Amid continuing speculation that Jacksonville-based CSX Corp. might seek a merger with BNSF Railway, the two companies announced an agreement Aug. 22 to provide coast-to-coast intermodal freight services.
CSX is one of two major U.S. eastern railroads, along with Norfolk Southern Corp.
Fort Worth, Texas-based BNSF is one of two major western railroads, along with Union Pacific Corp.
After Union Pacific and Norfolk Southern announced a merger agreement July 29 to create a transcontinental railroad, many rail industry observers speculated CSX and BNSF, owned by Berkshire Hathaway Inc., would seek a merger to compete.
Neither company has commented on the merger speculation, but they jointly announced the intermodal agreement.
“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 for intermodal sales and marketing at CSX, in a news release.
“This collaboration between BNSF and CSX demonstrates the power of partnership, delivering greater flexibility, efficiency and value for our customers,” said BNSF Group Vice President of Consumer Products Jon Gabriel in the release.
The companies said they will offer direct intermodal services between Jacksonville and Charlotte, North Carolina, and Southern California under the agreement.
Other connections include rail services between Phoenix and Atlanta and international intermodal services between the Port of New York and New Jersey and Norfolk, Virginia, and Kansas City.
The intermodal services announcement came three days after activity hedge fund Ancora Holdings Group LLC announced it sent a letter to CSX's board urging it to seek a merger and said CSX Chief Executive Joe Hinrichs should be fired if a deal isn't made.
Ancora has not made any Securities and Exchange Commission filings about its ownership position in CSX stock and CSX has not said if it will meet with Ancora officials to discuss the fund's concerns.