CSX (CSX) Baird 2024 Global Industrials Conference summary

Structural advantages and network optimization

• Network serves two-thirds of the U.S. population, offering significant growth potential and operational flexibility.

• Recent re-engineering has reduced train starts, creating capacity for growth at 50%-70% incremental margins.

• Focus on making the network more linear and efficient, leveraging diverse commodities and condensed volume.

• Eight key locations identified for further optimization, with ongoing efforts to reduce out-of-route miles and double handling.

• Surge capacity and resiliency being built into major terminals like Waycross to handle volume fluctuations.

Culture and workforce development

• Emphasis on a culture of accountability, empowerment, and cross-functional collaboration to drive efficiency.

• Customer partnerships have improved due to cultural transformation, leading to new business opportunities.

• Low attrition and hands-on training programs are prioritized to build a skilled, engaged workforce.

• Senior leaders are directly involved in frontline supervisor development and talent identification.

Technology and operational improvements

• Investments in technology provide real-time data visibility and machine learning for operational decisions.

• Automation in yards considers multiple variables for efficiency, reducing manual intervention.

• Technology enhancements support both customer experience and internal process improvements.