Rail Regulator Tells CSX to Fix Service Problems
July 27 2017 - 6:48PM
Dow Jones News
By Paul Ziobro
A freight railroad regulator called on CSX Corp. to address
"serious issues" causing delays, congestion and other problems, the
latest setback for the railway as it attempts to revamp its
operations.
The Surface Transportation Board on Thursday wrote to CSX's
chief executive, Hunter Harrison, asking that the company set up
weekly calls with it to discuss performance issues and how they are
being resolved.
"We are very troubled by the apparent lack of communication with
customers and urge your immediate attention to remedy this
situation," the regulator's three board members wrote.
A CSX spokesman said the company will provide the information
requested and "will respond fully and factually to the STB
complaint."
The board said it escalated the problems to Mr. Harrison after
receiving complaints from CSX customers about service deteriorating
during the second quarter, when Mr. Harrison began making
operational changes at the railroad. Those have included changing
routes, closing yards that sort long trains and idling locomotives
and railcars.
CSX said last week that the changes it is making will result in
a faster, more reliable railroad network.
According to the letter, however, shippers have complained of
longer and unpredictable transit times, railcars sitting in yards
for days at a time and "inconsistent and unreliable" operations
since Mr. Harrison began implementing his changes.
Other shippers are speaking out too. Last week, coal company
Murray Energy Corp. said in a letter to the board that problems at
CSX have worsened since Mr. Harrison took the helm in March. "This
situation has become absolutely intolerable and must be resolved
immediately," Chairman Robert Murray said at the time. CSX, in
response, said it disagreed with Murray Energy's statements.
On Thursday, another coal miner, Arch Coal Inc., said it too has
had problems with CSX service. "Frankly, the problems have gotten
worse in the last 10 days," Chief Operating Officer Paul Lang said
on an earnings call. He said the service issues have started to
affect coal shipments to the coast bound for export.
The changes at CSX have allowed the railway's main rival in the
Eastern U.S. rail system, Norfolk Southern Corp., to pick up some
business from CSX, Norfolk Southern executives said this week.
Write to Paul Ziobro at Paul.Ziobro@wsj.com
(END) Dow Jones Newswires
July 27, 2017 18:33 ET (22:33 GMT)
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