United Continental Holdings Inc’s new chief executive officer has suffered a heart attack, a person familiar with the matter said on Friday, barely a month after he took on the job of improving the airline’s profitability and reputation.
The board at United – the No. 2 U.S. carrier by capacity – was informed “promptly” after Oscar Munoz was taken to hospital, the person said.
“There’s no reason for the board to meet,” the person said. “We’re still gathering information about his medical condition and prognosis.”
United’s previous chief executive left while federal authorities were conducting an investigation involving the Port Authority of New York and New Jersey.
Motorists’ wait time at U.S. rail crossings may double as CSX Corp. hooks trains together to boost efficiency amid plunging demand for coal shipments.
Bulk cargo is the latest focus in CSX’s effort to improve productivity. Getting more cars behind the locomotives is one way to do that — even if a longer, heavier load spends more time on the tracks.
“We’re actually combining two long trains” in some coal markets, Chief Executive Officer Michael Ward said in an interview Wednesday, Oct. 14. “Some of the trains can get to a couple of miles long.”
JACKSONVILLE, Fla. – As CSX works to match its resources to a changing business environment, the company today announced the reduction of train operations at Erwin, Tennessee.
The decision, the result of significantly reduced coal traffic through the region, includes closing a locomotive service center, project shop and car shop, and eliminating switching operations at the Erwin yard. Approximately 300 CSX contract and management employees who work at the facilities and in support roles will be affected.
MONTGOMERY, W.Va.— The Federal Railroad Administration (FRA) today announced the cause of the February 16, 2015 CSX/Plains All American derailment in Mount Carbon, W.Va. The accident resulted in 27 derailed cars, a fire that ignited immediately and eventually burned for days and the evacuation of hundreds of local residents.
FRA was the lead agency tasked with responding to and investigating the February accident. Following a thorough investigation, the FRA announced the cause of the derailment to be a broken rail, resulting from a vertical split head rail defect. The defect that eventually resulted in the derailment was missed by CSX, and their contractor, Sperry Rail Service, on two separate inspections in the months leading up to the accident.
In addition to announcing the cause of the derailment, FRA also provided a path forward to prevent similar rail-caused accidents in the future:
The agency announced it will release a Safety Advisory, which urges closer and more detailed inspections where defects and flaws are suspected, and stronger training for rail inspection vehicle operators
FRA announced it will explore the need for rail-head wear standards and potentially require railroads to slow trains or replace a rail when certain conditions pose a safety risk
FRA secured a commitment from CSX to require internal rail flaw operators to review previous inspection data alongside real-time data in order to assist in identifying conditions and flaws that have changed or worsened between inspections
“Our country relies on the safe transportation of large quantities of energy products across the nation, and it is our responsibility to require operators to implement strict safety standards,” said U.S. Transportation Secretary Anthony Foxx. “FRA’s findings and action today should make it clear to rail operators that we will do exactly that.”
The cause of the derailment – the vertical split head broken rail – was missed in at least two separate rail inspections in December 2014 and January 2015. Data from both inspections show evidence of the defect, but neither CSX or CSX’s contractor, Sperry Rail Service, discovered the defect which led to the broken rail. FRA has issued $25,000 fines against both CSX and Sperry Rail Service for failure to verify a potential rail defect.
The broken rail was also near the location of a previous broken rail discovered by an FRA inspector and repaired in May 2014.
“When we see a need for action, we will take it, and that is what FRA is doing today. Broken rail is one of the leading causes of accidents. Railroads moving crude and other hazardous materials through and alongside communities bear significant and special responsibility. All railroads, not just CSX, must be more diligent when inspecting for internal rail flaws or when contracting out inspection work,” said FRA Acting Administrator Sarah Feinberg. “This is just our latest effort to increase the safe transportation of crude and other energy products.”
Over the last two years, the U.S. Department of Transportation (DOT) has taken more than two dozen actions to improve the safety of the transport of crude and other flammable liquids. In May 2015, DOT released its final, comprehensive rule that raises the bar on the safe transportation of flammable liquids by rail. The rule requires stronger tank cars and a better, faster, more efficient braking system – electronically controlled pneumatic (ECP) brakes. ECP brakes can reduce the distance and time needed for a train to stop and keep more tank cars on the track in the event of a derailment. The DOT rule also supplements FRA’s actions to add an Automated Track Inspection Program car to inspect crude routes, focus track inspectors on crude routes via our CORETEX program, and secure voluntary agreements from railroads to inspect track more frequently than current regulations require.
