New CSX aggregates business
CSXT’s minerals group recently secured a unit train deal representing 4,000 new aggregates carloads annually. This is not an unusual move for the minerals group in the core CSXT market, but this win is new for CSXT’s northern territory.
“This move wouldn’t have been possible without the Conrail acquisition,” said Dean Piacente, aggregates marketing director. “Before the merger, there were two mouths to feed, Conrail and CSXT,” Piacente said, making the business unprofitable for both railroads. But today, with the business synergies of the acquisition being gradually realized, it is possible to build successful minerals deals in the new regions.
The unit train is destined for Portage Limestone in Kent, Ohio. The Portage plant will be fed by 2,000 cars annually from Wyandot Dolomite in Carey, Ohio, and 2,000 from National Lime & Stone in Spore, Ohio (a former Conrail origin). The product will be used mainly for asphalt production (Thomas Asphalt).
“CSXT picked up the origin in the acquisition,” said Rich Johnson, minerals market manager. “And then we made it work for a receiver. We built track off the CSXT line in Kent to Portage Limestone.”
Copyright Chesapeake and Ohio Historical Society, Inc. Feb 2000
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