Investment Reflects Commitment to Customer Service and Confidence in Long-Term Freight Rail Demand
JACKSONVILLE, Fla. - January 23, 2013 - CSX Corporation (NYSE: CSX) today announced that it plans to invest approximately $2.3 billion in its business in 2013. The investments will support initiatives to help meet the nation's long-term demand for freight rail, improve customer service and further the company's plans for long-term profitable growth.
"The continued strong investment in CSX is a clear reflection of our desire to bring lasting transportation solutions to our customers, as well as to enable the inevitable movement of even more freight to rails," said Michael J. Ward, president, chairman and chief executive officer. Ward noted that overall growth excluding coal should be at a rate above the general economy in 2013.
Long-term increases in demand are expected to occur as the population and its consumption rise, as global trade creates the need to move more products between ports and people, as the highways become more congested, as the reindustrialization of the U.S. gains momentum, and as shippers become increasingly aware of the environmental benefits offered by rail. CSX addresses those challenges and opportunities by serving customers across a broad array of industries, including in some of the biggest and most active consumer markets in the world.
The $2.3 billion - which was outlined in the company's fourth quarter and full-year earnings presentation this morning - will fund critical network enhancements and fleet upgrades.
Many of the investments are related to long-term initiatives that give customers greater access to an increasingly interconnected global transportation network. This includes the company's National Gateway initiative creating double-stack intermodal train access between the Mid-Atlantic ports and the Midwest. The investments are also expected to include $325 million associated with the implementation of the industry's Positive Train Control program.
CSX has invested $7.8 billion in its network over the past four years. These investments are part of the company's balanced approach to capital deployment, which also includes dividends and share repurchases.
CSX Corporation, based in Jacksonville, Fla., is one of the nation's leading transportation companies, providing rail, intermodal and rail-to-truck transload services. The company's transportation network spans approximately 21,000 miles, with service to 23 eastern states, the District of Columbia and two Canadian provinces. CSX's network connects more than 240 short line railroads and more than 70 ocean, river, and lake ports. More information about CSX Corporation and its subsidiaries is available at www.csx.com. Like us on Facebook (http://www.facebook.com/OfficialCSX) and follow us on Twitter (http://twitter.com/CSX).
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