Eastern Railroad Discussion > CSX COO Harris: DP, Run-throughs, Shortlines, Directional Running

New CSX COO Ed Harris took part in the Earnings Conference Call of January 16.
He took the opportunity to present a bunch of teasers of what he may be planning.


More distributed power capability.
“We’re already starting our coal service more effectively with distributed power”.

“I’m also a big proponent of run-through interchange, especially in a terminal like Chicago.”

“Running directly back into the UP and BN.”

“Trying in all of our efforts to stay out of the Belt,
only because we’re giving up two days worth of cycle when we do that.”

He pointed to his recent role as Executive Chairman of the Board of Omnitrax, which he has now resigned.

“Wouldn’t rule out the use of shortlines for a short-cut route”

“Wouldn’t rule out the use of partnering with our other Class 1 partners or carriers,
just to take advantage of maybe an opportunity to do some directional running.”

“running long trains directionally with our network.
We’ve got a lot of options, maybe too many options.”


Later in the call, executives discussed future capital expenditures.

They said that about 20,000 railcars and about 900 locomotives are currently idle,
and there no plans to purchase either.

They are considering investing in more distributed power capability.

Also, they may consider strategic siding extensions in the future.
They said that current train lengths do not exceed current siding lengths,
but with further increases in train length, longer sidings may be necessary.

OmniTrax also hard lined the Canadian government on the tracks to Churchill. No business, no need to repair them and return the tracks to service.

A few weeks ago, I asked about CSX's reluctance to use distributed power more widely, especially on its monster trains. Looks like Harris may be doing the same.

Marcus

> They said that current train lengths do not exceed
> current siding lengths,
> but with further increases in train length, longer
> sidings may be necessary.

Oh really? Certainly not true everywhere. The other night I heard P370 do a see-saw maneuver with Q327 (if I have that symbol right) because 327 was too long for the siding. I think it has been reporting that 850/851/50/51 often face delays in Indiana for the same reason. And surely there are other places where siding are 8-10k but they are running longer than that.

Posted from Android

Found the quotes about siding extensions,

Ed Harris, COO,

“If I see any capital spend, it may be in some siding extensions. That would be it.
But, quite frankly, our average train length is less than our siding length as it is today.
We still need to be pushing train length, train capacity, and then we start watching delays if we get into that.”


James Foote, CEO,

“If we need to extend sidings, we’ll do it smart, and we’ll use rail from other locations.”

I really don't see anything innovative here.

Victor A. Baird
http://www.erstwhilepublications.com

wabash2800 Wrote:
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> I really don't see anything innovative here.

110% fitting! That cogent one-liner applies in the widest (and strongest) possible terms. CSX might eventually wear that as its epitaph.

I read through the CSX earnings call transcript on Seeking Alpha (what a decrypting exercise that was trying to decode the typos!) and saw nothing with regards to the sales of unwanted CSX lines to short lines or others (one of railfans' favorite topics!).

There was a lot of teasing re: more detailed content to be presented in the upcoming March 1 investors conference in NYC (eg, top line revenue expectations/CAGRs by business unit, transportation/engineering/mechanical department strategies and initiatives, 2018 Cap Ex direction specifics)

Here's the URL to CSX earnings call transcript: https://seekingalpha.com/article/4137905-csxs-csx-ceo-james-foote-q4-2017-results-earnings-call-transcript?part=single

Marcus Wrote:
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> New CSX COO Ed Harris took part in the Earnings
> Conference Call of January 16.
> He took the opportunity to present a bunch of
> teasers of what he may be planning.

>
> “I’m also a big proponent of run-through
> interchange, especially in a terminal like
> Chicago.”
>
> “Running directly back into the UP and BN.”


Yeah, I am sure the BNSF and UP want a bunch of
trains they will have to immediately switch because
you shut down all the hump yards that could properly
block the trains.


>
> “Trying in all of our efforts to stay out of the
> Belt,
> only because we’re giving up two days worth of
> cycle when we do that.”


This is amazing because a few months ago when EHH was in a fervor to
shut down Barr Yard the BRC was going to be the solution to all the problems.

Someone please explain what this dotard babble means: "we’re giving up two days worth of
cycle"

I don't think many tears would be shed at the BRC if they never saw another CSXT train.



Harris, like all in the EHH clique saw an opportunity to collect yet another railroad
pension and will say anything the investors want to hear.

