slotracer We heard this was coming Monday, CSX is not communicating at all, many experienced people took the buyout and there are voids and gaps all over. HH created a lot of problems at CP and it effected us, we pulled whatever business we could, service went into the toilet and trying to work with anyone regarding flawed bills, or claims or customer service was useless. He appears to be going banannas at CSX which operates completely different from CP, as it is in the populated eastern US, lots of lines, yards major cities rail customers, nothing like CP but he appears to be out of control aggressive on this at the same time all the experience is walking out or being canned. Our sales rep cannot get anywhere on any issue as everyone he worked with in customer service or billing or claims has all left. Top 3 people in customer service took buyouts and are gone. We have had major problems at Atlanta now for going on 4 weeks, csx loses bunches of cars and we have to truck with cars lost nearly 3 weeks in Atlanta, cars taken out of route in bunches, I have nearly 20 cars held up by NS for a week as CSX won't take them so we truck again. We have already been meeting on the subject of pulling every pound of business we can off of the CSX at any of our plants. I am working on converting a 700 car a year move to truck right now. CSX in Atlanta has fallen apart this month, we cannot run a plant like this and have no idea when cars will move or if what they tell us has any shred of truth to it. HH should just retire. No idea why he dislikes hump yards, he is all about cost cutting and efficiency so why on gods green earth would he want flat switch vs a hump ?
We heard this was coming Monday, CSX is not communicating at all, many experienced people took the buyout and there are voids and gaps all over. HH created a lot of problems at CP and it effected us, we pulled whatever business we could, service went into the toilet and trying to work with anyone regarding flawed bills, or claims or customer service was useless. He appears to be going banannas at CSX which operates completely different from CP, as it is in the populated eastern US, lots of lines, yards major cities rail customers, nothing like CP but he appears to be out of control aggressive on this at the same time all the experience is walking out or being canned. Our sales rep cannot get anywhere on any issue as everyone he worked with in customer service or billing or claims has all left. Top 3 people in customer service took buyouts and are gone. We have had major problems at Atlanta now for going on 4 weeks, csx loses bunches of cars and we have to truck with cars lost nearly 3 weeks in Atlanta, cars taken out of route in bunches, I have nearly 20 cars held up by NS for a week as CSX won't take them so we truck again. We have already been meeting on the subject of pulling every pound of business we can off of the CSX at any of our plants. I am working on converting a 700 car a year move to truck right now. CSX in Atlanta has fallen apart this month, we cannot run a plant like this and have no idea when cars will move or if what they tell us has any shred of truth to it. HH should just retire. No idea why he dislikes hump yards, he is all about cost cutting and efficiency so why on gods green earth would he want flat switch vs a hump ?
slotracerSpot on Balt. HH walked away from a major bonus at CP when he abruptly left mid January. CP made some noise about merging with CSX in 2014 and tried and failed with NS in 2016. He has friends up on CP and now that he is running CSX, I expect to see another attempt to merge although UP is also rumored to be a target. He claims to take Operating ratio down to 58% in less than 18 months and the immediate and severe measures being implemented so quick seem to bear that goal out. I either see him trying to ram another merger through or earn his massive bonus and disappear to enjoy his remaining time. The remains afterwards we all will have to deal with and fix, just like up on the CP.
Hell! I could have the OR down to 0% by the end of the year - sell everything!
Never too old to have a happy childhood!
BaltACD beaulieu CSX under Hunter is going to reroute long-haul carload freight via Birmingham and thence Nashville to avoid grades out of Chattanooga on the NC&StL. Tilford Yard will only sort cars that originate or terminate in the Greater Atlanta area. Really hope there has been A LOT of capacity enhancement projects on the S&NA North between Brimingham and Nashville to support the rerouting, as well as capacity enhancement on the Lineville Sub between Birmingham and Manchester.
beaulieu CSX under Hunter is going to reroute long-haul carload freight via Birmingham and thence Nashville to avoid grades out of Chattanooga on the NC&StL. Tilford Yard will only sort cars that originate or terminate in the Greater Atlanta area.
Really hope there has been A LOT of capacity enhancement projects on the S&NA North between Brimingham and Nashville to support the rerouting, as well as capacity enhancement on the Lineville Sub between Birmingham and Manchester.
