CSX(Chesapeake-Seaboard-X merger) provides rail, intermodal and rail-to-truck transload services in many markets. CSX serves the energy industry including coal and liquefied petroleum and gas products. They transport industrial and construction materials along as well as agricultural products. CSX has a wide foot print stretching into consumer goods and some say that many of the consumer goods we each enjoy have, at some point been on a CSX train(CSX employee interview Georgia Public Broadcasting). Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation's population resides. It also links more than 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and small farming towns alike.
With such a wealth of experience the management at CSX allows the company to operate efficiently and form strategic alliances with industry stakeholders. Through leveraging its over $35 billion in assets CSX is projecting growth for transporting products of all kinds. Unfavorable challenges facing CSX include US political and environmental aversion to coal and carbon
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Favorable opportunities for CSX are present in its strategic positioning to capture much of the liquified natural gas, and other petroleum products coming out of the shale boom in North Dakota, as well as Liquid Petroleum Gas from Ohio, Pennsylvania, and West Virginia. This technological development has created sources for energy in need of transport that CSX is taking advantage of.
Threats include competition from Union Pacific, which is less levered to coal and boasts a market capitalization of over $67 billion. CSX is also carrying a high debt of $20 billion.
The Opportunities discussed below will utilize these strengths while keeping in mind the company’s weaknesses and
A two tiered deal was made by CSX because of the heavy regulation Pennsylvania has for mergers and to provide financial considerations for Conrail’s shareholders.
CSX Corporation “engages in the provision of rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers.” (The Wall Street Journal, 2016). The company began in 1827 and started with horse-drawn rail cars covering only 13 miles in one state. Present day, the corporation command electric locomotives is capable of moving tons of cargo on a daily basis. The main headquarters is in Jacksonville, Florida. CSX Corporation, together with all its subsidiaries, is one of the nation's leading transportation suppliers.
It is critical for any firm to identify its core strength and weak spot in it. Furthermore, company should be able to identify opportunities in market not seen by other competitors and must act upon it. Additionally, market poses threat to company also. This should be tackled by the company before it is too late to act upon. Ad-Lider should be
The success of a company ultimately depends on how well they manage their opportunities
Another key strength would be its staff. The company was able to draw from a talented and experienced pool of workers within the automotive industry. This was made possible due to the concentration of automotive suppliers located within the Rio Grande Valley both within the United States and Mexico. The company is able to draw from the employee’s vast experience allowing the company
- Explain the structures of the road and rail cargo industries and the current issues facing the industries.
Founded in 1898, GATX's primary activities consist of railcar operating leasing in North America and Europe. GATX Corporation is divided into four business segments: Rail North America, Rail International, American Steamship Company (ASC), and Portfolio Management. Portfolio Management consists largely of the corporation's non-rail and non-Great Lakes assets. GATX is one of several major North American rail operating lessors, and measured by fleet size, ranks as number two in this market behind GE Rail Services. Other major North American rail operating lessors include CIT, First Union, Union Tank Car Company, Trinity Industries Leasing, ARL, and Helm
The lack of growth observed in the state of California with the Hydrail project sparks question as to where the interest in rail rests. Improving rail transportation for logistics purpose also includes the movement of people. In an article by NPR, The author interviews American’s benefiting directly from the freight industry of rail transportation. The focus with the article addresses popularity among high-speed bullet train growth for passenger rail, in addition to how that impacts the infrastructure for freight rail in a negative manner. The article offers nothing short of rewarding insight into the discussion of expanding freight technology, with regards to the popular focus on high-speed commuter rail.
Age.It has been pointed out by Shumway (2001), that organization age could actually help firms to be more efficient,and age can be measured by the number of years since listing. As the organization aged, it helps them to build a name over the years. Moreover, the old age of the organization is a sign of knowing the appraisal value of the particular business due to obsolete and induces organizational decay (Agarwal, Rajshree&Gort, 2002). On the other hand, the success or downfall of a company depends solely on the management of the organization or entity’s.
CSX maintain great freight transportation service, even with their loss in the coal market that help their shareholders receive value from CSX financial success. CSX has help provide job growth with creating about 62,000 jobs. Including with their job growth, CSX has also helped their employees maintain benefits and fair wages. CSX has made sure to keep up with the economy with making sure their taxes are being paid making sure to stay connected with business around them. CSX also believes that with working with suppliers it is important to maintain diversity that matches the customers they serve
There are many different opportunities for these three firms to increase their growth in this very competitive marketplace.
CONSOL Energy, Inc. is also a leader of natural gas exploration, development, and production in the eastern US. The company possesses extensive gas reserves throughout the Appalachian region and mid-western US. The company also produces coal-bed methane as a by-product of their extensive coal mining operations. CONSOL’s presence in the natural gas industry gives the company a competitive advantage over rivals with a singular dependence, especially in the energy industry, where certain products are increasingly preferred over others due to
JB Hunt considers that majority of these customers would not ship the current volume of loads intermodally (is that a word?) without this program. JB Hunt advertises the bottom well service to customers as a deter to theft, damage, and high level of monitoring with a 99% compliance rate. The NS and BNSF offers the HV/bottom well service to Hunt and they gain/win business as a result. Without allocation of factual information they exclaimed a hefty percentage of these customers do not ship CSX since they do not offer the service.
This growth is facilitated by Vellexs’ established competitive fleet of 80 trucks and 100 trailers, supported by a wide network of committed subcontractors carefully selected at the inception of Vellex. The Vellex success, is contributed to the partnerships formed between customers, suppliers
In an industry beset by limited options to consolidate domestic rail traffic, CSX looked at Conrail as an avenue to increase market share and gain access to the North East rail network. With air travel, road travel and trucking taking an increasing share, significant revenue growth became difficult. As Conrail became profitable, Congress explored ways of privatizing it, giving CSX an opportunity to acquire Conrail. Though Conrail suffered from performance inefficiencies it had certain strengths relative to CSX and Norfolk with respect to highest revenue per mile of track operated, per carload originated etc. Conrail with operating revenue of $3,686