Clearing Yard (BRC) is a monster yard, which ends up delaying freight by 48 hours: entry time, classification time, etc. That said, run-through trains from Willard to North Platte are not easily done either. Avon to North Little Rock or Kansas City is easier. Avon to Galesburg (BNSF) is possible via the TP&W.

TP&W may yet emerge as a key player in the Chicago drama. Who controls it now?

Lackawanna484 Wrote:
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> TP&W may yet emerge as a key player in the Chicago
> drama. Who controls it now?


Genessee &Wyoming.

PRR_4859 Wrote:
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> Lackawanna484 Wrote:
> --------------------------------------------------
> -----
> > TP&W may yet emerge as a key player in the
> Chicago
> > drama. Who controls it now?
>
>
> Genessee &Wyoming.

Thank you

MEKoch Wrote:
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> Clearing Yard (BRC) is a monster yard, which ends
> up delaying freight by 48 hours: entry time,
> classification time, etc. That


said, run-through
> trains from Willard to North Platte are not easily


> done either. Avon to North Little Rock or Kansas
> City is easier. Avon to Galesburg

(BNSF) is
> possible via the TP&W.



Smithboro Illinois would be your connection point Avon to Galesburg.

Posted from iPhone

MEKoch Wrote:
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> Clearing Yard (BRC) is a monster yard, which ends
> up delaying freight by 48 hours: entry time,
> classification time, etc.

Actually it is a well laid out side by side hump yard.
Dwell time (time car received to departed) is around 24 hours.

Like any other yard it only holds so many cars at one time. When an owner
road is told to spread out the arrival time of x number of 9000' trains by 3 hours
and said owner runs them back to back there will be issues. When owner road
does not get its power serviced at the BRC shop and outbound crews find their
power is split up and located in 3 separate locations within the yard (where owner's
inbound crew left them) there will be delays. When operating discipline has declined
within an owner's organization to the point where one crew cannot make a round trip
with a transfer between Blue Island and Clearing within the hours of service it is a reflection
on the owner. Such organizations are ripe for takeover by finger pointers such as EHH.

Ownership in the BRC is worth its weight in gold to dysfunctional railroads. It may be endlessly mined
to provide cover stories. "We are going to streamline operations and put scores of crews on the street
by closing yards and moving traffic to the BRC"; "We are going to improve operations by getting out of
the BRC"; you fill in the blanks.

In the end, after they have turned their main lines into a parking lot for dead trains, they always make the
call: "Hello BRC, can we send you some trains, we really need you to take some trains, we will do
anything for you, can you take our trains?"

It WOULD be truly innovative to share track with NS in areas (and there are quite a few in the south) where each road has a route to the same place. Implement directional running in order to eliminate siding extensions. Cobble together the short route from point A to point B from both road's lines. This is innovative, this is efficient, and it's a way to actually TRY to compete with trucks. Atlanta to Savannah is one example--there are a HUGE amount of containers drayed between the two. Yeah, it's "too short" to make money, but one can always hope--especially if you gotta drive the roads around Atlanta or Macon.

The deal with all those so called excess routes is that many are full of customers. They make money. You can't make money without customers.

Why would Willard to North Platte be difficult?

NYC6001 Wrote:
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> The deal with all those so called excess routes is
> that many are full of customers. They make money.
> You can't make money without customers.

Yes. Serving these customers well is what distinguishes many short lines.

They can make money, serve customers, and deliver train loads of cars to the major lines on time.

JGFuller Wrote:
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> Why would Willard to North Platte be difficult?

Because it will be up against the daily (weekdays) Chicago Metra commuter rush,
perfectly called a "scheduled service interruption" by TO member Englewood.

When I was dispatching at CSX six years ago, a hot train ran daily between
Selkirk, I believe, and near Hinkle, Oregon. It was hot until it passed
Brighton Park, then usually sat for hours at the UP connection at 16th street,
Chicago, waiting for the "fleet" to end, and then more hours for the crew to arrive.
Anything else headed for the UP would usually die somewhere behind it, blocking
yet more of the B&OCT. The dominoes fall quickly on the Blue Island Sub.



Edited 1 time(s). Last edit at 01/18/18 01:03 by Seventyfive.

Always good to have in-the-field observations!

Are there other routes that such a train could use? IHB?

Could it be timed to avoid the commutes? [You know, Precision Scheduled Railroading.]

Do trains to/from Global I face this same issue?