CSX Railroad Earnings Beat With Record Operating Ratio


CSX Sues Rival Norfolk Southern Over Access To Key Railroad Blocked

CSX Corporation (NYSE: CSX) has sued its rival Norfolk Southern Corporation (NYSE: NSC) claiming that Norfolk Southern’s control of a small railroad within the port of Hampton Roads is blocking CSX from launching any intermodal service from there. The length is the Norfolk & Portsmouth Belt Line Railroad (NPBL) which the railroad operates approximately 26 miles.

The case was filed last week in the U.S. District Court for the Eastern District of Virginia.

The NPBL “terminal switching railroad.” is jointly owned by CSX and Norfolk Southern, CSX owns 43 percent and NSC the other 57 percent.

The Suit alleges there has been a conspiracy “to operate the NPBL in order to benefit NS at the expense of the profitability and viability of the NPBL, and to harm NS’s competitor CSXT.

The suit alleges several violations of the Sherman Anti-Trust Act and violations of the fiduciary duties of Norfolk Southern and the individual directors of NPBL.

The suit seeks damages and asks for an injunction against the defendants that “restores CSXT’s right as a co-equal shareholder and/or establishes an independent board structure as previously proposed by CSXT.”

CSX Corp closed the week at $67.94 ▼ 0.71 (-1.03%)