S&NA South- Notching the top of the tunnel at Parkwood to clear Double Stacks, and raising a highway bridge at Elmore for the same reason. Pelham crossover to extend double track in a roundabout way south another 6 miles.Lineville- Extension of the double track "island" at Lineville north another 8-10 miles. Pelham crossover to extend double track in a roundabout way south another 6 miles.
Spot on Balt. HH walked away from a major bonus at CP when he abruptly left mid January. CP made some noise about merging with CSX in 2014 and tried and failed with NS in 2016. He has friends up on CP and now that he is running CSX, I expect to see another attempt to merge although UP is also rumored to be a target. He claims to take Operating ratio down to 58% in less than 18 months and the immediate and severe measures being implemented so quick seem to bear that goal out. I either see him trying to ram another merger through or earn his massive bonus and disappear to enjoy his remaining time. The remains afterwards we all will have to deal with and fix, just like up on the CP.
The Hedge Fund mentality that I think I am seeing - Maximize hauling cash out of an existing business on the short term - then dump the broken shell back into the real world. No consideration for the on going nature of the enterprise.
4 trucks per car, with drop and pickup and cycling drivers. 4 trucks/drivers assigned to cycle daily distance isn't terrible and the rails have many times bumped up against or attempted to exceed the truck rates over the years so this one will probably work. This is only one plant, another up north,, looking at 2 moves over to NS about 200 cars there diverted off csx, a plant in the southeast, 2 moves to truck, 300 more cars diverted there. 2 other moves to other plants in the east that we are looking at vendor change anyway and those will come off of the csx to probably 1500 cars a year diverted off CSX this year.
Problems really started late Feb early March with the layoff/buyout of appx 1000 management personel. That was a precusror to HH coming in. The folks who took the buyout were gone off the property almost immediately leaving a large gap in experience, shutting Atlanta was somewhat official this week, but they have been trying to dry up the volume in the hump yard for 2 or more weeks now in advance of closing that yard which has created big delays, mis-routes, lost cars etc.
UP-SP....I was there to live through that, Davidson was an egotistical jerk and no matter how badly the system melted down, his ego and I'm always right attitude would not change which just worsened and prolonged the mess that was. There was even a coup attempt in 99 I believe to get him out but that failed. HH is worse, it appears he is being more aggressive at CSX than at CP and the different nature of the system has the potential for major problems for quite a while. His Ego seems out of control and he seems like he thinks I am always right no matter what and will likely refuse to listen or change and that is a bad combination.
Post above regarding a balance of investor/ vs customer is spot on. They are in business to make money but when the service you provide becomes so bad when you simply align with the investor side, volume/gross revenue shrinks as customers pull away. Good leaders mix growth with sensible cost reduction, HH did not grow CP, customers bailed to some degree, but operating ratio was improved by over the top cost cutting and now there is a mess in his wake, long story short.
I know you all love railroads, but customers bail when the rates are dictated and the entire service package declines. Inspiring shippers to despise you as a carrier is not a good strategy, they have their business to run and when the service they pay for is a negative cost vs benefit they will go somewhere else.
csxns slotracer converting a 700 car a year move to truck right now
slotracer converting a 700 car a year move to truck right now
greyhoundsBalancing the needs of investors and customers is part of senior management's job. Go too far either way and the company will suffer.
And that's been an ongoing theme in discussions of EHH - that perhaps he skews the scales over to the side of the investors, to the detriment of the customers and the employees.
Ideally, you're absolutely right. Unfortunately, we're seeing more and more looting of established companies (and not just railroads, by any means) by folks who simply want to see how many dollars they can wring out of them...
Larry Resident Microferroequinologist (at least at my house) Everyone goes home; Safety begins with you My Opinion. Standard Disclaimers Apply. No Expiration Date Come ride the rails with me! There's one thing about humility - the moment you think you've got it, you've lost it...
Wasn't it mentioned in one of these forums that the west leg of the Iron Triangle was slated for major siding additions and extensions even prior to the current CSX administration?
If so, maybe the capacity enhancements are already far in to development.
