CSX (CSX) Investor Day 2024 summary

Strategic Growth Initiatives and Market Opportunities

• Emphasis on profitable growth through a proven operating model, strong team, and momentum, with a focus on industrial development, modal conversion, and customer engagement over the next three years.

• Record pipeline of hundreds of growth initiatives, including over 500 new customer sites or expansions, industrial development, modal conversion, and new customer solutions, expected to deliver strong incremental margins and add 150,000–300,000 new carloads annually by 2027.

• Major investments in network assets, including acquisitions (Pan Am, MNBR), infrastructure upgrades (Howard Street Tunnel), inland ports, and expansion of transloading and ISO tank offerings, are set to unlock 600,000–700,000 carloads of new volume over the next three years and beyond.

• Diversified growth across geographies and industries, with a robust pipeline of 540+ industrial projects and a $1.2 billion merchandise growth pipeline for 2025–2027.

• Expanding market reach through emerging industries, renewable fuels, aggregates, and waste, with projects concentrated in the Southeast and driven by infrastructure demand.

Customer Engagement and Commercial Strategy

• Focus on both top 100 customers and a long tail of 2,500 smaller customers, leveraging technology and tailored solutions to drive higher growth rates and deepen relationships.

• Merchandise accounted for over 60% of freight revenue in 2023, with volume growth outpacing the economy and peers from 2022–2024.

• Minerals and renewable fuels are key growth drivers, supported by construction activity and regulatory trends.

• Fast-growing customers are transitioning from truck to rail, facilitated by planning and infrastructure improvements.

• National account engagement and superior service are driving 4–5 million unit domestic conversion opportunities.

Intermodal and Network Expansion

• Intermodal revenue is split 60% domestic and 40% international, with growth driven by expanded market reach, conversions, and inland port strategy.

• Howard Street Tunnel project will unlock 75,000–125,000 new units, increase capacity, and enable efficient double-stack routes.

• Strategic investments in terminals and yard throughput improvements position the company for future growth and reduced wait times.

• Visible pipeline for merchandise growth is at an all-time high.

• Rice Yard in Waycross, GA, targets processing 3,300 cars/day, with ongoing improvements in speed and productivity.