Prototype News

Now in its 27th year, the Holiday Train raises money and collects food across CPKC‘s network in Canada and the U.S. “supporting community food banks and making a real difference for families in need.” 

“Every year, our railroaders take great pride in bringing the Holiday Train across our network, this year reaching even more communities for the first time,” said CPKC President and CEO Keith Creel. “We are thrilled to send this beautiful train filled with lights and music to spread the joy of the season and proud to support the giving spirit of the holidays assisting people experiencing food insecurity. It’s incredible to see communities come together every year to celebrate the holidays while supporting local food banks.”

Holiday Train Highlights

• 196 live music shows in six provinces and 13 U.S. states. Thirteen communities will be visited by the Holiday Train for the first time, with new stops in Maine (1), Louisiana (6), Oklahoma (1), Texas (4) and Ontario (1).
• Performers include Barenaked Ladies, Smash Mouth, Tyler Shaw, Brittany Kennell, Jade Eagleson, JJ Wilde, American Authors, Pynk Beard, Teigen Gayse, Lanco, Tiera Kennedy, and Dylan Marlowe.
• Since 1999, more than $26 million and over 5.4 million pounds of food for community food banks have been collected in Canada and the U.S.

“At East Side Neighborhood Services, our Food Programs are dedicated to providing consistent and dignified food access, especially for older adults and families in our community,” said Mary Ostapenko Anstett, President, East Side Neighborhood Services in Minneapolis, Minn. “The Holiday Train brings more than donations—it brings hope, awareness and critical support at a time when it’s needed most. With the help of our community partners such as CPKC, we remain committed to ensuring that access to food doesn’t become an added burden for our neighbors.”

“I can’t imagine a better way to visit some of Canada’s beautiful mountain towns than by riding the CPKC Holiday Train. It’s going to be a great time for a great cause,” added Ed Robertson with the Barenaked Ladies, who will be performing on the Holiday Train with stops in Alberta and British Columbia.

The festive atmosphere created by the brightly decorated Holiday Train and engaging musical performances “embody the spirit of the holidays,” CPKC said. Each event is free, with CPKC encouraging attendees to make a monetary or heart-healthy food donation as local food banks will be accepting donations at each stop.

This year’s Holiday Train in the U.S. will feature a new light display honoring the legacy of “Rudy” and the recently retired Kansas City Southern (KCS) Holiday Express train that operated across the U.S. South for nearly a quarter century.

A full schedule and details of this year’s Holiday Train are available here.

The post CPKC’s 2025 Holiday Train Kicks Off Nov. 19 appeared first on Railway Age.

“This quarter’s operational performance reflects the dedication of our workforce and our commitment to running the best railroad in North America,” President and CEO Steve Angel said Oct. 16 during the Class I railroad’s third-quarter 2025 financial report. “We are proud that the network is operating well, and we see clear opportunities to leverage that operational strength moving forward. Looking ahead, CSX is well-positioned to build on this momentum to deliver long-term profitable growth and create value for our shareholders.”

CSX’s third-quarter 2025 operating income was $1.09 billion, compared to $1.35 billion in the prior-year period. Net income was $694 million, or $0.37 per share, compared to $818 million, or $0.46 per share, in the same period last year. “Excluding a non-cash goodwill impairment of $164 million in this year’s third-quarter results,” adjusted operating income was $1.25 billion and adjusted net earnings were $818 million, or $0.44 per share, the Class I reported.

In the third-quarter 2025, CSX reported that adjusted operating income and adjusted earnings per share included $35 million and $0.01, respectively, i”n corporate restructuring, severance, and advisory expenses.”

Volume in third-quarter 2025 totaled 1.61 million units for the quarter, up 1% compared to third-quarter 2024 and up 2% sequentially. Revenue totaled $3.59 billion for the third-quarter 2025, decreasing 1% year-over-year, “as the effects of lower export coal prices and a decline in merchandise volume were partially offset by increases in other revenue, higher pricing in merchandise, and intermodal volume growth.”

By Jason Seidl, Elliot Alper and Uday Khanapurkar

CSX posted a 3Q25 beat as service improvements mitigated cost headwinds. Its network is unshackled with the Howard Street Tunnel and Blue Ridge Subdivision projects complete, and non-recurring costs to lap going forward. Interline partnerships and double-stacking in Northeast provide a long-term intermodal growth runway as CSX positions for industry consolidation under new leadership.

