Search
 

Growing Role of Rail Boosts CSX Capital Investment

News from railroad operator CSX Corp. underlines the growing importance of rail transport in the nation's logistics industry.

By John McCloud | Updated on October 29, 2008

JACKSONVILLE, FL-News from railroad operator CSX Corp. underlines the growing importance of rail transport in the nation’s logistics industry. The same week the company announced its Q3 earnings from continuing operations soared 40% to $382 million on record intermodal revenue, it officially launched the National Gateway, a $700 million public-private infrastructure initiative to create a freight transportation link between Mid-Atlantic ports and the Midwest.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.