Safety inspectors from the state Department of Transportation and the Federal Railroad Administration uncovered 95 defects in their most recent examination of rail cars and tracks across upstate New York, Gov. Andrew M. Cuomo announced Monday.
Four of those defects, all on CSX mainline track west of Albany, were considered critical, requiring immediate attention, according to the governor’s office. Two were found between Fonda and Amsterdam, while one was found on the track between Fonda and Rome and another in Marlboro. All were repaired immediately.
Railroads are given up to 30 days to repair noncritical defects. Defects uncovered by inspectors included damaged hazardous material placards, thin brake shoes, inoperative lights, loose bolts on oil tank car heat shields, and missing guard rail bolts.
Oscar Munoz, CSX Corp.s No. 2 executive, is leaving the Jacksonville-based railroad company to become chief executive officer of United Continental Holdings Inc. Gooden has helped lead CSX’s growth and value pricing efforts.
The move is surprising to some analysts, who are asking why would he leave CSX (NYSE: CSX), a railroad giant, when he was likely to be tapped as CEO Michael Ward’s successor.
The company noted that it delivered strong financial, service and efficiency improvements in the first six months of 2015, but expects the second half of the year to be more challenging given intensifying headwinds in its coal markets.
CSX Corporation announced all-time record quarterly financial results for the second quarter of 2015. Operating income for the railroad came in at more than $1 billion for the first time in company history. The railroad also saw an all-time record in operating ratio of 68.8 percent.
Net earnings came in at $553 million or an all-time record of $0.56 per share, an increase from the reported $529 million or $0.53 per share of the second quarter of 2014. CSX expects to deliver mid-to-high single digit earnings per share growth for 2015.
“While we saw challenges in a number of markets, CSX employees delivered an even safer, more reliable and more differentiated service product this quarter,” Chairman and CEO Michael J. Ward said. “We expect the momentum in network performance we saw in the second quarter to accelerate, continuing to create value for our customers and shareholders.”
Revenue declined six percent due to the impact of lower fuel recovery. At the same time, continued low fuel prices and savings from efficiency initiatives reduced expenses for the railroad by nine percent.
Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.
Kansas City Southern reported a decrease in earnings in a press release July 17. The railroad reportedly saw a 10 percent decrease in revenue to $586 million as compared to the second quarter of 2014.
Operating income saw a decrease of 13 percent to $187 million. Operating ratio saw a 1.1-point increase to 68.1 percent compared with last year’s second quarter operating ratio of 68.3 percent. Reported net income totaled $112 million or $1.01 per share, a 15 percent decrease compared to the reported $130 million or $1.18 per diluted share for the second quarter 2014.
Overall, the railroad reported that carload volumes were six percent lower for the quarter. Second quarter revenue declined in all commodity groups except chemicals and petroleum, which grew by one percent. However, operating expenses also saw a decrease of eight percent to $399 million.
“KCS continued to scale its operations in both the U.S. and Mexico and has made strides in improving its network fluidity,” stated CEO David L. Starling. “Our actions contributed to the company attaining a solid second quarter operating ratio despite volume challenges, particularly in its energy commodity group. We expect our system performance and operating metrics to continue to improve throughout the remainder of the year.
“As evidenced in the weekly industry carload data, there are still uncertainties in many of the primary markets served by rail. However, KCS’ average daily volumes increased each month throughout the second quarter and the initial results from the first few weeks of July suggest the positive trend may be continuing.”
Canadian National Railway reported increases in revenue for the second quarter of 2015. Net income saw an increase to C$886 million or C$1.10 per diluted share, over last year’s reported C$847 million or C$1.03 per diluted share for the same quarter. These results included a deferred income tax expense of C$42 million (C$0.05 per diluted share) resulting from the enactment of a higher provincial corporate income tax rate.
