CSX chief says company won't slow spending on tracks and terminals
(The following story by David Bauerlein appeared on the Florida Times-Union website on June 6, 2009.)
JACKSONVILLE, Fla. CSX is going full speed ahead on its investment in tracks and terminals this year, despite the recession's drag on freight shipments, CEO and Chairman Michael Ward told local business leaders Friday.
The Jacksonville-based company will spend about $1.6 billion on its shipping facilities, which is close to the $1.7 billion CSX spent during the past year, Ward said.
"We were really doing stimulus before stimulus was cool," Ward said in a speech to the quarterly meeting of Cornerstone, the regional economic development partnership for Northeast Florida.
CSX, a Fortune 500 company, has furloughed employees and sidelined trains to cut costs in line with the drop in freight shipments. But the company isn't changing its long-range strategic plan, Ward said.
He cited a forecast that demand for shipping freight by rail will increase by 90 percent over the next 15 years, in part because highways will become more congested.
"Our investment in new tracks and terminals speaks to our confidence," he said.
CSX employs about 3,400 in the Jacksonville area with a $300 million payroll, he said.
Mayor John Peyton struck a theme similar to Ward's when he spoke to the Cornerstone attendees, who gathered for lunch at the Hyatt Regency Jacksonville Riverfront.
He said the city faces a tight budget but the city shouldn't halt spending on long-range projects.
"It will be a huge mistake to stop investing in this community," Peyton said.
He said the downtown riverfront should be the target for the city's spending, focusing on parks and the Riverwalk.
