(The following story by Matt Glynn appeared on the Buffalo News website on April 16, 2009.)
BUFFALO, N.Y. — CSX Transportation’s Frontier Yard in Buffalo is under review by the railroad for possible cutbacks or, in a worst-case scenario, closing, a union official said Wednesday.
A company official, John Gaylord, briefed employees during a visit this week but did not provide firm details of CSX’s intentions, said Dave Kellner, president of Transport Workers Union Local 2020, which represents a portion of CSX’s area work force.
“It’s just a waiting game right now,” he said.
Robert Sullivan, a spokesman for Florida-based CSX, read a statement saying that CSX is weighing tough decisions amid the poor economy.
“No decision has been made regarding the Frontier Yard operation,” he said. “However, CSX, like any company, cannot rule out any potential option or action as we fight our way through these difficult economic times.”
Kellner noted that the Frontier Yard, located off Broadway, has experienced a dropoff in activity due to a slowdown in industries it supports, such as the automotive sector. General Motors Corp. requires fewer rail cars to serve its Town of Tonawanda engine plant than it used to, and American Axle & Manufacturing has closed much of its local manufacturing.
The business slowdown already has led to about 125 workers being put on furlough at the Frontier Yard, Kellner said.
Sullivan said that CSX’s volumes “are down by double digits in nearly every part of the economy we serve.”
“We have no choice but to act swiftly to adapt our resources in response to the significant decline in volume,” he said.
Gaylord told area employees that CSX is reviewing a few other yards in its network, in addition to Buffalo’s, to determine their future, Kellner said. No timetable for a decision was announced, and Sullivan would not comment on when a decision might be made.
While the Buffalo operation has to cope with negatives such as New York state’s higher-than-average fuel prices, one factor in its favor is its proximity to the Canadian border, to serve cross-border rail traffic, Kellner said. Without the Buffalo yard, he said, those trains would have to travel about 300 miles to a CSX yard in either the Albany area or Willard, Ohio.
Kellner said local CSX workers are feeling anxious. “A lot of younger guys figured this would be their future. They finally got a job on the railroad.”
A CSX worker, who asked not to be identified, reflected that mood of uncertainty. “Everyone’s walking around on pins and needles,” he said.