Eastern Railroad Discussion > CSX makes it official -- Blue Ridge Subdivision reopened

Again, the title of the thread says it all.  I'm providing the link to the official press release for those interested.

One year after Hurricane Helene, freight trains return to the Nolichucky Gorge

Steve Angels comment shouldn't have even been included in the press release. This was Henrichs baby and wouldn't have even been done had Angel been in charge.

“wouldn't have even been done had Angel been in charge.”

How do you know that? Is that your opinion?

Posted from iPhone

Folks are painting his replacement as merger happy and not interested in things like capital development and growth that Henrich was interested in. Henrich is quoted as not interested in merger. :"Reportedly", he was shown the door because of that, perhaps like the STB board member was for the same reason. I quote "reportedly".

Victor Baird


JOHNY5ALIVE Wrote:
-------------------------------------------------------
> “wouldn't have even been done had Angel been in
> charge.”
>
> How do you know that? Is that your opinion?
>
> Posted from iPhone



Edited 1 time(s). Last edit at 10/02/25 13:32 by wabash2800.

wabash2800 Wrote:
-------------------------------------------------------
> Folks are painting his replacement as merger happy
> and not interested in things like capital
> development and growth that Henrich was interested
> in. Henrich is quoted as not interested in merger.
> :"Reportedly", he was shown the door because of
> that, perhaps like the STB board member was for
> the same reason. I quote "reportedly".
>
> Victor Baird
>
>
> JOHNY5ALIVE Wrote:
> --------------------------------------------------
> -----
> > “wouldn't have even been done had Angel been
> in
> > charge.”
> >
> > How do you know that? Is that your opinion?
> >
> > Posted from iPhone


Not really the whole story. I’m not saying or implying Uncle Joe wasnt personable and he did make a great effort to improve employee morale and engagement. But as a CSX employee myself when I take a step back and take the emotional shock and awe out of the equation and really look over the situation I can definitely see why the change was made. I do definitely agree it was poorly handled, managed, executed the way Joe was let go. The truth is CSX has had declining revenue, profit, car loads since his tenure with increased spending with really not much to show for it. Employee engagement is great, multiple million dollar new digital signage on company headquarters is nice, giving away four new F-150’s twice a year is nice, family days is nice, making multiple million dollar donations to communities and to museums is nice, paying a secretary to update and respond to people on your behalf on LinkedIn is nice. Flying all around to make for photo ops is nice but in today’s world none of that really drives a company forward financially especially when your financials are going the other (wrong) way. I probably wouldn’t have rebuilt the Blue Ridge sub back either or at least not the break neck speed which further increased costs. In reality that line is NOT crucial right now. If the railroad can operate just fine with that line closed and the Howard Street tunnel closed….. then was it really needed?? Especially if no new business or traffic flows are coming? Joe’s message was getting old and tired. ONECSX this and that but reduce and eliminate all overtime, then no overtime on yard jobs, local jobs even if the customer WASNT serviced, no local discretionary spending, annul road trains for volume, eliminate jobs (mostly salary positions), etc…. When companies and when most people have declines in revenue or a smaller paycheck coming in they reduce discretionary spending…

Oh and I forgot about multiple million dollar, multiple year safety consultant that was hired to make the railroad and it’s employees better on the safety front but even that hasn’t worked out, our safety performance has actually deteriorated.

If CSX is looking a merger or not the truth is change was needed. Some may strongly disagree with me but that is okay. Truth is Ancora’s letter did have some facts and brought up some good questions or concerns. Just remember Ancora isn’t the only activist group involved trying to get what they want out of CSX right now.

Uncle Joe wont be in the soup line anytime soon… he walked away with at least a 8 digit pay out in his pockets.

And lastly who exactly is CSX supposed to merge with? BNSF offically on record saying they dont want to merge with CSX and basically so has the CN. I don’t believe Uncle Joe actually ever officially stated CSX or himself was against a merger. He did go Omaha and was basically rebuffed.



Edited 5 time(s). Last edit at 10/02/25 16:08 by JOHNY5ALIVE.

JOHNY5ALIVE Wrote:
-------------------------------------------------------
> But as a CSX employee myself when I
> take a step back and take the emotional shock and
> awe out of the equation and really look over the
> situation I can definitely see why the change was
> made.

Maybe the new CEO will make your job more interesting....

The CEO would rarely actually write or say the quotes in press releases.  That is all done by the PR Department and the CEO reviews and give the OK to send it.

cockaboose Wrote:
-------------------------------------------------------
> Steve Angels comment shouldn't have even been
> included in the press release. This was Henrichs
> baby and wouldn't have even been done had Angel
> been in charge.

Ticeska Wrote:
-------------------------------------------------------
> JOHNY5ALIVE Wrote:
> --------------------------------------------------
> -----
> > But as a CSX employee myself when I
> > take a step back and take the emotional shock
> and
> > awe out of the equation and really look over
> the
> > situation I can definitely see why the change
> was
> > made.
>
> Maybe the new CEO will make your job more
> interesting....

Maybe…. Can’t be any worse than the LAST 4 CEO’s within the last 8 years.



Edited 1 time(s). Last edit at 10/03/25 08:50 by JOHNY5ALIVE.

