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Chesapeake-Seaboard-X Merger

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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 …show more content…

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

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