Ward Comments on Investment in the Rail Industry Before Congressional SubcommitteeCSX Corporation (NYSE: CSX) announced that CSX Chief Executive Officer, Michael Ward, testified today in a hearing before the United States House of Representatives Committee on Transportation and Infrastructure, Subcommittee on Railroads, Pipelines, and Hazardous Materials regarding “Investment in the Rail Industry.”
Mr. Ward’s testimony highlighted the company’s outstanding track record and plans to meet and exceed the expectations of all CSX stakeholders. The Subcommittee’s stated purpose in holding the hearing was to examine investment in the railroad industry, including concerns raised by the activities of The Children’s Investment Fund (TCI).
In his written remarks to the Subcommittee, Mr. Ward stated:
CSX is an Industry Leader in Safety, Service, Corporate Governance and Shareholder Value Creation
“At CSX, we strive to be the most progressive North American railroad. We are improving faster than the rest of the excellent freight rail industry on nearly every measure, including safety, customer service, and financial performance. We now rank among the industry’s best companies in safety, service and corporate governance. Our 35,000 employees’ efforts have made tremendous strides in meeting customers’ needs and creating significant value for all CSX shareholders . . . The value of CSX’s stock has improved more than 150 percent in the last three years, which has provided shareholders with a return better than the rest of North America’s Class I railroads and 94 percent of all Standard & Poor’s 500 (S&P 500) companies.”
Railroads are Critical National Infrastructure“Railroads serve as the circulatory system of the U.S. economy, and efficient and reliable rail transportation is one of the genuine competitive advantages that U.S. businesses have in the global economy. At CSX, we see robust demand and opportunity for freight rail service in the years ahead . . . freight rail provides a timely, cost-effective, environmentally-friendly and safe mode of transportation. For this reason, more and more customers are turning to railroads - including CSX - to meet their transportation needs.”
Continued Investment in our Nation’s Rail Network is Essential
“To meet the increasing transportation demands of the American economy the rail industry must continue to make significant investments in its infrastructure. . . [CSX has] a balanced and disciplined plan to invest for the future of our rail network - to add additional capacity, newer equipment and technology, and improved transportation infrastructure and security.”
CSX is investing for the future and delivering sustainable value to all of its stakeholders. CSX believes that the suggestions put forward by TCI would limit the Company’s ability to invest in critical rail infrastructure and be harmful to CSX shareholders, customers, and all those who rely on a safe, secure and well maintained CSX rail network.