I just received and read this notice from the Federal Government issued to CSX, things are really getting bad, reality is catching up with Hunter’s wacked out management of CSX.
https://www.stb.gov/__85256593004F576F.nsf/0/69B0E40C8E0156FD8525816A006977D6?OpenDocument
This is a copy of the letter sent to Mr. Hunter. Time to reopen some foolishly closed Hump Yards!
Does anybody know what the next step is? Can the STB step in and force reversal of some of the changes?
There is a huge difference between the STB and what he had to deal with in Canada. Here in the states they will if needed start fining his butt millions of dollars and if needed order him to stop implementing his plans to improve customer service. Why can they do that simple they are empowered to do so by act of Congress. EHH is going to find out that the government here still has teeth and will bite hard or at least the BOD of CSX is going to in one hell of a hurry.
Sounds like railroad custumer serivice has gone from bad to worse
I am of the opinion Harrison has finally met his match and he will be CEO for a very short time. In addition to his health being of concern, the STB stepping in this early in his tenure speaks volumes. I believe he made changes too quickly without giving each change time for lower level management to accomodate those changes. He used an axe when a scalpel would have been more in order. Surgically removing unnecessary operations one at a time would have been more in order but he chose to do all at once and left CSX in total chaos.
I doubt his actions have truly benefitted CSX stockholders, but given the board’s decision, with stockholder approval, to approve his demand for $84,000,000 I’m sure he will be paid that. Look at the ridiculous salaries the CEO’s of corporations like Sears got paid only to shepherd the company into bankruptcy.
The STB needs to come down very hard on Harrison. He is not making CSX better. He is raping the company for the benefit of a hedge fund and his own greed.
Directed Service Order - rarely carried out in this type of scenario and the cure may be worse than the ailment.(especially with a downsized STB and very few practical railroaders and attorneys in the mix.) …these things usually only appear after a bankruptcy and at a much smaller scale…
STB’s purpose is to preserve and protect interstate commerce/service, not to be a management guru or price fixer. Ombudsman’s dilema in the offing? (and hopefully some of the Wall Street Trash bullies get a bloody nose, egoes deflated and an overdue wake-up call)
CSX is a private business… if you’re not happy with the service then go elsewhere… that’s how competition works.
I fully agree, if you have not read it yet, check out Railway Age’s editorial, “What is going on at CSX?” It list many of the crazy moves Hunter is making, I agree with what you said a scapel was needed not an axe. CSX was still very profitable before Harrison’s arrival, it main weaknesses were customer service, directionless management and slow transit times.
Trust me the customers are leaving in droves when they can!
I wonder if Mr. Buffett is looking to expand his 1:1 layout?
Directed service order probably wild but to NS, UP, or BNSF still bad. Moorman ? But what if SEC suspends trading in CSX stock ? Now that could be a big put down ? Don’t own CSX stock but 2 who did have bailed in the last week.
EDIT: One item missed in the debate is that the power companies need to use their Coal fired plants until the investment in them has been fully depreciated. As understood some plants cannot be converted to natural gas economically ? Best case is those generating plants that can use either coal or gas at flick of switches.
EHH has ramped up the weakness in Customer Service, has reinforced the directionlessness of management and slowed transit times to the point of gridlock, increasing total cars on line and their resultant increase in per diem payments to the car’s owners.
CSX will have a large hill to climb after Mantle Ridge and EHH’s oxygen tank runs out.
Very true!
Take this for what you will my boss has heard thru several of the other carriers in the area that UPS is offering massive rates starting Monday for loads going to the NE. The requirements are Double Endorsement Haz-mat and UPS is paying all tolls for the carriers. We are guessing that UPS is tired of CSX and their BS and is going to pull their loads going to Upstate NY Boston and the Northeast from CSX entirely. A tidal wave of customers leaving is about to hammer CSX and it is not going to be pretty.
If Harrison is the one man wrecking ball that everyone says, why doesn’t anybody stop him?
Investors know nothing about operating a railroad. They believe the BS that Mantle Ridge fed them to give EHH the $84M ‘signing bonus’ and Lord only knows what BS Mantle Ridge is snowing them with at present to keep them from coming in contact with reality and rioting.
Money talks. All he needs to do is cost the investors money and he will be gone in no time. The market already didn’t react well to the conference call. I’m sure the STB sticking their nose in the business is another cause for concern.
So is this just a big conspiracy to have EHH kill off the company for the immediate, one-time gain of the investors? Or are you saying that it is the investors who are the ones that will stop EHH if he keeps on harming performance?
It is the institutional investors believing the smoke that the hedge fund Mantle Ridge blew up their posteriors and installing Mantle Ridge’s ‘anoited one’ EHH to be CEO. 2nd Quarter financials cooked the books (within generally accepted accounting principles [which have a lot of wiggle room]) to show financial benefits without reference to the reality of what was taking place on the railroad itself.
Reality is starting to bite - in a big way.