OPINION:
Freight railroad companies are the backbone of a thriving American economy.
Over the course of history, America’s freight railroads have proved time and time again to be critical to ensuring our nation’s economic competitiveness. Sometimes overlooked, freight railroads like CSX provide safe, efficient, economical and environmentally beneficial transportation services that are vital to communities, businesses and industries – and our way of life.
Roughly 28% of the United States’ supply chain movement depends on trains, and rail accounts for approximately 40% of the long-distance freight volume – more than any other mode of transportation. Trains also account for nearly one-third of U.S. exports by volume. These numbers tell the story about our industry being dependable, resilient, and indispensable in ensuring all other American industries can compete and thrive in a highly competitive global economy.
But the importance of freight railroads isn’t just at a broad, macro level. We know that our ONE CSX team plays an important role in every community we are proud to operate in. For example, following the tragic March 26 Francis Scott Key Bridge collapse in Baltimore that impacted our business due to the Port’s closure, we quickly pivoted and opened a new route to move diverted Baltimore imports arriving into the Port of New York and New Jersey. In a time when most affected companies furloughed employees, CSX kept people working in Maryland by moving a lot of our operations into maintenance mode, so we were able to ensure we would be ready to quickly rebound once the Port of Baltimore returned to normal operations.
With more than 195 years of combined industry experience, the team at CSX understands what’s needed to build upon our rich history and continue the tradition of safety, innovation, and service.
We know continued investments in infrastructure are what keep rail economical and, more importantly, safe. We operate almost exclusively on the infrastructure we own, build, and maintain for this reason: we want to invest and ensure our infrastructure is safe. In 2023, CSX invested $1.7 billion of a total $2.3 billion capital budget in track, bridge, and signal projects. In general, about 40 cents of every dollar earned in the railroad industry goes back into the upkeep of our tracks and railroads, making us one of the most capital-intensive industries in the nation. Even so, the American Society of Civil Engineers gives rail infrastructure the highest grade for our infrastructure conditions compared to all other transportation modes.
The rail industry in general has been investing billions of dollars every year in privately owned freight rail infrastructure. On average, the industry invests $24 billion in private capital yearly into the industry; and since 1980, our industry has invested over $780 billion into our networks. These investments result in significant improvements in service for the nation’s shippers and considerable benefits to the overall US economy. Over the last 5 years, CSX has invested almost $10 billion into its infrastructure.
An example of this dedication to infrastructure is our investment into updates for the Howard Street Tunnel that runs under downtown Baltimore. This is a public-private partnership with Maryland Department of Transportation, the federal government and CSX. With a completion date of 2027, it will modernize freight transportation, increase capacity, and help connect the different markets we serve. Beyond the benefits to freight, it’s estimated the construction will generate over 6,550 construction jobs in Maryland, and once finished, will reduce highway congestion and further improve general supply chain efficiency and freight volumes at the Port of Baltimore.
Infrastructure investments and our continued prioritization of technology are directly linked to our improvement in safety stats. We continue to implement innovative technologies to enhance safety and improve the customer experience — and we are also continuing to pursue environmental initiatives that increase fuel efficiency, reduce emissions and help our customers achieve their supply chain sustainability goals.
As an example of our focus on our own environmental commitments, CSX has pledged to reduce GHG emissions by 37.3% before 2030 and has already reduced our emissions intensity by 13% since 2014. As part of our commitment, we’re investing in advanced locomotive technologies and innovative operating practices to achieve this goal. For example, the first-ever U.S.-operated hydrogen-powered locomotive was built this year in our locomotive shop in Huntington, W.V., using a hydrogen conversion kit to convert a diesel locomotive.
Beyond that, we’re also working on future battery-electric locomotives with the Maryland Department of Transportation, thanks to an $11.6 million grant Governor Wes Moore helped to facilitate that will bring new battery-electric locomotives and a battery charging station to our CSX Curtis Bay rail terminal. But even while we’re looking to the future and investing in new technologies, we are already the most fuel-efficient mode of land-based freight transportation. A CSX train can move one ton of freight over 500 miles on a single gallon of fuel, which is 3-4 times more fuel-efficient than moving one ton of freight by truck.
Rail has powered America’s advancement for centuries. At CSX, we are proud of our history dating back to the founding of the original B&O Railroad in Baltimore in 1827. Now modernized, CSX’s rail network is an essential part of the nation’s supply chain, spanning over 20,000 route miles, connecting to 70 ports, and serving nearly two-thirds of the population east of the Mississippi River in 26 states, the District of Columbia, and two Canadian provinces. We take our vision of being the best-run railroad and our purpose of serving America very seriously, and we are committed to keeping the nation’s economy moving.
• Joseph R. Hinrichs has served as the president and chief executive officer of CSX since 2022. A leader with more than 30 years of experience in the global automotive, manufacturing, and energy sectors, he previously served as President of Ford Motor Company’s global automotive business.
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