What is happening: The CEO of CSX, Jim Foote, has refused to rule out a merger with another Class I railroad.
Why is this happening: Foote was asked whether he would join up with the likes of Union Pacific or Norfolk Southern in order to help them implement PSR. In return, CSX could secure talent from competitors.
What is PSR: PSR stands for precision scheduled railroading. Union Pacific and Norfolk Sothern recently announced they would start using some principles of the model. CSX implemented the model recently under the guidance of the late Hunter Harrison.
What did Jim Foote say: “I am of the camp we’d have to weigh the two and see if there was true value that came out at the end of the day. To do that you need two willing partners to dance. I have been in the business a long time and I think there were 50 Class I’s when I started. And one could make the argument that another consolidation would prove beneficial from a pragmatic standpoint.”
What did Union Pacific CEO Lance Fritz say: “When you think about the expertise that we have in-house on PSR, we do have employees, some at high levels like a Cindy Sanborn who is now going to be running the entire northern region of the network, along with others, particularly in the operating team and also in the network planning and optimization team who have experience and in some cases deep experience in PSR.”