The moves are designed to eliminate “bureaucracy and long-standing silos.”
CSX Corp. on Tuesday announced a new operating management structure that decentralizes operational and support functions.
The changes are a continuation of the Class I railway’s precision scheduled railroading transformation, an operating model that aims to move the same amount of cargo with fewer trains, equipment and personnel.
“This is a proven model that pushes decision-making closer to the day-to-day field operations and eliminates bureaucracy and long-standing silos within our business,” CSX President and CEO James Foote said.
The new operating management structure has resulted in the appointments of:
• Bob Frulla as senior vice president, operations East;
• Jermaine Swafford as senior vice president, operations West;
• Jamie Boychuk as senior vice president, network operations;
• And Amy Rice as vice president, intermodal operations.
They will report to Ed Harris, executive vice president of operations. Harris joined CSX in January, bringing more than 40 years of railroad experience. His experience includes nearly a decade of working alongside Foote and the late E. Hunter Harrison during the implantation of the precision scheduled railroading model at Canadian National.
Precision scheduled railroading was the brainchild of Harrison, who implemented the operating model at CSX when he was named president and chief executive officer of the Class I railway in March 2017. He also was a former president and CEO of Canadian National and Canadian Pacific and was credited with remarkable turnarounds in operating and financial performance at both.
After Harrison died in December, Foote immediately was selected to fill the role of CSX’s president and CEO. Foote is an avid supporter of precision scheduled railroading.
Frulla, who has been with CSX for 28 years, most recently served as senior vice president of network operations.
Swafford, who joined CSX 20 years ago, most recently served as senior vice president and chief transportation officer.
Boychuk most recently served as vice president of precision scheduled railroading implementation and intermodal operations at CSX. Prior to joining CSX last year, he spent 20 years at Canadian National.
Rice, who joined CSX in 2011, most recently served as vice president of strategic planning.
“This new structure highlights the strength of CSX’s extremely talented operating leadership team and will enable the company to continue driving performance improvements in a more effective and efficient way,” Foote said.
CSX thrived in the second quarter of 2018, posting a net income of $877 million on revenues of $3.1 billion, up 72 percent and 6 percent year-over-year, respectively. The railway’s board of directors last week approved a $0.22 per share quarterly dividend on the company’s common stock payable Sept. 14 to shareholders of record at the close of business on Aug. 31.