Lower coal traffic forces operations cuts at CSX

The railroad is closing some of its support facilities in Kentucky and Tennessee due to a prolonged downturn in coal volumes.    A mechanical shop in Corbin, Ky. is the latest victim of the downturn in coal business for eastern railroad CSX. Tuesday’s closure announcement followed a decision last week to reduce train operations in Erwin, Tenn.
   The shops at Corbin were primarily used to maintain, inspect and service locomotives and rail cars for coal trains moving from Central Appalachia to eastern population centers. About 180 CSX employees will be let go with at least two months of pay and benefits, the Jacksonville, Fla.-based railroad said. Many furloughed employees will be eligible for jobs in higher-demand areas on CSX’s network.
   The Corbin rail yard will remain open and train operations will continue. About 100 engineering and transportation employees will remain at Corbin to support and manage the yard traffic. A small number of mechanical employees will also remain to support train operations.
   Corbin continues to be an important part of the CSX network for the movement of automobiles, consumer products and other freight.
   The combination of low natural gas prices and regulatory action by the Environmental Protection Agency and states has led electric utilities to reduce their use of coal-fired power plants, which in turn has significantly reduced coal business for railroads. CSX has seen coal revenues drop by more than $1 billion over the past four years.
   In Erwin, CSX closed a locomotive service center, project shop and car shop, and eliminated switching operations at the yard. About 300 CSX employees are affected.