JOHNY5ALIVE Wrote:
-------------------------------------------------------
> Ticeska Wrote:
> --------------------------------------------------
> -----
> > JOHNY5ALIVE Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > But as a CSX employee myself when I
> > > take a step back and take the emotional shock
> > and
> > > awe out of the equation and really look over
> > the
> > > situation I can definitely see why the change
> > was
> > > made.
> >
> > Maybe the new CEO will make your job more
> > interesting....
>
> Maybe…. Can’t be any worse than the LAST 4
> CEO’s within the last 8 years.

Wanna bet!?!?  As a career railroader with almost 30 years of service, everytime I thought that, it wasn't long before I learned just how much worse it can, and often does, get.

Ticeska Wrote:
-------------------------------------------------------
> JOHNY5ALIVE Wrote:
> --------------------------------------------------
> -----
> > Ticeska Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > JOHNY5ALIVE Wrote:
> > >
> >
> --------------------------------------------------
>
> >
> > > -----
> > > > But as a CSX employee myself when I
> > > > take a step back and take the emotional
> shock
> > > and
> > > > awe out of the equation and really look
> over
> > > the
> > > > situation I can definitely see why the
> change
> > > was
> > > > made.
> > >
> > > Maybe the new CEO will make your job more
> > > interesting....
> >
> > Maybe…. Can’t be any worse than the LAST 4
> > CEO’s within the last 8 years.
>
> Wanna bet!?!?  As a career railroader with almost
> 30 years of service, everytime I thought that, it
> wasn't long before I learned just how much worse
> it can, and often does, get.

We are both in the same boat… I also have 30 years.

Posted from iPhone

> Not really the whole story. I
>
> If CSX is looking a merger or not the truth is
> change was needed. Some may strongly disagree with
> me but that is okay. Truth is Ancora’s letter
> did have some facts and brought up some good
> questions or concerns. Just remember Ancora
> isn’t the only activist group involved trying to
> get what they want out of CSX right now.
>
>
> And lastly who exactly is CSX supposed to merge
> with? BNSF offically on record saying they dont
> want to merge with CSX and basically so has the
> CN. I don’t believe Uncle Joe actually ever
> officially stated CSX or himself was against a
> merger. He did go Omaha and was basically
> rebuffed.

33 years myself.  I agree with a lot of what you said. But where I depart is what I left quoted here.  Angel was brought in for one reason and one reason alone.  Find a merger partner.  Look at his contract.  To boil it down - we'll pay you $1.5 million salary plus $13.5 million in stock bonuses if certain targets are met, and another $10 million in three years if targets continue to be met. BUT, if we merge with someone, we'll triple it.   Tells me the board wants a merger, have hired a merger expert as the new CEO, and are heavily incentivizing the new CEO merger expert to merge.  "Who exactly is supposed to merge with."   That's not our problem to figure out.  The board of directors are willing to pay Angel $75 million to figure that out.  



Edited 2 time(s). Last edit at 10/03/25 19:21 by scraphauler.

---

Very good points Scrap, I hadnt seen that article. Thanks for sharing!

Posted from iPhone

Very similar in tone and content to the deal the ITT board gave CEO Rand Araskog back in the 1990s.

He hit the marks, broke up the company, made a bundle, and started a trend. Made the share owners a lot of money, too.

The Board wants the company sold. Expect the investment and capital expenditures priorities will change.

Posted from Android

CSX will NOT be disadvantaged by UP NS merger...they will melt down fast and so fully that customers will beat a path to our doors....we (CSX and BSNF stand to win no matter what happens...

I believed all along (and still do) that rebuilding the Blue Ridge Subdivision was 100% optics. The line was/is clearly not essential to CSX's operations. But as a good "corporate citizen" CSX (and NS) couldn't stand the optics of walking away from the region after Helene decimated the area.

CSX (Joe) jumped at the chance for some good PR and NS had to follow. Both railroads could have easily let Helene wash away the case for maintaining their operations in the region and left it to the state of North Carolina (and possibly the Federal government to a lesser extent) decide at what level, if any, railroading would return to the region.

My opinion only, take it for what you will.

Mike Derrick

Posted from Android



Edited 1 time(s). Last edit at 10/06/25 05:00 by ShortlinesUSA.

ShortlinesUSA Wrote:
-------------------------------------------------------
> I believed all along (and still do) that
> rebuilding the Blue Ridge Subdivision was 100%
> optics. The line was/is clearly not essential to
> CSX's operations. But as a good "corporate
> citizen" CSX (and NS) couldn't stand the optics of
> walking away from the region after Helene
> decimated the area.
>
> CSX (Joe) jumped at the chance for some good PR
> and NS had to follow. Both railroads could have
> easily let Helene wash away the case for
> maintaining their operations in the region and
> left it to the state of North Carolina (and
> possibly the Federal government to a lesser
> extent) decide at what level, if any, railroading
> would return to the region.
>
> My opinion only, take it for what you will.
>
> Mike Derrick
>
> Posted from Android

While I agree the Clinchfield was not essential, and wasn't a major reason the operating metrics went into the toilet (Howard Street Tunnel bears a lot of that blame), I do think the Clinchfield is a very good route for the many bulk trains (grain, ethanol, and coal) heading southeast.

Keeping that traffic off Chicago-Evansville-Nashville (and out of Atlanta if routed via Cincinnati and Knoxville) is a good way to grow carload and IM through better service and more reliable schedule keeping by freeing up capacity and throughput.