CSX to Reduce Operations in Corbin, Kentucky
October 20 2015 - 10:41AM
Dow Jones News
By Tess Stynes
CSX Corp. is closing mechanical shops in Corbin, Ky., as the
railroad operator continues to respond to lower coal traffic
volume.
The Jacksonville, Fla.-based company said roughly 180 employees
will be affected at the Corbin operation--which serves trains
moving coal from central Appalachia--although some of the workers
will be offered relocations.
Roughly 100 engineering and transportation workers will remain
at the Corbin operations to support and manage traffic at the rail
yard, which will remain open. CSX said a small number of mechanics
also will remain to support train operations.
The move comes less than a week after CSX said it would reduce
train operations in Erwin, Tenn., a move that will affect roughly
300 employees.
As lower natural-gas prices prompt power plants to switch fuels,
coal volumes transported by rail have fallen about 9% year-to-date,
according to the Association of American Railroads. It is the
largest traditional commodity group for U.S. railroads, comprising
nearly a fifth of total rail traffic at more than 4 million
carloads of coal so far this year.
To control costs, CSX recently said it is running longer
trains--lengths were up 10% in the third quarter compared with the
same quarter a year ago--and reducing its workforce. In the fourth
quarter, its average head count will be down 6%. The company
employed an annual average of 32,000 employees in 2014, according
to its annual filing with the Securities and Exchange
Commission.
Laura Stevens contributed to this article.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 20, 2015 11:26 ET (15:26 GMT)
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