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Wednesday, October 15, 2014

CSX CEO: Further US rail consolidation could disrupt service, (NYSE: CSX)

Further consolidation of major U.S. railroads could lead to service disruptions rather than improvements in U.S. rail freight congestion, the chief executive of CSX Corp said in a conference call with analysts on Wednesday. "We might actually see a step back in service," Michael Ward said when asked whether consolidation would improve rail capacity.The Wall Street Journal reported on Sunday that Canadian Pacific Railway, the No. 2 Canadian carrier, had made a bid for CSX, the No. 3 U.S. railroad, but had been rebuffed. Both companies failed to comment on the report.Ward referred to the last major round of U.S. rail mergers in the 1990s, which were accompanied by system-wide service collapses."We saw service disruptions after those transactions," Ward said.

CSX Corporation (CSX), together with its subsidiaries, is a transportation supplier. Shares of CSX fell by 0.77% or $-0.25/share to $32.36. In the past year, the shares have traded as low as $25.28 and as high as $34.09. On average, 6530400 shares of CSX exchange hands on a given day and today's volume is recorded at 2127582.