In an email last week, CSX CEO Hunter Harrison apologized for the delays plaguing customer freight, citing employee resistance to planned transitions.
CSX Corp. Chief Executive Hunter Harrison apologized to customers for service disruptions, citing some railroad employees resisting changes at the company, according to an email sent to CSX customers early last week.
Harrison is facing some heat from the U.S. Surface Transportation Board over aggressive cost-cutting measures currently being implemented.
“Over the past four months, CSX has been undergoing a tremendous amount of change, including an operational transformation that will ultimately result in better service to our customers. We’re not at the finish line yet, but I’m personally writing you today to reaffirm our commitment to working with you individually to ensure you receive the support you require to meet your business needs,” Harrison said in the email.
“I think we can agree that more-reliable service and improved asset utilization is a win-win for your business and ours. It is with these intentions that we have focused our efforts — moving our customers’ freight consistently, reliably and cost efficiently.
“The pace of change at CSX has been extremely rapid, and while most people at the company have embraced the new plan, unfortunately, a few have pushed back and continue to do so. This resistance to change has resulted in some service disruptions,” continued Harrison. “To those customers that have experienced such issues, we sincerely apologize. As we move forward, we will continue to address these internal personnel matters and our teams have recommitted themselves to reaching out to those affected to work through any service issues and resolve them as quickly as possible.”
According to a report from Reuters, analysts at Cowen & Co said more than 80 percent of shippers they surveyed have experienced problems with CSX and nearly 40 percent have switched some freight to rival Norfolk Southern. Another 67 percent have transferred freight to a trucker, according to the survey.
“Car velocity has drastically declined, putting our ability to serve our customers and maintain empty supply to our plants in serious jeopardy,” said one shipper to Cowen.
John Risch, a spokesman for the transportation division of the SMART Union, which represents CSX operations employees, said “significant delays” had been caused by Harrison’s changes, such as doubling the size of trains and shutting down hump yards where a freight train’s cars are separated onto different tracks, according to Reuters.
“No one is more to blame for CSX’s service disruptions than the man who ordered the dramatic changes to operations and that’s Hunter Harrison,” Risch said by email to Reuters.
However, Harrison promised to address the “internal personnel matters” and said the company was recommitted to finding affected customers and fixing service issues.
Harrison addresses CSX service disruption issues
