• CSX buys a Trucking Company (What???)

  • Discussion of the operations of CSX Transportation, from 1980 to the present. Official site can be found here: CSXT.COM.
Discussion of the operations of CSX Transportation, from 1980 to the present. Official site can be found here: CSXT.COM.

Moderator: MBTA F40PH-2C 1050

  by Shortline614
Well this is some interesting news:
JACKSONVILLE, Fla. – May 12, 2021 – JACKSONVILLE, Fla. – May 12, 2021 - CSX Corp. (NASDAQ: CSX) today announced that it has signed a definitive agreement to acquire Quality Carriers, Inc. ("Quality Carriers"), the largest provider of bulk liquid chemicals truck transportation in North America, from Quality Distribution, Inc. Terms of the transaction were not disclosed.
Link to the full press release here: https://www.csx.com/index.cfm/about-us/ ... riers-inc/

I would like to see how this goes. Norfolk Southern bought North American Van Lines in 1984 only for them to sell it 1998. Although NAVL was more of your standard trucking company than Quality Carriers, which specializes in bulk liquid chemicals. More recently CN has bought two trucking companies in Canada.

One question to ask is how many Quality Carriers terminals are also served by CSX. That might give a hint on wheatear or not this transaction will be a hit.
  by Arlington
How? Would more terminal overlap between QC and CSX be a predictor of more “customer synergy” success? Or less successful due to limited territorial expansion?

I’d advance an alternate measure: size of shipments and mix of chemicals. Maybe some CSX customers have shipments that are too small or dangerous (and should go direct by truck), and some QC have big demand and are ready to make multi car shipments by train?

How do you choose between those narratives?
  by Safetee
i'm not sure which narrative fits the bill, but i'll bet the folks at the GnU aren't smiling in anticipation.
  by Shortline614
Both narratives could be correct. Looking at a map QC has most of their terminals on the Gulf and East coast. Most seem to be in close proximity to CSX lines, although I need to sit down and actually look at the individual terminals to see if this is true. I wonder if CSX is interesting in trucking chemicals from QC facilities to CSX TRANSFLO terminals. I'm sure Bill Stephens or another rail journalist will have some sort of article about this out soon. It certainly is unexpected. One thing is for certain. With Pan Am and now this, CSX has a lot of money to throw around.
  by videobruce
Who knows, next it might be an airline and/or an amusement park. :wink:
  by Engineer Spike
This is interesting. My wife's cousins have a trucking company which is a local affiliate of QC. Thanks for posting.
  by QB 52.32
Howdy! Yes, this acquisition should allow CSX market development and penetration for a line of business earning ~20% of their 2022 revenue, proportionately more net contribution, in pursuit of growth. They'll be receiving new proprietary-design tank containers this year, expanding the fleet, as part of their capital plan.

In the context of US Class 1 railroads acquiring (@2) or creating (@1) their own trucking companies since deregulation with varying short- and long-term success, this probably has the greatest chance for contribution over the long run.