By Alexander Whiteman
CSX released its third-quarter results, and it seems it has something to cheer about. CSX reported a strong three months, with total volumes up 5 per cent to 718,000 carloads and revenue increasing some 5 per cent to $446 million, although revenue per unit saw a marginal dip. The carrier’s international Q3 volumes were up 11 per cent, “driven by new customers and strong performance with existing customers as eastern port volumes increased”.
The strong numbers for CSX are positive news for the U.S. operator, which has faced strong criticism from the Surface Transportation Board (STB) over a perceived decline in service. Chief Executive Hunter Harrison pointed to the results as proof that CSX implementing his precision scheduled railroading model “was the right call”, despite complaints from customers and the STB. He said: “The company’s results for the third quarter reflect the resiliency of precision scheduled railroading, even during times of transition. “With that transition largely behind us, we are now intensely focused on driving superior service for our customers and lasting value for our shareholders.”
Over the nine months to September, CSX carried more than two million intermodal carloads, up 3 per cent on last year, with revenue increasing 6 per cent to $1.3 billion and revenue per unit growing 3 per cent to $625.
In contrast, CP saw intermodal volumes decline 2 per cent to 253,600 carloads, and revenue fall 2 per cent to C$342 million (US$273 million) in the third quarter. However, its nine-month intermodal revenue passed the billion (Canadian) dollar mark (US$800 million), up 3 per cent year-on-year, as volumes climbed to 1.3 million carloads, with revenue per unit gaining 7 per cent.
Reprinted courtesy of The Loadstar (www.theloadstar.co.uk)