News & Reviews News Wire CSX seeks shipper support regarding proposed Amtrak Gulf Coast service (updated)

CSX seeks shipper support regarding proposed Amtrak Gulf Coast service (updated)

By Bill Stephens | February 4, 2022

| Last updated on March 30, 2024

CEO Jim Foote asks customers to contact federal regulators

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Screen shot of portion of CSX letter
A portion of a letter to customers from CSX CEO Jim Foote, asking for their support in the upcoming STB proceeding over Amtrak service on the Gulf Coast.

JACKSONVILLE, Fla. — CSX Transportation aims to round up shipper support before a Surface Transportation Board hearing this month regarding Amtrak’s controversial quest to launch passenger service on the Gulf Coast.

In an email to the railroad’s customers, CEO Jim Foote asked shippers to sign a petition or to write to the STB directly regarding the potential negative impact Amtrak service would have on freight traffic in the absence of any capacity improvements on CSX’s single-track route linking Mobile, Ala., and New Orleans.

“We’re currently in litigation with Amtrak to make sure that this new service is not irresponsibly forced through, and could use your help ahead of a key February 15 hearing before the Surface Transportation Board,” Foote wrote.

“As way of background, the completion of a Rail Traffic Control (RTC) study has been the standard industry practice for evaluating and implementing such passenger rail proposals,” he added. “An RTC study was completed last year and showed significant impairment to freight service if no infrastructure improvements are made. Yet Amtrak proposes to begin this service without implementing those improvements.”

Amtrak has hauled CSX and Norfolk Southern before the STB, arguing that host railroads must accommodate two daily roundtrips between Mobile and New Orleans [see “Amtrak asks STB to require CSX, NS to allow Gulf Coast service,” Trains News Wire, March 16, 2021]. Amtrak has accused the freight railroads of dragging their feet on the proposed service and wanted to begin service last month.

The Federal Railroad Administration and Amtrak have been critical of the RTC study, saying it lacked details and proposed expensive capital improvements without considering potential operational changes.

CSX warned shippers about the precedent that could be set if Amtrak were allowed to begin service before necessary capacity improvements are made that would limit passenger train interference with freight trains.

“We ask that you join us in signing a petition to let the STB know that Amtrak’s current position is untenable and that the STB’s decision will have broad implications impacting service to freight rail customers across the U.S.,” Foote wrote. “If this is allowed to happen on the Gulf Coast, Amtrak could deploy this strategy wherever you ship your goods.”

As part of its ConnectUS plan, Amtrak has proposed new routes and more frequent service on existing routes. And it now has potential funding for expansion thanks to the billions of dollars it will receive under the $1.2 trillion infrastructure bill that Congress passed last year.

“The primary message to convey to the STB is the expected impact on you, the customer, and a request that the STB requires the infrastructure improvements that protects freight service so you can ensure your goods are safely and efficiently delivered to your customers,” Foote wrote.

CSX supports passenger rail, Foote wrote, and aims to provide on-time service for both Amtrak passengers and its freight customers.

Amtrak reacted strongly to the CSX appeal to its customers.

“Desperate attempts by CSX to scare their already-dissatisfied customer base is the same tactic they’ve used before: misleading their shippers, shareholders and the public,” the passenger carrier said in a statement. “It is the kind of tactic used when the facts and the law are not on their side. The upcoming STB hearing will show that Amtrak has the right to use these tracks and the Gulf Coast community deserves to have passenger rail.”

— Updated at 5:40 p.m. CST with Amtrak statement.

16 thoughts on “CSX seeks shipper support regarding proposed Amtrak Gulf Coast service (updated)

  1. Sometimes I follow an article over time mostly just to read the comments. This is one of those times.

    And I thought Amtrak had already paid for improvements on this line years ago.

  2. Bill Stephens – if the CSX PR department issues a press release that is referencing the supposed “Rail Traffic Control (RTC) study” that “showed significant impairment to freight service”, then prior to publishing their biased press release information, PLEASE request that CSX provide a link to said study so the public may fairly evaluate this claim and any formal or PR response from Amtrak or the STB. If CSX refuses to provide this information, then state that they have refused a request for more detailed information. And let Amtrak or the STB have the floor…

    All the Class 1s have drunk the PSR and quarterly share price juicing methodology and emaply a slash-and-burn mentality when dealing with customers, workers and the public. It is only because of lax or absent regulations that these hedge fund bandits are able to dictate “central planning” on a scale the CCP can only dream about to gut the railroad infrastructure at a significant cost to the public and environment.

  3. Poor, poor railroads. It just breaks my heart that they can’t squeeze a couple of passenger trains into their scheduling. Of course, not a problem if Amtrak will do some further rail and facility upgrades to keep the freights rolling.

    1. They already did. A few comments up someone mentions that Amtrak already paid for capacity improvements for the earlier Sunset Limited service – and that they had a lot more freights back then. One part of this line was sold off by CSX because there wasn’t enough traffic on it.

    2. I’m reminded of a remark many years ago in TRAINS MAGAZINE. A columnist tried to put himself, hypothetically, into the mind of a shipper — and had the hypothetical shipper asking, If the railroad can’t run a six-car Amtrak train, why should I think they can run a freight?

      Here’s another argument familiar to TRAINS readers: The number of freights is not a measure of freight service to any one customer. Suppose a railroad runs two, ten, twelve freights in each direction each day. The number of daily freights that can carry a particular shipper’s load may be one. Or two. Or maybe zero.

      I’m with the comments above. If the railroad goes begging to shippers for expressions of support, the shippers should tell the railroad to ask someone else.