CSX reported 3Q25 adjusted EPS of $0.44, beating our and consensus estimate of $0.42. Top line of $3.6 billion was in line with our estimate, and the beat was driven by OR outperformance of 60 bps vs. our estimate, an encouraging outcome considering well-understood labor and PS&O (Product Strategy and Operations) cost headwinds. Service momentum continues as the resolution of the Howard Street Tunnel and Blue Ridge projects unshackles the network. Velocity and cars on line were significantly improved in 3Q25, and progress should continue in 4Q25. With the critical routes now operational, CSX is poised to materially eliminate ~$25 million in network disruption costs sequentially and thus lap $100 million in non-recurring costs for 2026. We expect fuel efficiency to improve as a result as well and model accordingly. Efficiencies are expected to help CSX hold headcount flat to slightly down sequentially in 4Q25. Sustained service improvement and cost-out is encouraging and essential in a consolidating industry as CSX keeps its options open under new leadership.

Carloads were +1% in a mixed end-market backdrop. Softness in chemicals and forest products continued. Ag was –7% Y/Y but trends are expected to improve sequentially on improvements in both export and domestic markets. Coal remains dichotomous with export markets weak but domestic robust, although the export benchmark headwind is expected to moderate sequentially. 4Q25 also faces easy intermodal comps early in the quarter (indeed, QTD carloads +25% Y/Y). Management reiterated guidance calling for Y/Y carload growth, which is consistent with our modestly raised 4Q carload forecast.

CSX’s intermodal outlook was focused on long-term growth in a consolidated industry as investors likely look beyond near-term peak and size up the truck conversion opportunity for rail. CSX noted that impending consolidation has kickstarted cooperation. Indeed, the intermodal marketing agreement with BNSF should provide both railroads with an opportunity to win some business early on. CSX also remains on track to roll out double-stack intermodal in the Northeast in 2Q26, which should idiosyncratically support 2026 carloads.

Our 2025 EPS estimate moves up to $1.65 from $1.64, while our 2026 EPS estimate remains intact at $1.95. We modestly move our multiple up to 20x to reflect strong operational performance, which pushes our PT up $1 to $39. CSX is a high-quality company with solid fundamentals that appears well positioned to benefit from long-term economic growth. It should win back market share in 2026 following the completion of multiple network projects. CSX is well-positioned to grow with increased domestic infrastructure spending. Reiterate Buy.

Editor’s Comment: All of the above resulted from the leadership of former President and CEO Joe Hinrichs, Railway Age’s 2025 Railroader of the Year, unexpectedly—and to the chagrin and disbelief of many in this industry—ousted by his Board of Directors Sept. 29, just as this excellent quarter concluded. This is not a criticism of new CEO Steve Angel, whose compensation level, though he is untested running a railroad, is understood to be directly tied to pulling off a merger with, presumably, BNSF – William C. Vantuono

The post CSX 3Q25: ‘Well-Positioned to Build on Momentum’ appeared first on Railway Age.

Union Pacific CEO Jim Vena claims to have identified a number of rail industry shortcomings that according to him can only be solved by his proposed transcontinental merger between the Union Pacific and Norfolk Southern railroads. The first of these shortcomings we would like to focus on is the well-known issue of the Chicago interchange.

The second of these shortcomings involves the more nebulous issue of allegedly missed growth opportunities caused by the negative impacts of a geographic phenomenon known as the “watershed.” Conventional wisdom in the railroad business today says railroads are not competitive pricing-wise on short haul moves in the “watershed” market(s). This area involves origins and destinations within a few hundred miles of the Mississippi River, the de facto dividing line between Eastern and Western railroads.

According to the U.S. National Park Service (NPS), the definition of a river’s watershed is the area drained by a river and its tributaries. The actual Mississippi River drains an area of about 3.2 million square kilometers (1.2 million square miles) including all or parts of 31 states and two Canadian provinces, about 40% of the continental United States. 

For the record, we agree with Mr. Vena’s assessment of both problems here but strongly take issue with his recommended solution. We think we have identified some alternative solutions that are more easily achievable without all the drama and disruption of the UP-NS proposal for a transcontinental merger. Mr. Vena claims that his merger will transform Chicago into “just another crew change point.” Well, that is exactly what we are proposing to do here.

