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CSX: A $35 Billion Transportation Company

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Rail transportation services

CSX (CSX) and its principal operating subsidiary CSXT (CSX Transportation) are headquartered in Jacksonville, Florida. It provides an important link to the transportation supply chain through an ~21,000-mile rail network. The company’s vast network serves major population centers in 23 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec. CSX’s intermodal business links customers to railroads through trucks and terminals.

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Other entities

  • CSX Intermodal Terminals owns and operates a system of intermodal terminals—predominantly in the eastern US—and also performs drayage services
  • TDSI serves the automotive industry with distribution centers and storage locations
  • Transflo connects non-rail served customers by transferring products from rail to trucks. Its biggest markets include chemicals and agriculture.
  • CSX Real Property is responsible for the real estate sales, leasing, acquisition and management, and development activities
  • CSX Technology and other subsidiaries provide support services for the company.

CSX generated total revenue of $12.7 billion in 2014 with an operating income of $3.6 billion. The company expanded its operations at a CAGR (compound annual growth rate) of 4.4% over the past five years. It faces competition for services and price parameters. The company’s primary competition varies by commodity, geographic location, and the mode of available transportation.

The major players in the industry include Union Pacific (UNP), Norfolk Southern (NSC), Kansas City Southern (KSU), Genesee & Wyoming (GWR), Berkshire Hathaway (BRK-B), Canadian Pacific Railway Limited (CP), and Canadian National Railway (CNI). Together, these companies form 9.30% of the Industrial Select Sector SPDR Fund (XLI).

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