DPK gave a great link to part of the CSX problem. It all started when Mantle Ridge
and EHH (Hunter Harrison) got together. Somehow he forced his way into CSX as
CEO getting paid millions up front in an effort to "turn CSX around". CSX may not
have been making as much money as the stockholders wanted, thus the reason for
putting EHH in the hot seat. They were not doing that bad before all this from what
I've heard, just pure greed.
Once EHH was in charge he wasted no time in firing thousands of employees and closing
yards, terminals, etc. CSX and Northfolk Southern are both a complex set of railroads,
not like what he was used to at Canadian National and Canadian Pacific. In his attempt
at what he called "Precision Railroading" he created havoc all through CSX resulting in major
shipping delays, lost trains, increased dwell times in the yards, etc. It was so bad the
government and the STB had to step in.
Adding to the problem was the fact that EHH refused to release his medical records and has
since died. Now that he is gone, another one of his people is in charge trying to carry out
his work? Thousands more are expected to be fired this year, more yards closed, etc.
Tilford yard in Atlanta has been bulldozed from what I've read and Hamlet here in NC could be
next? However I have heard rumors and they are only rumors that a couple of other railroads
may be trying to purchase the Hamlet yard and/or the S Line? There are also articles
reporting that CSX is thinking about selling 8000 miles of track?
Some people say CSX may never recover from this? Others say it will, but may take years. Still
others say there might be another merger with a competing railroad though I'm sure the STB will
have the final say in that. There are a lot more knowledgeable and informed railfans out there
than me. I hope this makes some kind of sense?
Quote:
Originally Posted by muvonga
Would you elaborate on this comment? Specifically the,'meltdown'?
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