First, the issue of the “notorious” Chicago interchange. Mr. Vena appears to completely ignore the significant investments and quantifiable transit time improvements made by the CREATE Program (of which Union Pacific is a part). We think his criticisms here are a bit overblown and find them extremely self-serving to say the least.

My favorite observation on this issue still comes from Chuck Allen, retired general manager of the IHB. In a 2023 article, he said, “I know it’s nuts, but NS runs trains from North Jersey to Chicago on CTC and BNSF does the same from Los Angeles to Chicago, but here in Chicago they were on an unsignaled railroad trying to reach each other.” We are happy to report this problem has been greatly alleviated if not completely solved!

U.S. taxpayers (like you and me) have already made a substantial investment to improve the Chicago Terminal operations by helping fund the CREATE Program.

As a prime example of this investment’s benefits, virtually the entire 54-mile-long Indiana Harbor Belt Railroad main line (54 miles of main line track, 24 miles of which is double track) has been virtually rebuilt. To help alleviate site-specific bottlenecks a third main line has been added in these specific locations. This rebuilding included the installation of a new bi-directional computerized Traffic Control System (TCS), combined with the replacement of numerous manual switches with powered versions. What had once been a decrepit relic has been transformed into a true 21st century main line.

Today the IHB main line runs between Franklin Park, Ill., on the north and Pine Junction (near Gary, Ind.) on the east. Its webpage proudly proclaims, “We are committed to delivering exceptional service to our customers.”

The IHB has always been considered something of a “convenient route through the metropolitan area” a bypass route to avoid the inherent congestion of the Chicago Terminal. By 1985, run-through traffic had come to dominate the IHB main line. Some of its unique legacy features include a main line crossing under the Rock Island main line at Blue Island as well as under the CN-IC main line at Highlawn.

CREATE Component Project P7 calls for the construction of a new flyover at the Chicago Ridge Control Point in Chicago Ridge, IL. When completed, “the flyover will eliminate delays between the CREATE Beltway (IHB) Corridor and the 30 daily trains of Metra’s SouthWest Service” (which operates between CUS and Manhattan, IL in Will County).

The last remaining bottleneck on the IHB is Dolton Crossing, located in the south suburban community of the same name. This is also the site of CREATE Component Project WA11. According to the CREATE Program website, the WA11 project is designed “to improve the speed at which rail freight and intercity trains move through the Chicago region.” The project will upgrade and reconfigure the CSX/IHB/UP connections at Dolton Interlocking, with the following key features:

“Upgrade and reconfigure the CSX/IHB/UP connections at Dolton Interlocking including the replacement of an NS connection between the IHB and CSX. Construct a third main line with direct access from CSX and Barr Yard to the UP main line. Construct crossovers between two main line IHB tracks. Upgrade connection between IHB and UP. Automate Dolton Tower for remote control.”

According to the CREATE website, “the project will increase freight train speeds for multiple routes from 15 mph to 30 mph, including routes accessing CSX Barr Yard, UP Yard Center, UP Dolton Intermodal Yard, a CSX main line route, and all main line connections between IHB, CSX, and UP. The increased speeds will enable this location to handle increased freight train throughput.”

Phase I and Phase II of this project have been completed. As of this date, Project WA11 is awaiting construction funding for completion of Phase III.

There are also five additional completed Beltway Corridor Projects all originally designed to improve the speed at which rail freight and intercity trains move through the Chicago region. These are CREATE Component Projects B4/B5, B6, B8, B9, and B15.

Now let’s find some creative ways to put this investment to work (and as taxpayers get our money’s worth out of the deal).

My perspective here is comparable to that of industry analyst Larry Gross. He was recently quoted in another publication as saying that “better interline service could be just as effective as a merger. As Larry put it, “Intermodal growth potential is hiding in plain sight. This is growth that wouldn’t require a wholesale overhaul of intermodal strategy, operations or technology.” He goes on to observe “it would just require railroads (like BNSF and CSX) to work better together, one way or another.” And that is exactly the better idea we are proposing here.

