The CSX anomaly: new management on the right track?

© Wangkun Jia

Despite being quizzed by the US Surface Transportation Board following a flurry of customer complaints, US rail operator CSX is not heading towards the abyss, argues Seeking Alpha. The carrier has faced strong criticism as new chief executive Hunter Harrison enacts his precision scheduled railroading model, with the process resulting in significant reductions in train speed. While acknowledging this, Seeking Alpha argues that the carrier is up against very little competition – effectively either rival railroad Norfolk Southern or trucking – and the cost-cutting measures being employed have led to great margin expansion. This, it continues, trumps market share and operational efficiency declines.