CSX and BNSF launch new intermodal services across the US

JACKSONVILLE/FORT WORTH - CSX Corporation (NASDAQ:CSX), a $67 billion market cap railroad giant with $14.2 billion in annual revenue, and BNSF announced today several new intermodal service offerings designed to provide coast-to-coast shipping solutions between the western and eastern United States. According to InvestingPro data, CSX maintains its position as a prominent player in the Ground Transportation industry, with a robust EBITDA of $6.6 billion.

The new services include direct domestic intermodal routes connecting Southern California with Charlotte, North Carolina and Jacksonville, Florida. An additional service will link Phoenix, Arizona with Atlanta, Georgia, aimed at converting over-the-road freight to rail transportation.

For international shipping, the railroads will introduce direct intermodal services between the Port of New York and New Jersey, and Norfolk, Virginia, and Kansas City.

Infrastructure improvements are also planned, with two new 10,000-foot sidings to be built between Phoenix and Flagstaff to support more efficient operations on BNSF’s Southern Transcon route. CSX’s stock has shown strong momentum, trading near its 52-week high of $37.25, reflecting investor confidence in the company’s expansion initiatives. InvestingPro subscribers have access to 13 additional key insights about CSX’s financial health and market position.

"Through this new connectivity, CSX and BNSF are connecting Western and Eastern U.S. markets, creating faster, more reliable service," said Drew Johnson, Vice President, Intermodal Sales and Marketing at CSX, according to the press release.

BNSF Group Vice President of Consumer Products Jon Gabriel stated that the collaboration "demonstrates the power of partnership, delivering greater flexibility, efficiency and value for our customers."

The companies indicated that further details about each service will be announced in the near future.

CSX, headquartered in Jacksonville, Florida, operates a rail network connecting major metropolitan areas across the eastern United States. BNSF, based in Fort Worth, Texas, runs approximately 32,500 route miles of track across 28 U.S. states and three Canadian provinces. Investors following CSX should note its next earnings report is scheduled for October 15, 2025. For comprehensive analysis and detailed insights, access the full CSX Research Report available on InvestingPro, part of their coverage of over 1,400 US equities.

The announcement was made in a joint press release issued by both companies.

In other recent news, CSX Corporation is actively exploring potential merger options with the assistance of Goldman Sachs, following the merger announcement of competitors Union Pacific and Norfolk Southern. This development comes as activist investor Ancora Holdings Group has urged CSX to formally announce its exploration of merger possibilities, citing concerns over "sustained operational deterioration." Additionally, Toms Capital Investment Management has taken a stake in CSX, acquiring 5.6 million shares, and is seeking a meeting with the company’s board, possibly to discuss merger strategies.

In light of these developments, BMO Capital has downgraded CSX’s stock rating from Outperform to Market Perform, maintaining a price target of $38.00. The downgrade reflects the uncertainty surrounding potential rail mergers and their impact on the sector’s outlook. Furthermore, CSX announced that Executive Vice President Kevin Boone will speak at the Deutsche Bank Transportation Conference, with his address available via webcast. These recent activities highlight a period of strategic evaluation and stakeholder engagement for CSX.

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