CSX's Margins Showing Progress, Though Intermodal Likely to Slow in Second Half

Railroad turnaround legend Hunter Harrison led Eastern Class I railroad CSX from early 2017 until his death in December that same year. Successor James Foote continued to implement Harrison's precision scheduled railroading model until his retirement in late 2022. At its core, PSR focuses on rightsizing assets, including sorting yards, motive power, and rolling stock. Fewer assets and longer trains boost network fluidity, resulting in labor productivity gains, better service levels, and higher potential incremental operating margins. Better service also creates greater opportunities for intermodal, which is highly truck-competitive.