Harrison has his first kill. There will be plenty more. Service will suffer and CSX will lose customers. Initially it might look good but eventually CSX will be a mess like Harrison left at CP.
tree68Who cares, if it puts money in the pockets of the investors.... [/sarcasm]
A company competes for investors just as it competes for customers. It needs both in sufficient quantity to prosper.
The interests of both customers and investors tend to be in alingment, but there is always some conflict. The investors do well when their company is providing products or services the customers need or want at a price acceptable to the customers.
Price is an area of natural conflict. The customers want better service at a lower price, the investors want lower costs at higher prices. As long as this conflict doesn't get out of hand it's good. It keeps everybody on their toes and drives efficiency.
Balancing the needs of investors and customers is part of senior management's job. Go too far either way and the company will suffer.
I know nothing about slotracer's business in Atlanta. Simply taking his desciption of potential diversion of CSX tonnage to truck as accurate, I would amplify with this point of "risk analysis" to the efforts of EHH:
The margin for error in service quality is small. The "yield" (revenue per car) for CSX merchandise carload traffic (all CL other than coal) has risen at the compound annual growth rate (CAGR) of 4.5% for the past 16 years, easily double the general inflation rate. CSX (and the other "majors") have been touting their "core pricing strategy" for years, i.e., increasing rates at a pace exceeding inflation, and the results are clear.
As shippers evaluate their total logisitics costs, high railroad rates confounded by declining service levels make diversion decisions ever more likely.
Editor Emeritus, This Week at Amtrak
beaulieuCSX under Hunter is going to reroute long-haul carload freight via Birmingham and thence Nashville to avoid grades out of Chattanooga on the NC&StL. Tilford Yard will only sort cars that originate or terminate in the Greater Atlanta area.
CSX under Hunter is going to reroute long-haul carload freight via Birmingham and thence Nashville to avoid grades out of Chattanooga on the NC&StL. Tilford Yard will only sort cars that originate or terminate in the Greater Atlanta area.
slotracer We have had major problems at Atlanta now for going on 4 weeks,
We have had major problems at Atlanta now for going on 4 weeks,
An "expensive model collector"
Shade of the UP's buying the SP?
Johnny
slotracerconverting a 700 car a year move to truck right now
Russell
slotracerNo idea why he dislikes hump yards, he is all about cost cutting and efficiency so why on gods green earth would he want flat switch vs a hump ?
Who cares, if it puts money in the pockets of the investors.... [/sarcasm]
samfp1943 Well! In the military, a new commander has a change of Command Ceremony, and then anyone who can type immediately go to all the Standing Orders, and puts the new guy's name on them. I guess the new business protocol is to come, in and create a furor in the structure of the organization, by "turning some things over" to let everyone in the organization know there is a new Bull in the Pasture. And of Course, there was General Paton, on entering Germany with his 3rd Army... The following link is self explanatory @ .htmlhttps://www.scrapbookpages.com /EasternGermany/Buchenwald/GeneralPatton.html Guess they are going to have to fasten their seatbelts at CSX looks like their ride is getting started?
Well! In the military, a new commander has a change of Command Ceremony, and then anyone who can type immediately go to all the Standing Orders, and puts the new guy's name on them.
I guess the new business protocol is to come, in and create a furor in the structure of the organization, by "turning some things over" to let everyone in the organization know there is a new Bull in the Pasture.
And of Course, there was General Paton, on entering Germany with his 3rd Army... The following link is self explanatory @ .htmlhttps://www.scrapbookpages.com
/EasternGermany/Buchenwald/GeneralPatton.html
Guess they are going to have to fasten their seatbelts at CSX looks like their ride is getting started?
Talk about timing. I have to look, but I think it was either yesterday or today that the leading elements of the Third Army crossed the Rhine. Patton a day or two later.
Jeff
Word got out yesterday and confirmed that the Tilford Yard in Atlanta is no longer a Hump yard. Traffic needing humped will be routed away from there, the Receiving yard will be Used to hold trains with no crews, class tracks 21-40 will be taken out of service and tracks 1-20 will be used for flat switching. Superintendent was notified of his firing by the police escorts who escorted him off the property.
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