LOOKING FOR A SILVER BULLET : THE EAST AFTER CONRAIL, PART 1

This article is the first of two that describes the 1997 split of Conrail between CSX and NS railways. In particular, this article describes the difficulties CSX has experienced in the time since the split, namely in the form of mismanagement through rapid turnover of executives and managers along with inadequate preparation for the additional operational concerns that naturally follow from such an acquisition. The article contends that many of the managerial problems that occurred after the acquisition are a result of downsizing, the conflicting visions of the company’s future following the integration of Conrail managers into CSX, and the loss of the company’s president and CEO, John Snow, to President Bush’s cabinet in 2002. The operational difficulties that CSX experienced are attributed to poor planning for the shifts in traffic patterns, intermodal volume, demand, and a criticism of CSX’s track maintenance standards in an audit by the Federal Railroad Administration. The article relates that a new corporate management is promoting a return to fundamental practices, with a new vision manifest in the new ONE plan. Finally, the article describes some improvements in CSX that can be attributed to the stabilizing operational and managerial structure of the company.