Excluding the deferred income tax expense, adjusted diluted earnings per share increased 12 percent to C$1.15 as compared to last year’s second quarter reported diluted earnings per share of C$1.03.
Operating income saw an increase of eight percent to C$1,362 million, while revenues for the quarter were flat at C$3,125 million. Carloadings decreased by three percent and revenue ton-miles declined by seven percent.
Operating ratio for the railway improved by 3.2 points to 56.4 percent over last year’s reported 59.6 percent.
“I’m proud of our very solid second quarter results, driven by the team’s swift action to recalibrate resources and double-down on efficiency, while continuing to improve customer service,” President and CEO Claude Mongeau said. “We’re focused on our long-term agenda and investing C$2.7 billion in CN’s capital program this year to support it, with an emphasis on the integrity and safety of the network.”
In a press release June 21, Canadian Pacific Railway announced the highest-ever net income for the second quarter and the lowest operating ratio for the period in the company’s history.
Net income rose to a record quarterly high of C$390 million or C$2.36 per diluted share, an improvement of 12 percent. Adjusted earnings per share gained 16 percent to C$2.45. Revenues for the railway remained unchanged at C$1.65 billion.
Operating income climbed 10 percent to C$646 million. Operating ratio fell to a second-quarter record of 60.9 percent, a 420-basis-point improvement. Adjusted earnings per share advanced 16 percent to C$2.45.
“CP remains disciplined during this period of economic uncertainty in identifying opportunities to control costs and improve efficiency to offset near-term headwinds,” CEO E. Hunter Harrison said. “Even in the face of this economic slowdown, CP’s commitment to providing the best service at the lowest cost will continue to serve us well moving forward.”
Union Pacific reported a decrease in earnings for the second quarter in a press release June 23. Operating revenue was down 10 percent to $5.4 billion as compared to the second quarter of 2014. Net income for the railroad came in at $1.2 billion or $1.38 per diluted share, a three percent decline as compared to last year’s reported net income of $1.3 billion or $1.43 per diluted share.
Operating income is down 11 percent to $1.9 billion. UP’s operating ratio of 64.1 percent is 0.6 points worse compared to the second quarter of 2014. The company also repurchased 8.0 million shares in the second quarter at an aggregate cost of $834 million.
“Solid core pricing gains were not enough to overcome a significant decrease in demand,” President and CEO Lance Fritz said. “Total volumes in the second quarter were down six percent, led by a sharp decline in coal. Industrial products and agricultural products also posted significant volume decreases. However, we made meaningful progress right sizing our resources to current volumes, and I am encouraged to report that we made these improvements while posting strong safety performance.
“While the volume outlook remains uncertain, we remain laser focused on operating safely and efficiently no matter what the market environment. We will continue to reduce costs and improve productivity as we further align resources with demand. Longer term, we continue to be optimistic about the strengths of our diverse rail franchise.”
Norfolk Southern railroad reported decreased earnings results for the second quarter of 2015.
Net income for the quarter was $433 million, a 23 percent decrease compared to the $562 million record set in the same quarter of 2014. Operating revenues saw a decrease of 11 percent to $2.7 billion, a result of lower fuel surcharges and coal volumes. Gains in intermodal and merchandise traffic were offset by losses in coal volumes.
Income from railway operations declined 20 percent to $814 million. Railway operating expenses also saw a decrease of six percent to $1.9 billion. Diluted earnings per share came in at $1.41. NS’s railway operating ratio was 70.0 percent.
“While we face short-term pressure, particularly as we clear fuel surcharge revenue and coal headwinds, Norfolk Southern is well positioned to continue improving service, which will reduce costs and add value to our customers,” CEO James A. Squires said. “Growth within the intermodal franchise, consumer spending, housing-related momentum and improved manufacturing activity all support an optimistic longer-term outlook. We have a strong legacy of success, and we are taking the right steps to continue value creation for our customers, the communities we serve, our employees and our shareholders.”
Another round of targeted tank car and rail inspections in New York found 62 defects, including one “critical” safety defect that required immediate corrective action, Gov. Andrew Cuomo announced on Wednesday.
The inspections are part of the governor’s efforts to address the safety of crude-by-rail shipments. State and federal teams examined 524 tank cars and about 152 miles of track and 38 switches during the inspections.