In the same publication Gross offered his views on the latest BNSF-CSX interline partnership saying, “the BNSF-CSX deal should show that railroads can solve their interchange problems without a merger.” We think this proposal has the potential to do exactly the same thing.

Despite is dubious beginnings CSXT’s North Baltimore intermodal hub (in northwest Ohio) has turned out to be a genius move on the part of CSX senior management. This was a true example of the old adage that when life hands you a lemon, go out and make lemonade. Let’s combine CREATE and North Baltimore into a single integrated system and establish a new paradigm for the traditional Chicago Interchange (at least for intermodal traffic). Let’s make fast change happen now (not 2-3 years down the road).

We believe the opportunity exists to dramatically improve service and squeeze costs out of the system by implementing a new high speed scheduled intermodal shuttle service to replace the traditional Chicago intermodal interchange (both steel wheel and rubber tire). At the end of the day the actual interchange operation would probably take only a few hours especially since main line improvements on the east end of the Chicago Terminal, between the Illinois state line and Chesterton (in Porter County, Indiana), funded largely with the help of a $71 million government funded upgrade called the Indiana Gateway Project (2014), have largely eliminated delays in that area. Moreover, all this was done without a transcon merger. All it takes is some creativity, innovation and leadership.

First on the list of improvements to be utilized here is CREATE Component Project B6. This project constructed a second connecting track between BNSF and Indiana Harbor Belt/CSX at the McCook crossing. The Project also extended the existing connecting track an additional 7,000 feet. More importantly, improving the current connection has also “increased maximum speeds at that location from 10 mph to 25 mph.”

Historically, the main capacity constraint on the IHB main line was the slow entry and exit speeds at junctions. The old connection at McCook that limited movements to 5-10 mph tied up the main line until the last car in the train cleared the junction.

The short version of this idea is to set up a daily scheduled intermodal shuttle service between Galesburg, IL (on the BNSF) and North Baltimore, OH to move intermodal interchange traffic straight through the terminal on the rail. Ironically, North Baltimore is already listed as a BNSF Intermodal Hub on the BNSF website. This interesting development appears to be the direct result of one of a voluntary interline agreement between BNSF and CSX, the same kind of agreement Mr. Vena claims to have such little faith in.

The city of Galesburg is a small town located along the western edge of Knox County, a predominantly rural area located in the western part of the state of Illinois. It is located about 180 miles southwest of Chicago on the rail and home to one of the oldest classification yards on the BNSF system. Originally constructed in 1906 (by the CB&Q) this original yard was completely rebuilt and expanded during a multiyear project starting in 1930 with final completion in 1942. It has since been expanded and upgraded a number of times. It appears to be equipped with a well-furnished locomotive serving facility capable of maintaining and servicing any and all road power assigned to the new run-through operation.

With the merger of BN and Santa Fe Galesburg assumed increased importance as the key yard at the eastern end of the new network. Today the yard occupies nearly 1,000 acres and is reportedly one of the top three BNSF hump yards by capacity.

Galesburg was the birthplace of the American poet Carl Sandburg, one of Illinois’ most famous native sons. It is also the home of the National Railroad Hall of Fame, originally established in 2003. Recent inductees include former KCS and ATSF President Mike Haverty, former BN CEO Lous Menk and former Union Pacific CEO John Kenefick.

Galesburg falls under the jurisdiction of Foreign Trade Zone 114, Economic Development Council for Central Illinois, Grantee (and is already the site of at least one FTZ subzone).

Interchange traffic would be preblocked in each direction. The eastbound blocks (probably from yards in Barstow, CA and Kansas City, KS on BNSF) could be set out at Galesburg and assembled into a dedicated train. The BNSF Barstow (IL) subdivision connects the Aurora subdivision at Plum River, IL (near Savanna) with Galesburg, which would allow the addition to the mix of CSX traffic out of the Pacific Northwest. After picking up any local business (for CSX destinations) run the entire train over the new and improved IHB main line between the new higher speed BNSF junction at McCook and the IHB east end at Pine Junction straight onto a connection with CSX.

Here’s an interesting thought. Does the Galesburg connection open a new service lane between the Twin Cities and southern California, or between Minneapolis and North Texas?

