CSX: Rail rates to be up 5-6% in 2008
Logistics firm says coal exports, ethanol shipments will keep demand strong
By Dave Hannon -- Purchasing, 4/17/2008 2:22:00 PM
Rail and intermodal provider CSX Corp. said in a recent earnings call that it expects rail rates to be up 5-6% in 2008, as high gas prices and roadway congestion drive shippers to the rails.
CSX reported a better-than-expected 46% increase in earnings for its first quarter, driven by better rates and demand for shipping ethanol and coal. Michael Ward, CEO of CSX, feels the massive amount of investment needed to fund an improved highway infrastructure in the U.S. “can be a positive for our industry."
Ward also told Reuters that continued export of coal from the U.S. will remain strong through 2009, driving demand for rail services. As Purchasing.com reported recently, China’s demand for coal is so high that U.S. miners including Peobody are exporting coal to the Asian region.
See also: Railroads come under more price-fixing fire
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