CSX has begun whittling away operations in coal country by planning to reduce its use of the former Clinchfield Railroad route between Elkhorn City, Kentucky, and Spartanburg, South Carolina.
Affected will be the Kingsport Subdivision between Shelby Yard in Pikeville, Kentucky, and Erwin, Tennessee; the Blue Ridge Subdivision between Erwin and Spartanburg; and the Big Sandy Subdivision between Russell, Kentucky, and Pikeville.
Particularly hard hit will be Erwin, where CSX plans to abolish local management jobs, cut the number of regularly assigned train jobs and reduce the number of train service positions. CSX has 300 employees at the Erwin terminal.
CSX said in a news release that employees based in Erwin will receive 60 days of pay and benefits with many of them retaining eligibility to bid on jobs elsewhere in the CSX system.
The former Clinchfield is a 275-mile route through some of Appalachia’s most remote and scenic territory.
Trains magazine reported that most rail traffic using the affected routes will be re-routed onto other lines.
Coal loads and empties are expected to move over the route via Corbin, Kentucky, and Etowah, Tennessee, on the former Louisville & Nashville mainline.
Some trains are expected to use the former Chesapeake & Ohio mainline in West Virginia. Service to customers in Kingsport, Tennessee, will be served by a shortened Q696/Q697 manifest freight.
At present, these trains operate between Russell and and Hamlet, North Carolina, but are expected to begin running between Kingsport and Hamlet.
The cutbacks in operation of the former Clinchfield was expected given that CSX recently said that a soft market for coal decreased the company’s earnings in the third quarter.
During a conference call earlier this week, CSX officials told investment analysts that the railroad expects to trim its workforce by 2 percent by the end of 2015 due to the decline of coal traffic.
CSX said coal traffic in the third quarter of 2015 was 20 percent lower than it was in the same period of 2014.
When one analyst asked about what restructuring that CSX plans to do to address the coal decline, Cindy Sanborn, the railroad’s chief operating officer, replied that everything is on the table.
“And as far as whether it would be facilities or lines, I think you will understand and appreciate that we want to be able to talk about those things internally before we do externally,” Sanborn said. “But there’s really not anything that’s not on the table.”
Aside from scenery, the Clinchfield is also known for hosting an annual Santa Claus train.