This new operation would also help relieve pressure on both the CSX Bedford Park (Chicago) intermodal terminal as well as BNSF’s Corwith (Chicago) intermodal terminal. Both facilities are legacy land-locked facilities, and both are operating at or near capacity. Given their legacy locations, both facilities are also increasingly difficult to access on the rail as well as the highway.

According to Mr. Vena, the proposed UP-NS merger would open service in the nation’s midsection that is currently not well-served by rail due to the short hauls for the eastern or western carrier, or both. We agree with his assessment that there really are areas within the watershed with significant untapped concentrations of potential rail traffic. Where we strongly disagree is with his suggested approach/solution.

The I-380 Corridor (primarily in eastern Iowa) represents a veritable gold mine of potential intermodal business right in the middle of the so-called “watershed” area. Think of a funnel and Galesburg is located at the bottom of the funnel’s narrow tube opening. This funnel is spread out north and west of Galesburg into the state of Iowa. It includes the Iowa cities of Waterloo, Cedar Rapids and Davenport, as well as the Illinois city of Moline, which are all located northwest of Galesburg (along Interstates 80 and 380). It turns out there is an enormous amount of agriculture related industry located within the area of this funnel.

Waterloo Tractor Operations in Waterloo, Iowa, is John Deere’s largest manufacturing complex globally (reported 5,000 total employees). Moving south from Waterloo about 50 miles down I-380 is Cedar Rapids home to the world’s largest cereal factory owned and operated by Quaker Oats. It currently employs around 740 people and processes over 2 million pounds of oats daily sourced primarily from western Canada. Quaker is actually one of three major cereal manufacturers in Cedar Rapids along with General Mills and ConAgra.

Continuing east and south about 85 miles, via Interstates 80 and 74, is the Quad Cities, home of four more Deere manufacturing plants (in Davenport and Moline). Galesburg is about 45 miles south of the Quad Cities via Interstate 74.

Finally, a number of Caterpillar manufacturing plants are located about 25 miles south of Galesburg in Central Illinois scattered around the Greater Peoria area.

The advent of intermodal deregulation in 1981 radically changed the nature of the business. In May 1986, Railway Age reported that nationwide railroads had pared the number of intermodal terminals (frequently called “circus” ramps back then) from an estimated 1,175 in 1979 to just 360 hubs. In 1981 Eastern Iowa was home to plethora of piggyback ramps. After the advent of deregulation, the reorganization of The Milwaukee Road and liquidation of the Rock Island Railroad helped to quickly eliminate most of these legacy circus ramps. Today the one remaining intermodal terminal in Iowa is the IAIS facility at Council Bluffs.

At one time both BN and Santa Fe had piggyback ramps located in Galesburg. Santa Fe closed its original Galesburg ramp in 1989 (and BN reportedly soon after). Ironically, 1989 was also the same year that the founder and CEO of the trucking company that still bears his name, Johnnie Bryan Hunt, Sr., and Santa Fe President Mike Haverty made their now famous handshake deal while riding in a Santa Fe business car coupled on the rear of Santa Fe’s QNYLA intermodal train. Legend has it the train was moving westbound (at a high rate of speed) through Galesburg on the rail when the famous handshake occurred.

According to their 1987 Intermodal Service Guide, the BN Galesburg Hub Center included a “Satellite” facility located in Cedar Rapids, Iowa. The “Market Area” for the Galesburg Hub included all points within the area defined by Dubuque, Iowa to the north; Bloomington, Illinois to the east; Hannibal, Missouri to the south and Ottumwa, Iowa to the west. (Sounds like a pretty good definition for the new Galesburg Gateway.)

Like the North Baltimore site, the Galesburg yard is surrounded by acres of cornfields so there is plenty of room for BNSF to construct whatever new infrastructure is needed. In October 2022 BNSF announced development of a 4,500-acre, $1.5 billion facility known as the Barstow International Gateway. This new integrated rail facility will be located on the west side of Barstow, California, home to another BNSF hump yard. It will consist of a railyard, intermodal facility and warehouses for transloading freight from smaller international containers to larger domestic containers. Rail is not the only piece of the narrative here. Both Barstow and Galesburg are well connected to the National Highway System (NHS). We think the ultimate opportunity here for BNSF is to create a new Multimodal Inland Gateway at Galesburg, catering to Midwest agribusiness (in the watershed), and generally based on the Barstow International Gateway model.

