CSX Story Archives - Page 4 of 6 - West Virginia Public Broadcasting

Power Plants Running Low On Coal Ahead Of Summer Peak, Industry Tells Regulators

Representatives from the coal industry testified in Washington Wednesday about rail service issues that could put a strain on the nation's power grid.

Representatives from the coal industry testified in Washington Wednesday about rail service issues that could put a strain on the nation’s power grid.

Coal use saw a resurgence last year, as higher natural gas prices and a stronger economy created more demand for electricity generated from coal.

But coal producers and consumers struggled to take advantage of those favorable conditions because of poor rail service, industry leaders told the Surface Transportation Board.

Coal shipments have been delayed because of lack of train crews, lack of locomotives and cars, and because of mechanical problems, they said.

“We would have run out if we had not curtailed generation at our coal-fired facilities,” said Emily Regis, fuel services manager for Arizona Electric Cooperative.

John Ward, executive director of the National Coal Transportation Association, testified that 75 percent of power plants nationwide have less than 40 days of coal stockpiled. He said 20 percent of power plants have less than 10 days of coal on hand.

“Dozens of generating units have been idled or are operating at very low capacity today as utilities attempt to conserve fuel for summer demand that is right around the corner,” he said.

Late last year, coal stockpiles fell to their lowest since 1978, Ward told members of the board.

The summer and winter months are when demand for electricity peaks. The rail service problems have affected other industries as well, including agriculture and manufacturing.

The Surface Transportation Board also heard from railroad labor organizations and executives. It could impose conditions on the railroads to improve service, but it is not yet clear what those might be.

Appalachian Power and Mon Power are among the utilities that have struggled to maintain an adequate supply of coal. CSX and Norfolk Southern are the primary rail companies in Appalachia.

Coal generated 22 percent of the nation’s electricity in 2021, according to the U.S. Energy Information Administration.

Appalachian Power is an underwriter of West Virginia Public Broadcasting.

As Demand For Coal Rises, Not Enough Trains Ready To Move It

Tens of thousands of tons of coal rumble through West Virginia every day on their way to power plants or export terminals. Coal producers say there’s enough demand for coal right now to ship even more.

Most coal is transported by rail across the country, but there aren’t enough trains to move it.

Anthony Hatch, a veteran rail consultant based in New York, says railroads had little reason to invest in tracks, locomotives, railcars and workers in coal-producing regions.

“The railroads were going to invest less in their coal franchises for the same reasons that power plants were switching to gas,” he said. “Because of the long-term story.”

Hatch says no new coal cars have been built since 2015. Railcars can remain in service for 30 to 50 years.

U.S. coal production, and shipments by rail, peaked in 2008 at more than a billion tons. By 2020, coal production had fallen in half.

After hitting bottom in 2020, coal production went up in 2021, according to the U.S. Energy Information Administration.

The challenges posed by COVID on top of years of steady decline may have caught railroads off-guard.

Like other industries during the pandemic, railroads have had trouble hiring. Train crews have to go through six to nine months of training. COVID has also sidelined workers at a time when they’re needed.

Companies that ship by rail have complained about delays – and not just for coal.

Railroads may not have long to take advantage of the renewed demand for coal. Past booms have lasted a few years, maybe a decade. But this one? No one really knows for sure.

“There’s debate even among the railroads that are major coal carriers about how long it lasts,” Hatch said.

The U.S. Energy Information Administration forecasts that coal will have another good year.

But it also predicts that coal will be in decline once more during the next several years. Many coal-burning power plants are scheduled to shut down before 2030. They’re becoming more expensive to operate and can’t compete with natural gas and renewables.

Meanwhile, railroads say they want to move more coal.

A spokeswoman for CSX, which operates 2,000 miles of track in West Virginia, says the company is committing more assets and personnel to address the issue.

DOJ, EPA, West Virginia Settle with CSX for $2.2 Million Over 2015 Derailment

Federal officials have announced a $2.2 million proposed settlement with CSX Transportation to resolve the company’s liability for water pollution violations stemming from a train derailment that caused an oil spill in West Virginia.

