Report: CSX may cancel Carolina Connector terminal

The Jacksonville, Fla.-based Class I railway may be backing away from its previously announced plans to develop an intermodal rail terminal neat Rocky Mount, N.C., according to multiple media reports.    CSX’s previously proposed plans to construct an intermodal rail terminal in Rocky Mount, N.C. may be getting scrapped, multiple media sources have reported.
   The Jacksonville, Fla.-based Class I railway revealed back in January 2016 its plans to develop the intermodal rail terminal, dubbed the Carolina Connector (CCX), in Johnston County, N.C.
   Due to community opposition, plans later changed last year for the CCX to be developed two counties over in Edgecombe County, N.C., but now it appears the project could potentially be cancelled altogether.
   CSX has been undergoing operational changes since E. Hunter Harrison took over as president and chief executive officer in March of this year. The company has implemented his precision scheduled railroading system, which is designed to maximize efficiency, but has taken heat from various shippers over service issues.
   “We understand CSX is moving to a new business model, and that it may ultimately result in a different plan for Rocky Mount,” North Carolina Gov. Roy Cooper said. “I believe in Eastern North Carolina and will keep working to show CSX that Rocky Mount is the right place for them.”
   Although CSX did not confirm or deny the potential cancellation of plans to develop the CCX, a spokesperson for the railroad told American Shipper, “Regarding the CCX, CSX appreciates the partnership we have developed with the State of North Carolina and we look forward to continuing the dialogue with the state about CCX and our plans moving forward.”
   As part of its transition to the precision scheduled railroading system, the company recently made changes to some previously offered service lanes for intermodal freight that originated or terminated in Columbus, Ohio, and Detroit, Mich.
   Meanwhile, just last Wednesday, Maryland Department of Transportation (MDOT) Secretary Pete Rahn sent a letter to U.S. Transportation Secretary Elaine Chao, informing the department that CSX will not be moving forward with the Howard Street Tunnel Project in Baltimore City, Md.
   In addition, Maersk Line just revealed Monday some specific service discontinuations, along with gate and routing changes, for select international service to and from various locations across the CSXT Intermodal Network.
   Despite experiencing a bumpy ride since implementing Harrison’s controversial precision scheduled railroading model, CSX’s net earnings and revenues for the third quarter of 2017 each ticked up 1 percent year-over-year, with the railway posting net earnings of $459 million on revenues of $2.74 billion.