Can Rail Stay Relevant? A Look at CSX’s Strategy in Intermodal and Long-Haul Freight
“You can’t do today’s job with yesterday’s methods and be in business tomorrow.”
There’s a misconception in freight that rail is outdated—slow, rigid, and disconnected from the pace of modern logistics. But that assumption misses what companies like CSX are actually doing behind the scenes.
CSX isn’t trying to be flashy. It’s not trying to win headlines with moonshot tech. What it is doing is far more important: modernizing an essential piece of U.S. infrastructure to meet the demands of today’s supply chain—and doing so at scale.
Whether you’re shipping food, finished vehicles, chemicals, or containers, CSX is playing a direct role in making sure it gets there. And now, with new leadership, evolving labor dynamics, and a growing intermodal focus, the company is at a critical point in its transformation.
CSX’s Strategic Shift Toward Intermodal
Historically, CSX built its network around moving bulk commodities—coal, aggregates, chemicals. But like the broader industry, they’ve been adapting to structural changes in the economy. Coal volumes are declining. Customer expectations are rising. Sustainability is no longer optional. And so, intermodal freight has become a strategic priority.
Intermodal now accounts for roughly 16–20% of CSX’s revenue, and it’s where they’re betting on long-term growth. By linking rail with trucking and port infrastructure, CSX is trying to position itself as a door-to-door freight partner, not just a rail carrier.
That means:
More inland terminals
Improved first-mile/last-mile partnerships
Technology upgrades for visibility and scheduling
Closer alignment with port logistics
CSX’s customers include some of the biggest names across industries: Amazon Logistics, General Motors, Heidelberg Materials, Nissan North America, Tropicana, and WestRock. That’s a diverse book of business—ranging from auto manufacturers to food and beverage suppliers. What they all have in common is the need for reliable, scalable long-haul service across multiple states.
These shippers aren’t just buying rail space—they’re buying resilience. CSX’s 23-state network and access to major ports (like Savannah and Jacksonville) allow it to move high volumes consistently, with fewer delays, and at a lower cost-per-ton-mile than trucking over long distances.
Rail still moves over 40% of long-distance freight ton-miles in the U.S., and CSX is one of the few carriers that can do it efficiently east of the Mississippi.
Labor Relations: Unionized, and That’s Not a Weakness
A significant portion of CSX’s workforce is unionized—a fact that some see as a burden in an era of lean, flexible logistics. But the data tells a more nuanced story.
As of 2025, CSX had ratified agreements with 11 labor unions, covering 14 different workgroups and 47% of its unionized employees. These agreements include:
Better wages
Improved healthcare benefits
Paid time off
More predictable scheduling
Rather than fighting unionization, CSX has embraced structured negotiations. It’s part of a broader cultural shift under CEO Joe Hinrichs—one focused on rebuilding trust and improving morale after the disruptions of Precision Scheduled Railroading (PSR).
Why this matters:
Union stability gives CSX a more experienced, better-trained workforce in an industry that suffers from chronic labor shortages. It also enhances safety and retention—two metrics that directly affect service reliability.
U.S. Rail vs. European Rail: Two Different Models
I moved to the US in 2020, and noticed that a lot of people living here would complain about how US rail is weaker than European rail; I will always argue that it’s not true. The U.S. and European rail systems operate on fundamentally different models. In the United States, rail is freight-first, with companies like CSX operating on a privately owned network optimized for long, heavy trains—some stretching up to three miles. This setup allows for greater efficiency, measured in higher ton-miles per gallon, and infrastructure designed to move large volumes across vast distances. In contrast, Europe prioritizes passenger service, with most rail networks being state-owned and structured around shorter, faster trains. European rail is built for speed and frequency, but often at the expense of the volume and efficiency that U.S. freight rail provides.
In the U.S., railroads like CSX are built for scale—long, heavy trains covering hundreds of miles with minimal handling. In Europe, rail is designed to work around a dense passenger rail system, which limits how much freight it can handle.
This gives CSX a unique structural advantage. With trucking costs rising and environmental pressure mounting, CSX’s ability to move more freight with fewer emissions positions it as a long-term logistics solution—not just a legacy carrier.
Scenarios for Growth: Where CSX Is Headed
CSX has laid out its near-future roadmap through 2027, targeting:
Low to mid single-digit volume growth
5% compound revenue growth
Mid to high single-digit operating income growth
10% annual EPS (earnings per share) growth
Where will that growth come from?
1. U.S. Manufacturing Comeback
With supply chains regionalizing and manufacturing reshoring gaining steam, more goods will be produced—and moved—domestically. CSX is well-positioned to capture that volume with its intermodal and carload offerings. In other words, I anticipate tariffs will make manufacturing have a strong comeback.
2. Port Expansion
Southeastern ports are growing fast, and CSX has a strong presence in places like Savannah and Charleston. Their inland port strategy is designed to reduce congestion, improve container velocity, and compete with drayage trucking.
3. Long-Haul Truck Conversion
One of the biggest opportunities for CSX lies in long-haul truck conversion. While rail will never fully replace trucking—especially for short-haul and time-sensitive deliveries—it has a real chance to take share from highway freight on lanes over 500 miles. Shippers are increasingly looking for ways to reduce costs, cut emissions, and mitigate driver shortages. That’s where CSX comes in. If the company can offer fast, predictable intermodal service with strong first- and last-mile integration, rail becomes a viable alternative to over-the-road shipping. The key is reliability. Shippers won’t abandon trucks unless they know their freight will arrive on time and in full, with visibility every step of the way. CSX understands this and is making targeted investments in terminal automation, container tracking, and inland port connectivity—all designed to make intermodal feel more like truckload in terms of service, but with the cost and sustainability benefits of rail. This is the battleground where growth will be won or lost, and CSX is actively working to be the carrier that closes that gap.
My Final Thoughts
CSX doesn’t need to become a tech company. It just needs to keep doing what it’s doing: modernizing rail to meet modern freight expectations. That means integrating with the full supply chain, leveraging its cost and sustainability advantages, and delivering on customer needs with more flexibility than ever before.
It’s not about being flashy—it’s about being essential. And if CSX stays the course, that’s exactly what it will remain.
