CSX
#Well, clearly, we have the challenges of coal we've discussed pretty extensively here.
I think some of it depends on where the economy heads because, as you know, over the last two to three years, we've been growing those other businesses faster than the rate of the economic growth.
If the economy improves, we think we can do that again next year.
If it stays at a (inaudible) rate, obviously, it is much more challenging.
I think you are going to see us extremely focused on the productivity side.
You saw evidence of that here in the third quarter.
That same intensity we will bring to 2016 and we will take actions to make ourselves more and more productive going forward.
I think what you'll see is we are pretty far along in the adjustments that we are making for longer trains in our merchandise network.
We are also, as an aside, increasing the length of trains in our bulk network too, so we are taking ---+ we are pushing both levers.
What is great about the variable train schedule is, as demand requires, we can flex up and flex down.
So I think it will be a continuing effort on our part to match demand in what has traditionally been a fairly fixed ---+ what we've considered fixed ---+ network on our carload side.
So I don't know that the answer ---+ I think the answer is we are probably not ever done, but a principal and preponderance of the work has been done based on the demand that we are seeing right now.
And I couldn't remember your second question.
Passing sightings.
Passing sightings.
So I think we are evaluating really where we are in the corridors that we need to adjust the length of passing sightings.
We are really in the middle of that now.
So there's some corridors that are more impactful to us than others.
Obviously, the northern tier is mostly double track.
What we are going to be working on is in the southern part of our network that is preponderance of single track.
I think from a train perspective, I think we've taken advantage of our Northwest Ohio expansion and actually have reduced some train ---+ or increased some train length on our intermodal network as a result of that.
But we do have capacity on the trains for the foreseeable volume that we think we will see.
And I will remind you we've done a lot of work on double stack clearances and so forth as well.
So we feel pretty good about where we are there.
I think when we look at the coal network, it's kind of a spaghetti branch line kind of operation with some main lines in between.
As we are seeing some of the loaders ---+ loadouts ---+ either closing and consolidating, it is our ---+ we have an effort afoot here to try to figure out where the best efficiencies are.
Some of it will be main line operations.
Some of it will be facilities.
Clearly, the capital investments have been over time not maybe transparent externally, but have been over time coming down.
That will continue to take place and as we really lose on a particular branch or a particular line volume there, we can also look at repositioning some of the assets into other parts of our network where we are growing and back to the siding capacity question that I got a few minutes ago.
So there's kind of a multifaceted way that we are looking at it, but, as you can imagine, it's a very complex challenge because we want to certainly serve the customers that are loading.
It is very profitable business for us and as you probably would recognize, not everybody on one branch is closing.
We have multiple examples of places where we've got some closing, some not that we have to look at how we are going to serve.
So that project is underway and I probably can't give you more color than that.
I guess I would only add we do expect that Illinois basin coal to continue to grow.
As you know, we made an investment last year in what we call our Caskey yard to allow us to move unit trains from the Illinois basin down into the Southeast in a much more efficient manner.
So it's not just looking at some assets that are less intense, but also making sure we are positioned for the future growth.
I think it's probably a little early to look at that.
Obviously, we are still going to be making investments in the base safety and efficiency of our network, but, in addition, as we see our opportunities in the intermodal market growing, there will probably continue to be strategic investments there.
So I think it's a little early to give you an overall number on that.
So as far as productivity, we, obviously, want to be a reliable network and serve our customers, but we are probably never satisfied on the productivity side.
When you look at velocity and you look at ---+ to your point, take it a step back, we are seeing a concentration of volume on one portion of our network and we are seeing a tremendous reduction in volume on other parts of our network.
So you've got a compression there on top of building longer trains that we talked about, which in a single track railroad can be a little bit challenging, at least at the onset until we make maybe a few investments there.
I wouldn't say we have a target with cars online.
I think, with volume running well, you don't want that number to ever get to zero.
You want to be able to serve your customers and you want to be able to do it efficiently and effectively.
I think our viewpoints on going forward, it's probably on the productivity side, the cycle time of equipment and to a lesser extent maybe the velocity side.
Although that is an important component in terms of turning assets, but the asset component is really where we will be spending the most of our time.
Yes, so we've talked about that on previous calls that we are seeing the span on our arrivals decrease and that has continued into the third quarter.
So while the absolute number is exactly what you see, we are seeing the amount of lateness, if you will, go down.
And this is occurring as we are doing some tremendous ---+ I've talked about tremendous and significant changes to our operating plan.
So we expect that to get to more normalized levels going forward.
Yes, it's on the reported basis, <UNK>.
Well, I think your summation of the fourth quarter is correct.
It's probably too early for us to talk about the specifics on 2016.
We've certainly given you a lot of visibility into domestic and export coal.
And as we always do, we will be focused on the things that are most within our control ---+ rightsizing the resources, driving efficiency, running a better railroad and value pricing and growing what we can grow with the markets.
Well, I think evidenced today by the answers you've been getting from this new team we have in place, we have a super team here to drive us forward.
I think we've got the talent we need.
Our direction as a company is not changing.
It's all about controlling the things we can control, growing where we can and I'm very excited about it.
I will be around.
I've committed to be at least another three years to the Board to make sure that we have a good transition here as we work our way through this transition.
But I feel very good about it and I feel great about the team we have.
I do think we're going to stay away from specific guidance.
We are pretty transparent already in terms of the same-store sales that we provide you in terms of a look back in the previous quarter.
Intermodal is always the most difficult one to get sustained inflation plus pricing, but nevertheless based on the fact that we haven't been able to touch as many contracts as we would like since the beginning of last year, we do feel good about where we are heading on pricing going forward.
We have considered that.
At the same time, we are railroaders, not stock pickers, so we've also done some post-audit work on prior programs and really looked at whether or not a ratable approach or a timing approach was better and we are sticking with a ratable approach.
So you can anticipate a similar run rate to what you saw in the third quarter.
Well, <UNK>, that's interesting you mentioned that.
There may be a better way to look at it just as the absolute dollars.
Obviously, with the fuel surcharge revenues going down and as you know, that's not a profit element for us, but it clearly impacts those top-line revenues and maybe that percentage.
So I think thinking of it in terms of absolute dollars may be the way we evolve over time.
No, I think we continue to be focused on the intermodal side specifically on making sure that we continue to reinvest in the business.
We have a great service product.
We have a strong network.
We have some very innovative things in terms of what we've done with our hub-and-spoke system that gives us a network that I think is unparalleled in the East.
And as we move forward, we always will have a contract that comes up and we will always have some wins and losses over time.
The key thing for us, as I said, we've got to make sure we continue to reinvest in that business and that's how we judge in terms of how we look at and how we approach contracts.
Thank you, everyone, for joining us and we will see you again next quarter.
