Latest Updates: CSX to Invest in Container Yards to Alleviate Tight Supply Chain
Freight rail company CSX will increase investment in container yards in an attempt to address the tight supply chain caused by congestion at ports and warehouses.
The Florida-based company said on Wednesday it would invest in 13 overflow container parks at key terminals to “create additional storage and capacity,” a move it said was in response to the driver shortage truck.
CSX is also partnering with the Georgia Port Authority on its supply chain relief program, which will use indoor rail yards to free up truck capacity and reduce congestion at the port terminal.
James Foote, managing director of CSX, said the company is committed to helping customers overcome current supply chain constraints, take steps “to keep our network fluid” and find new solutions to enable delivering critical goods to millions of Americans.
“We will hire until we have staffed the network to meet demand,” Foote said on Wednesday’s earnings call, promising the company would increase its workforce to deal with supply chain issues. ‘supply.
CSX reported a 24% increase in revenue from a year ago, to $ 3.29 billion in the third quarter, driven by growth across all of its lines of business and boost from the recently completed acquisition of bulk liquids trucking company Quality Carriers. That figure is ahead of analysts’ forecast of $ 3.06 billion, according to a Refinitiv survey.
Earnings of 43 cents per share beat market forecast by 38 cents.
The volume of automotive merchandise declined during the three-month period due to lower vehicle production in North America caused by the continued shortage of semiconductors.
CSX reported a 23% increase in spending, largely due to rising fuel costs for locomotives and trucks.