(CSX issued the following news release on September 1.)
JACKSONVILLE, Fla. — CSX Corporation said that it is continuing freight transportation service to customers outside of the immediate Gulf Coast storm area by rerouting rail traffic through its well-established western gateways, including East St. Louis, Ill., Memphis, Tenn., and Montgomery, Ala., as well as through its various TRANSFLO and Intermodal facilities.
The most severe storm impact is concentrated on the 100-mile CSX route between Pascagoula, Miss., and New Orleans, including several bridges. Repair work has already begun and will take some time to complete.
“Like all companies with operations in the storm area, our primary concern is locating and assisting our approximately 300 employees and beginning the recovery process,” said Michael Ward, chairman, president and chief executive officer.
“The physical impact to our rail infrastructure, while significant, is confined to a relatively small segment of our 22,000-mile network. The flexibility of our system allows us to continue service beyond the heavily impacted areas, and the strong fundamentals and outlook for CSX remain intact,” said Ward.
In the third quarter, CSX expects some business interruptions and additional costs due to rerouting and rebuilding efforts. At this time, the company expects that insurance over its self-insured retention of $25 million will be adequate to cover expenses and capital costs of rebuilding.
“CSX has been a citizen of the Gulf Coast region for many decades and extends its deepest sympathies to the people affected,” said Ward. “As we have done many times before in other areas, we will work closely with our customers, employees and communities to help restore economic vitality to the region.”
CSX Corporation, based in Jacksonville, Fla., owns companies providing rail, intermodal and rail-to-truck transload services that are among the nation’s leading transportation companies, connecting more than 70 river, ocean and lake ports, as well as more than 230 short line railroads. Its principal operating company, CSX Transportation Inc., operates the largest railroad in the eastern United States with a 22,000-mile rail network linking commercial markets in 23 states, the District of Columbia, and two Canadian provinces. CSX Intermodal is a stand-alone integrated intermodal company, serving customers with its own truck and terminal operations plus a dedicated domestic container fleet. More information about CSX Corporation and its subsidiaries is available at the company’s website, http://www.csx.com .