The route initially was among the 8,000 miles of rail lines under review as CSX aims to cut costs and boost profitability.
But Executive Vice President of Operations Ed Harris, who joined the railroad this month, insisted on its removal from the list of lines under review, according to people familiar with the matter.
The 500-mile line segment, which serves Pittsburgh and includes the Sand Patch grade, is a core main line for CSX. It handles about two dozen trains per day and at Greenwich connects with CSX’s main line linking Chicago and New Jersey.
A CSX spokesman would not confirm the decision and claimed the list of lines under review that Trains News Wire has published was not accurate, without providing further details.
People familiar with the situation do not expect all 8,000 miles to go on the block. But they say the sheer amount of mileage placed under review – more than a third of CSX’s 21,000-mile system – is an indication of management’s desire to prune the railroad to a highly profitable core network.
“Whoa!,” Anthony Hatch of ABH Consulting says of the mileage tally. “Of course, the operative word is ‘potential,’ but that’s some serious stuff.”
It’s likely that CSX will provide greater detail on potential line sales at its investor day, scheduled for March 1 in New York City, Hatch says.
Short line consultant Roy Blanchard says there are likely candidates to operate many of the lines on CSX’s review list.
Pan Am Railways is the logical operator of the Boston cluster of branchlines. Conrail had these routes on the block before line sales were halted in the wake of the agreement between Norfolk Southern and CSX to split Conrail, he notes.
The former Louisville & Nashville between Cincinnati and Atlanta “has R. J. Corman’s name written all over it,” Blanchard says.
Carolina branch lines would be a good fit for Gulf & Ohio Railways, which operates five area short lines.
Pinsly, which operates short lines in Florida, would be a natural for CSX’s Auburndale Subdivision, he says.
“Natural fit” is a term I hate. To me it equals shutting out any new operators being considered. Many in the industry view G&W as the equal to Star Trek’s Borg. They should have the scrutiny of a Class I when taking over lines.
I expect G+W to look at buying the CSX lines in New England because they already have multiple railroads under their umbrella there. Getting CSX would join them together and cement business opportunities.
Unbelievable. People talking about who will operate what before the body is cold. Ed Harris can manage CSX as it is and begin to modify operations and encourage new business. He should be the CEO.
Mr. Landey, I am sure others can fill in more information, but the spinoffs often become better because they are interested in all business that the line can handle rather than just huge coal or intermodal contracts like the big RRs want. They are very focused on customer service and have a good sales force.
How does spinning off lines make them better railroads?
Airlines spin off feeders to low-cost carriers – which is exactly why I avoid Delta, American, United and Air Canada. Southwest – my airline of choice – flies its own planes. Real planes (B-737’s) flown by real crews (who actually are paid real money) by a real airline. If CSX thinks it can pare down to a few main lines they are so deluded they might as well re-hire Hunter Harrison’s corpse for another $84 million.
The Massena line makes much more sense going to Canadian National. It’s a bridge route that mostly handles traffic coming and going from CN, which has seen a lot of investment to bring it up to par. It’s in the route’s best interest if CSX doesn’t want it if the other primary beneficiary of it takes it over.
It could easily just wither and die under NYSW control as the line degrades thanks to limited local traffic, if Canadian National/CSX decide to interchange elsewhere such as CSX taking advantage of their D&H trackage rights. If CN owns and controls it though, they have a vested interest in maintaining it and promoting it, hopefully pulling some trucks off the I-81 corridor in the process.
How about the Massena line going to the NYSW?
Corman corp just needs to come up with a new name for any large scale regional property.
R.J. has been dead for 5 years now, keep the Corman name for the derailment and construction divisions if they want, but not for the railroads.
Please make this change soon, before the current CSX leadership takes the cue from Corman and decides to rename CSX to sound like a trucking outfit a-la J.B. Hunt, too, as the new E. Hunter Harrison Lines, after their deceased leader emeritus as well.
Dismantle Ridge?
CE MC you understand Mantle Ridge perfectly.
Mr. Landey:
Think of the airlines to answer your question. Feeder routes were shed to regional carriers – Delta to Delta Connect, etc. The Staggers Act allowed the Class 1’s to do the same; saving many a line from abandonment. Mr. Mortensen is right on in his response to you.
Mantle Ridge wants to operate paper – printed denominational paper – not a railroad – it costs money to operate a railroad and Mantle Ridge only wants to collect the profits from line sales.
Does CSX really want to be a railroad transportation system and/or just a company to sell off assets?
Hell yeah! I hope CSX lets go of the Cinci-Atlanta line. Corman could get it, or, NS could lease the line between Chattanooga and Atlanta. If they could do this, they could alleviate a boatload of bottlenecks by using the AN-District for southbound traffic and the W&A Sub for northbound trains.
I was surprised to see this line listed in “under review” article. It’s a pretty busy stretch of railroad and hosts the Capitol Limited on a portion of the route.
Does T