Jacksonville, FL-based railroad CSX Corp. is rerouting freight transportation service around lines in the Gulf Coast region severely damaged by Hurricane Katrina. However, the road does not expect to be bogged down by long-term repair work.
“The most severe storm impact is concentrated on the 100-mile CSX route between Pascagoula, MS, and New Orleans, including several bridges,” said Michael Ward, CSX chairman, president & CEO. “Repair work has already begun and will take some time to complete. But while the physical impact to our rail infrastructure is significant, it’s confined to a relatively small segment of our 22,000-mile network.”
Ward noted that the “flexibility” of CSX’s rail network should allow it to continue service without too much impact on revenue and profit projections.
“In the third quarter, CSX expects some business interruptions and additional costs due to rerouting and rebuilding efforts, but at this time, the company expects that insurance over its self-insured retention of $25 million will be adequate to cover expenses and capital costs of rebuilding,” he said.