Q3 intermodal revenue for the Jacksonville-based firm, one of the nation's four largest rail freight carriers, totaled $399 million, up from a record $385 million in Q2 and $337 million in Q3 2007. Intermodal income was $97 million, up from $63 million in the same period a year ago.

At the same time, the company says it expects profits to hit only the lower part of its projected earnings guidance range for the full year due to the weakening economy. It also acknowledges intermodal revenue increases were driven primarily by increased fuel recovery and yield management rather than increased cargo. In fact, it says, freight volumes were down due to the drop in imports. Nonetheless, it expects to generate 15% to 20% operating income growth through 2010.

In regard to the National Gateway, CSX has committed $300 million to the project and will work with state and federal agencies to secure the additional $400 million of funding. The project entails enhancements to three existing rail corridors running through North Carolina, Maryland, Virginia, West Virginia, Pennsylvania, Ohio. The company says the project will provide increased rail freight capacity to and from the Midwest, reduce truck traffic and create thousands of jobs, as well as improve logistics and energy efficiency.