CSX to consolidate operating divisions

CSX announced that it plans to consolidate its US operations administration from 10 divisions to 9 divisions and close administrative offices at Huntington, West Virginia. Huntington Division administrative responsibilities are expected to be reassigned to five adjoining divisions: Atlanta, Baltimore, Florence, Great Lakes and Louisville.

CSX plans to continue to run trains over the territory, and its yards and other facilities in the Huntington region, including the Huntington locomotive shop, are expected to continue operations.

Primarily serving customers in West Virginia, Kentucky, Tennessee and Ohio, the Huntington territory encompasses the Central Appalachian coal fields, which have been significantly affected by low natural gas prices and regulatory actions. According to the announcement, over the past four years CSX’s coal revenues have declined $1.4bn. The announcement regarding restructuring is planned to contribute to CSX’s reducing structural costs and align resources with demand in its coal fields. The restructuring follows the reduction of train operations at Erwin, Tennessee and the closing of mechanical shops at Corbin, Kentucky.

CSX maintains more than 2,000 miles of track in West Virginia and handled more than 1.7m carloads of freight in the state in 2014.