

Or be acquired by NS, UP or BNSF.

Or the Beaver.  (CP)

If you follow the railroad industry in the press, you would see that the entire industry is in a slump.  Coal shipments have fallen because power plants are switching to natural gas.  The primary reason for the switch is that gas is cheaper than coal because of fracking.  It has little to do with environmental laws.

Coal is in a decline world wide.  I read last year that the last operating coal mine in England was closed.   Coal used to be one of England's largest industries and it fueled the industrial revolution.  When I was in Australia a couple of years ago, the papers were reporting about Australian coal mines closing.

Oil shipments have also decreased for the same reasons.  Natural gas is replacing oil in power plants.  Although there are more vehicles on the road, the use of gas is down because of greater fuel efficiency.  The car that used to get 18 mpg now gets 38 mpg.  New railroad engines, ships and planes are much more fuel efficient than they were just a few years ago.  

California is struggling to find money for roads.  Gas tax revenue has decreased sharply because of greater fuel efficiency and because so many people have switched to all electric or hybrid cars.  We drive more, sit in traffic jams, and still use a lot less fuel than we did 10 years ago.

Intermodal shipments are flat or down slightly.  I suppose that Americans have enough big screen TVs and other things already.  You even see shipping companies going bankrupt because there isn't enough shipments to support them.  All markets reach a saturation point at some level.  

CSX, as far as I know, was highly dependent on coal.  It is sad to see so many people at any company lose their jobs.  I wish them the best.

NH Joe

Dominic Mazoch posted:

Or the Beaver.  (CP)

I've thought about CP eventually ending up with CSX.  With Hunters first attempt not working, I guess he thought he'd get on the BOD and try it from the inside.  Then I thought.  If Hunter tries a CP end run, the deal will still come under scrutiny from all sorts of government offices.  So many were opposed to it last time, I can't imagine Hunter trying it again. But, then, its Hunter.

Steve

They mus be doing something good  Bought CSX stock last year for 26 a share and just sold it for 48