By Asit Sharma, The Motley Fool; June 13, 2018
Last week, CSX Corporation (NASDAQ:CSX) announced that it’s soliciting bids for six non-contiguous rail segments located in North Carolina, West Virginia, Kentucky, and New York. Selling the non-core assets, which comprise approximately 650 miles of track, is part of a “broader initiative to drive asset utilization, enhance network efficiency and create long-term value for the company,” according to CSX’s June 6 press release.
That broader initiative is, of course, the transformation of CSX into a scheduled railroad, i.e., one that optimizes assets while implementing a strict service plan and precision train scheduling. This project was set into motion by railroad legend and former CSX CEO Hunter Harrison, who passed away last year. It’s now being carried forward aggressively by CEO Jim Foote and the company’s management team.