Current news

Chesapeake and Ohio Historical Magazine, Apr 2003 by Huddleston, Gene, Seay, Tom, Young, Everett N

(Proquest Information and Learning: ... denotes non-USASCII text omitted.)

Franklyn Carr Dies

A key figure in the creation of the 1972 Chessie System image, Franklyn Carr died in March 2003 at the age of 62.

As Chessie's Manager of Creative Services, Mr. Carr devised the "Ches-C" logo (...)) that became the cornerstone of the affiliated C&O/B&O/WM image, and he played a central role in the development of Chessie Systems corporate identification and equipment paint schemes. He retired from the railroad in the early 1980s.

Growing the Business

From CSX Today, August 2002

There are four groups that make up CSX's surface transportation business-Merchandise, Coal, Automotive, and Intermodal.

These four groups last year contributed $7.2 billion in revenue to CSX. Merchandise was the largest contributor to revenue at $3.5 billion or 49 percent. Coal was second at $1.7 billion or 24 percent. Intermodal ranked third with $1.1 billion or 16 percent of revenue. Automotive provided revenue of $850 million or 11 percent.

Of these four business groups, the tracks of the former C&O are impacted far more by coal than by any of the others. Let's take a look at the coal group, led by Chris Jenkins, senior vice president-coal, andsee what they are up to.

Coal is king on CSXT. We had a great year last year [2001] moving coal, taking in about $1.7 billion in revenue. This year [2002] has been slower because the winter was mild, while summer has been warmer than usual.

There are four main parts of our coal business. The largest is called utility-coal that is moving to power plants to generate electricity. This is by far the largest part of the business, accounting for $1.3 billion last year. A distant second is the business piece called metallurgical coal, coke and iron ore, which accounts for $200 million. This is coal and ore that is going to steel mills. AK Steel in Middletown, Ohio, is our largest combined Merchandise and Coal customer. Last year we did more than $100 million in business with AK Steel.

The third biggest piece of the coal business is called industrial, which is coal going to industrial plants like Kodak to power their electrical generators or to be converted into steam for heating or running their equipment. Last year, the industrial piece of business totaled $100 million.

Finally, we export about $ 100 million worth of coal to foreign markets each year, an important piece of business, but one that has declined since 1995. Many foreign plants have closed, and other countries can produce and export coal cheaper than the United States.

In 2002, the people in the coal group expect to convert $60 million of business that today is running by truck or barge from 30 utility plants. "We're going after that business every way which we can," said Chris Jenkins, senior vice president-coal service group.

CSX Lines Sold

From the Richmond Times-Dispatch,

December 19, 2002

submitted by Ray Saunders

CSX Corporation said it will sell its domestic container shipping unit to The Carlyle Group for $300 million in cash and securities.

CSX Lines, based in Charlotte, N.C., will retain its management team but be renamed Horizon Lines. CSX Lines has 17 U.S.-flag vessels and 22,000 containers. The nations largest ocean-transport company provides shipping and logistics services to and from the United States, Guam, and Puerto Rico.

The Carlyle Group is a global private-equity firm with more than $13.9 billion under management. The deal is expected to close in the first quarter of 2003, the companies said.

CSX Corp. President Michael J. Ward called the development "a terrific transaction for all parties. Completion of this transaction is consistent with our oft- and long-stated strategy of becoming more rail-based."

Three years ago, CSX sold its Sea-Land global shipping business for $800 million to A. P. Miller-Maersk.

Kentucky Electrric Steel Shuts Down

From the Louisville Courier-Journal

submitted by Charles Bogart

Kentucky Electric Steel, a producer of specialty steel near Ashland, said yesterday that it expects to file for bankruptcy by the end of the month. It said most salaried employees are being terminated as it winds down operations.

Kentucky Electric Steel of Coalton announced two days after Christmas that its directors had voted to shut its production facilities. The company said that after it files for Chapter 11 bankruptcy it expects to "focus on a strategic exit from its business."

The company has suffered from a downturn in the domestic steel industry, as well as a weakened national economy. Last year, the company reported a loss of $15.3 million, or $3.74 a share.

Most of the plant's hourly workers were laid off last month. The company's mini-mill has manufactured steel used to make leaf springs atici truck trailer beam supports. The company's lenders twice have rejected company proposals for restructuring its debt.

Editor's Note: Charles Bogart points out that this is one of the last industries on the former C&O Lexington Subdivision. The line ends just west of this plant. A tour of this plant was part of the 2001 C&OHS convention in Ashland.