Amid persevering with hypothesis that Jacksonville-based CSX Corp. would possibly search a merger with BNSF Railway, the 2 firms introduced an settlement Aug. 22 to offer coast-to-coast intermodal freight companies.
CSX is one in all two main U.S. jap railroads, together with Norfolk Southern Corp.
Fort Price, Texas-based BNSF is one in all two main western railroads, together with Union Pacific Corp.
After Union Pacific and Norfolk Southern introduced a merger settlement July 29 to create a transcontinental railroad, many rail business observers speculated CSX and BNSF, owned by Berkshire Hathaway Inc., would search a merger to compete.
Neither firm has commented on the merger hypothesis, however they collectively introduced the intermodal settlement.
“Via this new connectivity, CSX and BNSF are connecting Western and Japanese U.S. markets, creating quicker, extra dependable service,” mentioned Drew Johnson, vp for intermodal gross sales and advertising and marketing at CSX, in a information launch.
“This collaboration between BNSF and CSX demonstrates the facility of partnership, delivering higher flexibility, effectivity and worth for our prospects,” mentioned BNSF Group Vice President of Client Merchandise Jon Gabriel within the launch.
The businesses mentioned they may provide direct intermodal companies between Jacksonville and Charlotte, North Carolina, and Southern California beneath the settlement.
Different connections embrace rail companies between Phoenix and Atlanta and worldwide intermodal companies between the Port of New York and New Jersey and Norfolk, Virginia, and Kansas Metropolis.
The intermodal companies announcement got here three days after exercise hedge fund Ancora Holdings Group LLC introduced it despatched a letter to CSX’s board urging it to hunt a merger and mentioned CSX Chief Govt Joe Hinrichs needs to be fired if a deal is not made.
Ancora has not made any Securities and Trade Fee filings about its possession place in CSX inventory and CSX has not mentioned if it’s going to meet with Ancora officers to debate the fund’s issues.