JACKSONVILLE-Fla. ---CSX Corporate remained steady today around 53 dollars a share. The company’s stock fell nearly ten percent following the news CEO Hunter Harrison was on medical leave last week. Harrison past away Saturday, leaving some to question what the future will look like at CSX.
Even before CSX announced CEO Hunter Harrison was on medical leave for health reasons, the board questioned the company's progress.
Thursday, the Surface Transportation Board sent this letter to CSX asking for a progress report on the new operating system following continued complaints of service challenges, inadequate service and lack of communication with changes to service to rail shippers.
CSX says they’re aware of the letter from the Surface Transportation Board and are working on a response.
CSX say they remain committed to the reducing transit times and say they’ve already seen success from implementing Mr. Harrison’s vision and are remained focused on executing his plans.
“I work with a lot of clients in the shore line industry, shore-line railroads that connect to CSX, several of them were having significant challenges, a few months ago," said managing partner BlueJays Advisors Josh Putterman.
Josh Putterman keeps track of how much companies ship and where they ship, he says, yes, a few months back some deliveries were several days behind, especially in the southeast, but things are improving.
“Is it perfect and is on a day to day basis fine, not yet, but most definitely improved.”
Putterman is also a former 16 year CSX employee and says he remains confident in the direction CSX is headed.
“I think the fact that they’ve been able to overcome the dramatic drop in coal and continue to be as profitable as they are just shows you what kind of earning power the company has. It’s certainly turned the corner and now it’s a matter of implementation and consistent execution,” Putterman said.
CSX has yet to decide if the current interim CEO Jim Foote will remain CEO, but say the company will continue to implement the vision put forth by Hunter Harrison.