The U.S. Environmental Protection Agency, the Justice Department and the state of West Virginia announced the settlement Tuesday. Terms call for CSX to pay $1.2 million to the federal government and $1 million to West Virginia. Federal officials say they hope the fines deter similar incidents.

The CSX train was carrying crude oil when 27 cars derailed Feb. 16, 2015 in Mount Carbon. The resulting explosions and fires destroyed a home and led officials to declare a state of emergency as they evacuated nearby residents and shut down water intakes.

The Federal Railroad Administration said the derailment was caused by a broken rail.

Railroad Company CSX Lays off 70 at West Virginia Facility

Railroad company CSX says it has cut 70 jobs at a locomotive shop in West Virginia, while 270 others continue to work at the facility.

Company spokesman Rob Doolittle says the shop in Huntington will remain open and keep servicing locomotives. Affected employees are eligible to seek positions at other nearby CSX facilities.

CSX and Norfolk Southern, the two major railroads operating in West Virginia, have continued to post profits while shedding personnel, idling equipment and cutting overhead during the downturn in Appalachian coal production the past few years.

Both reported upticks in hauling West Virginia coal in the first quarter of this year.

CSX closed administrative offices in Huntington last year.

According to Jacksonville, Florida-based CSX, the company’s management is reviewing operations aimed at improving efficiency, safety and service.

What's Next for CSX's Huntington Property?

CSX announced in January it was closing administrative offices in downtown Huntington. That means the loss of 121 administrative jobs, but it also leaves the question of what happens to the building when CSX leaves.

The rail company announced that it will consolidate administration divisions from 10 to 9, moving administrative responsibilities from Huntington to five other divisions in Atlanta, Baltimore, Florence, Great Lakes and Louisville. CSX will continue running trains in the area and will keep open its Huntington locomotive shop.

But what happens to the hundred –year-old, 31,000 square-foot building on 7^th Avenue when CSX closes? That could happen as early as this summer. David Lieving, is the President and CEO of the Huntington Area Development Council or HADCO.

“I think it’s important that it not remain vacant for a long period of time,” Lieving said. “I think it’s a testament to the fact that there are a lot of committed people in Huntington that want to see it be repurposed and reused, and frankly it’s an opportunity and I think people recognize the historical significance and many people would probably like to be part of that and play in whatever role they could in seeing that the building is being used again for something productive.”

HADCO has offered its help to the city with efforts to find a tenant or tenants for the facility and to even help in the negotiations, if needed.

Spokesman Bryan Chambers says the city won’t comment on talks between Mayor Steve Williams and CSX on what will happen to the facility. Lieving, though, said it’s important to make sure the facility is used in a productive way.

Lieving said CSX is still evaluating what they have in the building. He said they’ve approached them about the possibility of a donation of the property to the city, but ultimately it’s a wait-and-see game.

Jacqueline Proctor is with the Create Huntington. The group focused on coming up with creative ways to help the city flourish, has been full of ideas for the building that was renovated in 1995.

Some of those ideas focused on the use of the facility as something of a museum to highlight what CSX and trains mean to a city named after a railroad pioneer in Collis P. Huntington.

“I and other people could easily see retail shopping space, a restaurant, someone suggested at our last meeting they would love to see another live musical venue like a jazz club,” Proctor said. “We most certainly could see administrative office space being there on the upper floors and perhaps an educational space not only about the city of Huntington and Cabell County and Wayne and all that, but our train history too.”

Proctor said whether the city can obtain the property or a private owner does, they just hope that it can be used in a productive way.

Messages were left with CSX, but they did not offer comment.

Huntington Not the Only Local Community Dealing With CSX Job Cuts

Officials say 101 positions at a CSX Corp. facility in eastern Kentucky are being eliminated amid a slump in the coal industry.

CSX spokeswoman Melanie Cost told media that the company decided to make the cuts as a last resort. She said the facility in Russell primarily serves trains moving from coal fields in central Appalachia and there is no longer enough activity to support the jobs.

Officials said the cuts affect only the transportation and mechanical departments and leaves more than 300 employees at the location.

CSX also cited a decline in coal when it reduced operations at sites in Corbin, Kentucky, and Erwin, Tennessee, last fall, and when it announced in January that it was closing its administrative offices in Huntington, West Virginia.