  4. I would like to see the railroads return to servicing all customers that desire service as they did in the past. Then I would have no problem with government built capacity expansion. In my area, after CN bought the Wisconsin Central they stopped serving smaller customers in the region. The Stevens Point Brewery was expanding at the time and The WC was in the process of upgrading the spur for more deliveries. Canadian National came along and said a few cars a week is not enough and removed the entire spur including service to Koch Industries nearby asphalt plant. A nearly two mile bike trail is now in place and truck traffic is increased.

    1. GREGORY – Thanks for your post about your part of Wisconsin. Here’s my post about my part of Wisconsin. Drive a train on CP Rail from the Milwaukee depot through western Milwaukee County, all of Waukesha County, and into Jefferson County. Count the number of remaining shippers you pass.

      I actually don’t know the answer. Miller Beer in Milwaukee is just off the main, served from a branch. (Miller Beer receives incoming materials by rail but all outgoing product is shipped by highway.) A factory in Pewaukee receives a product that I believe is sugar. I remember a beer distributor in Wauwatosa but the siding was pulled up maybe twenty years ago. There may be others but no large number.

      Similar story on CN and UPRR in Waukesha County. There are remaining customers on both carriers but also a number of shippers who have quit. There are three electrical transformer factories in the City of Waukesha. Only one still has a rail spur.

  5. Nothing like sending out a letter to customers that’s just a straight out bald faced lie. I wonder if Jim Foote sleeps well at night knowing how much of a liar he is? Most likely yes because of how much money he makes. Unlike Chris Boza above I will not entertain calling Jim Foote, Mr. Foote, as a matter of fact, I don’t call anyone that, I call everyone on a first name basis as that was how the companies I’ve worked for all worked from the CEO on down(and those weren’t small companies either).

    1. Gerald, I worked for various municipalities since 1986. Out of respect, I always called them Mr. or Mrs. Mayor, or Mayor so and so, as I worked closely with the Mayor’s Office on many thorny issues.

      With that said, everyone below mayor was called by their first name. Old habits die hard, I guess.

      According to the American Psychological Association, Pinocchios are defined as follows: “… the phenomenon of client dishonesty (the Pinocchio syndrome). By consciously negating, concealing, or reframing conflicting ideas and emotions, the client escapes the exploration and the resulting awareness of unpleasant facts, painful realities, or prescribed wishes.”

      Yes, you are correct, he does deserve the Pinocchio Award.

  6. What happens to rail service for any shipper / receiver who does not send a letter supporting CSX? Could service get worse?

  7. Correct me if I am wrong, Amtrak ran on this trackage all the way to Florida prior to Katrina in 2005.

    So let’s see what happened since then. 1. CSX and NS rebuilt and upgraded their infrastructure east of NOLA. 2. CSX stonewalled the resumption of Amtrak.
    3. CSX spun off a portion of the Amtrak route east of Mobile and across Florida due to a lack of traffic. 4. CSX and NS embraced EHH philosophies that build consists that are larger than the antiquated infrastructure they run on.

    From Wikipedia, “As time has passed, particularly since the January 2006 completion of the rebuilding of damaged tracks east of New Orleans by their owner CSX Transportation Inc., the obstacles to restoration of the Sunset Limited’s full route have been more managerial and political than physical. Advocates for the train’s restoration have pointed to revenue figures for Amtrak’s fiscal year 2004, the last full year of coast-to-coast Sunset Limited service. During that period, the Orlando–New Orleans segment accounted for 41% of the Sunset’s revenue.[22]” “Release 06-06: NARP Urges Resumption of New Orleans-Florida Rail Service”. National Association of Railroad Passengers. May 3, 2006. Retrieved December 29, 2008.

    What I see with CSX and NS are a series of small self-inflicted wounds that have added up to serious corporate damage. The old adage of, “Death by a thousand small cuts” is apropos here. Reading his quotes, Mr. Foote is trying to deflect blame away from himself and his predecessors for those wounds and the failure of CSX to provide satisfactory customer service. It’s a typical straw man argument. He even goes on to say that allowing Amtrak to run here will degrade shipper service across the country. Once again, the straw man argument to deflect self-inflicted wounds. Mr. Foote is clearly disingenuous in his arguments.

  8. The few trains CSX runs on this route operate mostly at night. Back when the Sunset Limited ran over it there was a lot more freight traffic and but they still managed to make it work. CSX is trying to strong arm Amtrak into paying for more upgrades to its line than have already been put in place years ago by taxpayers. There pulling out all the stops with their misinformation crusade.

  9. How pitiful. CSX has already had capacity expansions in place for 17 years that were paid for with Amtrak funding. Now, they resort to whining for their customers to write letters claiming their freight will be delayed. That’s a cheap shot, big boys! If those shippers have not ridden or conducted daily train counts on this route, their letters should be ignored. CSX has plenty of capacity to allow this route to operate. Trains may be longer because the railroad is combining 2 or 3 trains into 1, therefore exposing the trainmen operating these super-trains to unsafe working conditions. Walking a 2+ mile train looking for a busted air hose is ridiculous. The trains may be longer than the sidings but the passenger train certainly is not. The freight train can easily clear the siding after Amtrak comes through. Big corporations and their greed for Wall Street profits is not the American way. The big boys at CSX need to be honest and that’s evidently not included in their request for shipper help in denying this awesome opportunity for our Gulf coast riders. I’m speaking from experience about walking the length of trains looking for defects. Arm chair observers have no clue but ya’ll will be the first to scream and holler supporting CSX and NS in this matter.

  10. Jeff, CSX runs three to four trains each way per day, plus locals, on its former L&N main between New Orleans and Mobile. Trains are often over siding length.

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