CSX annual report yields new details on capital spending

Written by Staff and newswire report
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CSX

CSX has filed its annual report with securities regulators, and the document contains some items of interest to railroad contractors and vendors.

According to the document, known as a 10-K, the Class 1 railroad’s spent some $771 million on track last year, well above the $733 million in 2017. By contrast, spending in the “Bridges, Signals and Others” category plummeted to $491 million from 2017’s $570 million.

Total capital spending last year by CSX reached $1.75 billion, in keeping with the numbers released when the railroad reported earning last month. More than half of the capex spend will be used “to sustain the core infrastructure,” according to the 10-K.

Roughly $100 million of the total capex in 2019 will go toward implementing positive train control. CSX estimates it has already spent $2.2 billion on PTC. CSX currently estimates that the total multi-year cost of PTC implementation will be approximately $2.4 billion for the company, according to the 10-K, which can be downloaded here

Another interesting item from the 10-K offers details on how CSX accounts for both removing and installing track material.  “Through analysis of CSXT’s track replacement process, CSX determined that approximately 20% of labor costs associated with track material installation is related to the deconstruction of old track, which is expensed, and 80% is associated with the installation of new track, which is capitalized.”

The document also provides an update on the size and scope of the railroad. At December 2018 , CSX had a total of 36,557 track miles in its system, consisting of:

  • Mainline track: 26,286 trackmiles (TM)
  • Terminals and switching yards: 9,350 TM
  • Passing sidings and turnouts: 921 TM

 

Categories: Ballast, Ties, Rail, Bridge/Retaining Walls/Tunnels, C&S, Class 1, Freight, OFF Track Maintenance, ON Track Maintenance, Track Maintenance, Track Structure
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