Our goal is to attain a 65% operating
ratio by the year 2015. The reason this
is important to short lines is that volume
growth is a key ingredient to making it
happen. And growing volume through
customer or market development is what
you as a short line do the best. For eight
out of the last nine years, the short line
industry has proven it can grow "same-
store" business at multiples of what CSX
can do. Sustaining and improving this
growth performance is where we need your
continued vigilance.
Initiative - Carload
JD Power surveys tell us service to our
customers on the carload business must
improve to win more of their business.
"TSI Carload," as it is known, involves
intense focus on our first-mile and last-
mile performance with all non-unit-train
customers. TSI Carload customers include
our 240 short line partners, where we know
we must be more reliable with our pick-up
and delivery performance at interchange.
will result in higher levels of customer
satisfaction, which should lead to more
business opportunities.
evolve over the next two to three years, and
we will continue to communicate with you
about it. Short lines should expect much
more focus on their interchanges where
service improvements and/or infrastructure
improvements are needed, especially as
we strive to profitably grow volume.
Assessment Project
Over 5,000 CSX-served customers will be
interviewed in person in 2011 to assess
current and future service needs and to
seek opportunities for more business.
Our commitment to improving service
and growing volume is demonstrated
through this effort. While CSX's Short Line
Marketing group performs this function
today with our 240 short line partners, in
2012 more intense focus will be given to
our short line partners through the site
involve other CSX subject-matter experts
from Sales & Marketing, Service Design,
and Field Transportation. Expect to hear
more about this initiative at our 2012
Workshop set for March 4-6, 2012.
continues in 2011. Through July, same-
store volumes grew almost 5%, by more
than 21,000 carloads. Forest Products and
Fertilizer market gains were the strongest,
with Metals being the most challenged.
Volumes with our switch road partners
are 6% higher, a gain of 10,300 carloads.
Industrial development activity remains
robust, and the percentage of new industry
announcements on short lines continues
to exceed 20% of all new announcements
at CSX overall. This trend has continued
unabated since 2004, and it is the life blood
of long-term success.
capturing new business with CSX. I hope
you find our 2011 Interchange newsletter
informative and useful to your business
development efforts. Best wishes for a
successful 2011, and we look forward to
seeing all of you next March at our 23rd
Annual Short Line Workshop.