Last week, inspection teams from the New York State Department of Transportation (NYSDOT) and Federal Railroad Administration (FRA) inspected tank cars at Canadian Pacific’s Kenwood Yard in Albany, CSX Transportation’s Selkirk Yard in Albany County and Frontier Yard in Buffalo, and the Buffalo & Pittsburgh Railroad’s D&E Yard in Buffalo. They also inspected various CP and CSX mainlines.
MARYVILLE, Tenn. — A fire continued to burn Thursday afternoon at the site where a train car carrying hazardous material derailed and caught fire in eastern Tennessee, and officials said firefighters have been trying to keep neighboring rail cars cool as they make efforts to move them away from the flames.
At a 4:30 p.m. news conference Thursday in Maryville, Tennessee, Craig Camuso, CSX regional vice president for state government affairs, said firefighters are getting as close to the damaged 24,000-gallon tank car as they can, given the heat.
The derailment late Wednesday prompted the evacuation of thousands of people within a mile-and-a-half radius.
The Massachusetts Department of Transportation (MassDOT) has completed the $23 million acquisition of the Framingham Secondary Rail Line from CSX Corporation.
With the acquisition of the 21-mile rail line between Framingham and Mansfield, Mass., MassDOT can now connect the Framingham/Worcester, Needham, Franklin, and the Attleboro/Northeast Corridor commuter rail lines. The line also will provide added rail capacity for passenger trains to switch to alternative routes in cases where capital projects may cause disruptions to normal service.
The Framingham Secondary Line is also a major rail corridor for the shipment of freight between several key points in eastern Massachusetts, including Readville, Milford, Franklin, Fall River, New Bedford, and Worcester.
Motorists’ wait time at U.S. rail crossings may double as CSX Corp. hooks trains together to boost efficiency amid plunging demand for coal shipments.
JACKSONVILLE, Fla. – As CSX works to match its resources to a changing business environment, the company today announced the reduction of train operations at Erwin, Tennessee.
MONTGOMERY, W.Va.— The Federal Railroad Administration (FRA) today announced the cause of the February 16, 2015 CSX/Plains All American derailment in Mount Carbon, W.Va. The accident resulted in 27 derailed cars, a fire that ignited immediately and eventually burned for days and the evacuation of hundreds of local residents.
Safety inspectors from the state Department of Transportation and the Federal Railroad Administration uncovered 95 defects in their most recent examination of rail cars and tracks across upstate New York, Gov. Andrew M. Cuomo announced Monday.
Oscar Munoz, CSX Corp.s No. 2 executive, is leaving the Jacksonville-based railroad company to become chief executive officer of United Continental Holdings Inc. Gooden has helped lead CSX’s growth and value pricing efforts.
CSX Corporation announced all-time record quarterly financial results for the second quarter of 2015. Operating income for the railroad came in at more than $1 billion for the first time in company history. The railroad also saw an all-time record in operating ratio of 68.8 percent.
Kansas City Southern reported a decrease in earnings in a press release July 17. The railroad reportedly saw a 10 percent decrease in revenue to $586 million as compared to the second quarter of 2014.
Canadian National Railway reported increases in revenue for the second quarter of 2015. Net income saw an increase to C$886 million or C$1.10 per diluted share, over last year’s reported C$847 million or C$1.03 per diluted share for the same quarter. These results included a deferred income tax expense of C$42 million (C$0.05 per diluted share) resulting from the enactment of a higher provincial corporate income tax rate.
In a press release June 21, Canadian Pacific Railway announced the highest-ever net income for the second quarter and the lowest operating ratio for the period in the company’s history.
Union Pacific reported a decrease in earnings for the second quarter in a press release June 23. Operating revenue was down 10 percent to $5.4 billion as compared to the second quarter of 2014. Net income for the railroad came in at $1.2 billion or $1.38 per diluted share, a three percent decline as compared to last year’s reported net income of $1.3 billion or $1.43 per diluted share.
Norfolk Southern railroad reported decreased earnings results for the second quarter of 2015.
Another round of targeted tank car and rail inspections in New York found 62 defects, including one “critical” safety defect that required immediate corrective action, 
The Massachusetts Department of Transportation (