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On Jan. 1, CSX Transportation launched an incentive program for regionals and short lines that's designed to help the Class I prompt more business from its small-road partners.
CSXT plans to give cash awards to as many as four regionals and short lines based on carload growth in 2003 and the railroad's size.
The Class I will award $10,000 to a large railroad that increases its carloads with CSXT this year by the highest percentage compared with 2002 and a large road that boosts CSXT carloads by the greatest number of carloads compared with last year.
CSXT also plans to award $2,500 to one or two small roads that move 700 carloads or less with the Class I annually but increase carloads more than 30 percent in 2003 compared with 2002.
In addition to expanding small-road-generated business, the program aims to "enhance [short-line] collaborative efforts that have been under way at CSX for many years," says Len Kellerman, CSXT managing director of rail network marketing.
To determine Short Line and Regional Railroad Incentive Award winners, CSXT plans to compare carload figures for 10 2002 and 2003 accounting periods.
The Class I expects to present awards in late November or early December at its annual short-line and regional workshop in Jacksonville, Fla.
— Jeff Stagl