JACKSONVILLE, Fla. — CSX Corporation today announced it is soliciting bids on six rail segments as part of a broader initiative to drive asset utilization, enhance network efficiency and create long-term value for the company. The decision to market these non-core properties, totaling approximately 650 miles, follows a detailed evaluation of each line and its potential to be operated more effectively by a highly qualified, third party.
The railroad is soliciting bids on these routes:
— Massena Line: Line extending north from Syracuse, N.Y. to Canada;
— Baldwinsville Subdivision: Branch line west of Syracuse, N.Y.;
— West Albany and Rensselaer, N.Y.: Collection of properties near Albany;
— Cumberland Valley: Feeder lines extending east of Corbin, Ky,;
— Eastern North Carolina: Branch lines terminating in Grangers and Plymouth, N.C.
— Marietta Subdivision: Branch line extending north out of Parkersburg, W.Va.
The company is committed to ensuring that local operators create continuity of service for customers as it seeks buyers with an interest in cultivating and growing traffic on these lines. Providing excellent service remains a priority for CSX, and no short-term impacts on customers are expected as a result of this effort.
“CSX is reviewing every aspect of the company’s network to be sure that each asset is maximized for efficiency and adds value to our company’s long-term business needs,” said James M. Foote, president and chief executive officer. “We believe these efforts will identify a robust pipeline of opportunities that will deliver material value to CSX over the next several years.”
These lines may be purchased by one buyer, multiple buyers or may not be sold at all, depending on the bids received. Prospective bidders may visit www.csx.com/lines to express their interest.
— From a CSX press release
The Kanawha River Railroad is the old WV Secondary of the NYC. That was spun into NS at the Conrail split.
The Marietta Sub is the B&O Ohio River bridge and main extending a couple miles west to a Kraton chemical plant. Plus the old line on the north bank (Ohio side) of the river to Marietta. That line serves a carbon black plant, an Elkem smelter, and an asphalt plant.
Is there anyone who didn’t see this coming? It’s a classsical way to create profit from a hostile take-over. I imagine that there will be spikes in the CSX finacial reports until the entire company is parcelled out. This is good? Surely EHH has this in mind as he inveigled himself into CSX, a once viable entity. Certainly youse remember that NS was E’s first target(thank Goodnessthat he was repelled); it’s not like he had in mind to salvage a flagging line, rather to churn and funnel money.
David Chiarella: Agreed! While reading the article, I was getting dizzy from all the corporate “spin” that was spewing forth!
The Massena line serves Fort Drum at Watertown, NY. US Govt. may subsidies it as required for national defense.
They say the Montreal secondary…..what about the line from Woodard station to Oswego NY ? I assume they include as well.
CSX as an entity is for sale. They are trimming more than property & trackage. Quality craft & management people are going elsewhere for a future. Those who are left are being bullied & forced to take up the slack. They keep the stock prices up by cutting everywhere and deferring maintenance. It is false economy and will blow up if CSX isn’t swallowed up soon.
The current CSX management team are idiots.
With all the “train talk” over the last few years I’ve come to learn that no one can deliver a more top-notch, 100% cream-of-the-crop version of corporate bullshit than a railroad executive. Anyone?
Wish they would sell the Albany-Boston line to Mass. DOT.
This is a far cry from the January announcement where Mr. Foote suggested “8000” miles should be trimmed. But, hey, it’s a start. Bet there’s been some major reconsideration to that original post. Stay tuned!
I wonder if Pan-Am would bite on the West Albany/Rensselaer chunk? Would be cheaper for them to operate since they already have serving yards in the area.
This is just the beginning. These are all clustered in two regions. If your favorite line hasn’t been targeted yet, wait them to move around the system some more.
What’s more, the line east of Massena is Grand Trunk originally. Isn’t the Marietta sub the line Watco’s Kanawha River Railroad already has rights on?
I could see CN picking up the Massena line, or at least the North end of it. Little known is that CN is the owner of the ROW between Cecile and Beauharnois, reaching their now-abandoned Ste-Martine subdivision. Strong volumes of chemicals-related traffic still originate from Beauharnois. However, the Montreal to Selkirk traffic could move via the more direct D&H Canadian Main line (Montreal – Enola NS traffic is already using this route). Would the loss of overhead traffic prove fatal to the Syracuse – Massena segment? It would certainly make the line less attractive for a potential shortline operator.