Letter comes in the midst of a potential second round of layoffs.
JACKSONVILLE, Fla. – Its bottom-line numbers have been good recently, but the government is warning Jacksonville-based rail giant CSX that it’s on the wrong track.
A letter from the Surface Transportation Board in Washington directly to CEO E. Hunter Harrison brings up numerous complaints from CSX customers. In it, the STB cites markedly deteriorating service during the second quarter of 2017, a timeframe in which CSX recently boasted profits exceeding 2Q16 by nearly 15 percent.
“In particular,” the letter reads in part, “shippers have complained that transit times have increased significantly and/or become unpredictable…”
This letter comes days after an announcement of a potential 700 more layoffs at the company, following a 1,000 person workforce reduction in the spring.
The scolding cites railcars sitting idle for days at railyards, unreliable switching operations, and inefficient routes, among other things. It also specifically notes congestion in gateway hubs New Orleans and St. Louis.
“I thought we had a hell of a quarter,” Harrison said during CSX’s July 18th earnings conference.
The less sanguine review from Washington comes less than four months into Harrison’s tenure as CEO after he left a similar position at Canadian Pacific Railway. CSX has been trimming costs by reducing headcount – a work in progress that at times has hinted…