CSX (CSX) Stephens 26th Annual Investment Conference | NASH2024 summary

Network performance and service recovery

• Rapid recovery from major disruptions, including a key bridge incident and a significant hurricane, restored operations across affected regions, with only the Blue Ridge line pending full restoration by mid-next year.

• Intermodal service in the East remains strong, with recent best-in-class performance and creative network optimizations improving both service and cost efficiency.

• Volume growth is modest but improving, with international business rebounding after port strikes and domestic intermodal volumes reaching their highest levels since 2020.

Strategic initiatives and growth opportunities

• New intermodal corridors, such as the Meridian partnership with CPKC, will launch in December, opening efficient routes between Texas, the Southeast, and Mexico.

• The Howard Street Tunnel project, set for completion by late next year, will enhance network capacity and efficiency, with accelerated timelines to minimize disruption.

• Industrial development projects, especially in metals and aggregates, are expected to drive significant merchandise carload growth over the next three years, with major benefits materializing in 2025-2027.

Market outlook and segment performance

• Metals and auto markets remain weak due to interest rate sensitivity and affordability issues, but new investments and access to electric arc furnace steel production are expected to boost volumes by 2026-2027.

• Coal volumes are projected to remain flat overall, with domestic declines offset by strong international demand, particularly from India; pricing has stabilized, and inventory levels have normalized.

• Merchandise and intermodal pricing power is supported by improved service and technology, with a focus on value-added partnerships and decommoditizing the business.