Author Topic: CSX Sues Norfolk Southern  (Read 495 times)

I-10east

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CSX Sues Norfolk Southern
« on: October 12, 2018, 11:08:35 PM »
CSX sues it's rival Norfolk Southern over "conspiracy to monopolize".

Quote
CSX Corp. (Nasdaq: CSX) filed suit against rival railroad Norfolk Southern Railway (NYSE: NSC), which operates over much of the same territory, claiming that NS conspired with Norfolk & Portsmouth Belt Line Railroad to block CSX from Norfolk International Terminals.

The suit, filed Oct. 4 in the Norfolk division of U.S. District Court, also names three NS vice presidents and president of NBPL. CSX accuses the railroads of using acquisitions to get a majority share of NPBL — CSX owns 43 percent while NS owns 57 percent — then hiring former NS employees as NPBL managers and installing current or former NS employees as voting board members at NBPL.

"NS and these directors and the NPBL management they put in place have conspired 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 [CSX's subsidiary, CSX Transportation]," CSX claims in its suit.

This "conspiracy... to pursue illegitimate ends  is nowhere more vividly demonstrated" than the Norfolk International Terminals, CSX claims. NIT constitutes the largest international shipping terminal in Virginia, and only NS and NBPL can access it.

"NS and the NPBL have used the NPBL as a chess piece to establish and maintain NS’s monopolistic control over intermodal transportation in and out of NIT by making it practically impossible for any other rail carriers to provide intermodal rail service to NIT," the suit reads.

CSX further claims that NPBL has agreed to terms that hurt its own business interests in order to benefit NS and that the Virginia Port Authority has called for more rail competition at the terminal.

"... competitors such as CSXT are practically precluded from using the NPBL to connect to NIT because the rate set by NPBL’s board, in concert with NS, is prohibitively expensive and because NS refuses to allow NPBL to handle intermodal trains over its tracks on a regular basis," CSX claims.

The last time CSX had access to NIT was in 2015 when several other ports were closed, which sent huge volumes of containers to NIT, and "because of demands from its customers, CSXT was forced to pay the high rate charged by the NBPL." CSX called this brief access "the briefest of windows in which CSXT could feasibly pay these rates."

CSX told the Business Journal it brought "this lawsuit because it is seeking the ability to compete fairly at Norfolk International Terminals, a growing and thriving port that would benefit from being served by multiple rail carriers.”

NS declined to comment.

https://www.bizjournals.com/jacksonville/news/2018/10/09/csx-sues-rival-railroad-over-conspiracy-to.html

Ocklawaha

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Re: CSX Sues Norfolk Southern
« Reply #1 on: October 31, 2018, 03:41:02 PM »
So um? What's stopping NS from suing CSX over JAXPORT?

thelakelander

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Re: CSX Sues Norfolk Southern
« Reply #2 on: October 31, 2018, 04:53:08 PM »
Probably that JAXPORT is insignificant in comparison to Norfolk.
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Ocklawaha

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Re: CSX Sues Norfolk Southern
« Reply #3 on: November 01, 2018, 11:12:47 AM »
We might not be the biggest dog on the block but 1Mil TEU’s is nothing to sneeze at! Even at just 40% capture (roughly national average for rail volume) That’s still a potential 410 carloads daily or about 6-7 60 car trains... That such rail volume IS NOT MOVING FROM JAXPORT is a direct result of planning/building a captive-single carrier port. My contention (and I believe you agree) is that ALL TRACKAGE east of Grand Crossing into the Talleyrand-Blount Island terminals should be municipal/state owned, with open access with a simple wheelage charge.

With BRIGHTLINE planning on a JAX move in what is almost certainly a ATLANTA projection. And OCT 3rds news that NS is picking up their HQ and heading to ATLANTA the stars might be lining up for us. At least NS will be much closer to home. I have to wonder if our political and port management are up to the task of maximizing such an opportunity.

bl8jaxnative

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Re: CSX Sues Norfolk Southern
« Reply #4 on: November 04, 2018, 02:12:24 PM »
It's not about volume, it's about the little railroad that NS and CSX co-own.  That RR exclusively serves all the major ports in Tidewater. 

Jaxport is served differently with no single RR have exclusive access over all port operations.

thelakelander

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Re: CSX Sues Norfolk Southern
« Reply #5 on: November 04, 2018, 02:54:00 PM »
CSX is the only railroad with access to Dames Point and Blount Island. The much smaller and older Talleyrand is the terminal with access to NS and CSX. FEC does not have direct access to any port facility. They generate a ton of truck traffic between the port terminals and their railyard off Philips and JTB.
« Last Edit: November 04, 2018, 02:55:39 PM by thelakelander »
"A man who views the world the same at 50 as he did at 20 has wasted 30 years of his life.” - Muhammad Ali