As a practical matter, Galesburg is much closer to the historical point of interchange versus Kansas City (and the new Kansas City Logistics Park).

According to the 2022 Iowa DOT Rail Plan:

“Iowa’s central location in the Midwest could potentially make it a hub for the development of an additional facility on various domestic intermodal rail corridor services extending to the southern, eastern, and western U.S. and various international ports, thus enhancing access to the rail network in Iowa and the reach of Iowa’s shippers and receivers in the national and global marketplace.”

Based on public statements such as this one, we believe that the Iowa Department of Transportation could be a willing and valuable partner for any Iowa-related intermodal projects like the Galesburg Gateway.

This new BNSF intermodal terminal (in cooperation with their trucking partner JB Hunt) as part of the Galesburg Gateway could capture a large portion of this Eastern Iowa/North Central Illinois regional manufacturing and food producing business. The potential for new business appears to be significant. Keep the west coast business on BNSF and ship the east coast business on the new shuttle trains via CSXT direct to North Baltimore.

The new STB merger rules specifically require the proponents to provide opportunities for increased competition. I can think of no other more valid example than busting up the intermodal monopoly currently enjoyed by Norfolk Southern at Harrisburg, PA. In recent years, the Harrisburg area has evolved into one of the most important intermodal hubs in the Northeast.

A 2011 Trains article showed an average of 24 intermodal trains per day operating over the NS main line between Cleveland and Harrisburg. At the same time Chambersburg, Pa., was the closest CSX intermodal to terminal to Harrisburg, located about 60 miles to the southwest. Data published in the same article showed an average of only two intermodal trains per day operating along the CSX Chambersburg branch.

There are currently two intermodal terminals located in the greater Harrisburg area identified as NS-Harrisburg and NS-Rutherford, both owned and operated by NS. If that is not a monopoly, I do not know what is. This monopoly is clearly inconsistent with both the spirit as well as the letter of the new regulations. The STB should require NS to divest one of the two terminals (and related access trackage) and turn it over to CSXT.

Another anti-competitive issue is right here in the Chicago area where Union Pacific controls the dispatching on the joint line Villa Grove Subdivision. This 128-mile stretch of track was once the north end of the former Chicago & Eastern Illinois Railroad. It is located at the north end of UP’s route south to the Mississippi River crossing at Thebes, IL. It also represents the north end of CSX’s Southeastern Corridor, which crosses the Ohio River at Evansville, IN. Technically ownership of this line is 50-50, with dispatching handled by Union Pacific at Proviso yard in Chicago, and maintenance costs prorated on tonnage. The railroads’ agreement supposedly provides that Union Pacific treat CSX trains like their own.

A polite person would say that agreement has been followed more in spirit than substance, but everyone who knows me knows that subtlety is not one of my flaws. In my professional opinion, Union Pacific has had CSX in an operational chokehold for a very long time. It is time for a new paradigm here as well by turning over the dispatching of the Joint Line to CSX.

One final thing. Be careful what you ask for. The proposed UP-NS merger deal is about so more than just connecting dots on a map. For instance, as a former Santa Fe employee, I wonder if anyone at Union Pacific has calculated how much actual time and money it will take for them to upgrade the NS ex-Wabash Decatur to Kansas City line to actually be able to compete with BNSF’s Chillicothe and Marceline subdivisions. These two BNSF subdivisions anchor the eastern end of what is the finest high-speed freight route in North America (if not the world).

James A. Giblin has more than 40 years’ experience in rail, truck and intermodal freight transportation, warehousing and logistics, much of it in the greater Chicago area. He has lived in the Chicago area most of his adult life and is intimately familiar with the region’s freight and passenger rail infrastructure. For six years he is proud to say, “He made his run and made his pay on the Atchison, Topeka & Santa Fe.” In recent years, his professional experience has expanded and diversified to include numerous public sector clients and projects in communities and municipalities across Chicago’s south suburbs. He submitted written testimony as regional rail industry expert in favor of CN/EJ&E merger to the Surface Transportation Board and testified at the STB’s September 2008 Chicago hearing in favor of transaction. Jim is a former multi-year Chair of the Education Committee of the Traffic Club of Chicago.

The post A Few Better Ideas: A Contrarian View appeared first on Railway Age.