Economic recovery, the new energy sector, and highway-to-rail traffic conversion combined to drive unprecedented growth in many rail markets in 2014. In the year ahead, our focus as an industry must be to capitalize on our momentum through capacity expansion and service enhancements that reward customers’ confidence in our ability to meet their needs.
Railroads are well positioned to address a range of national priorities, including environmental sustainability, public safety, relieving the stress of truck traffic on an aging highway infrastructure, and providing efficient, cost-effective transportation services that enhance our customers’ global competitiveness. The opportunity for our industry to capitalize on all of these rail strengths has never been greater.
Work to convert shipments from highway to rail will continue and intensify in 2015, supported by ongoing railroad investments in intermodal networks. At the same time, partnerships are flourishing with the trucking industry to provide customers with the most-efficient combination of long-haul rail and the flexibility of truck deliveries and pickups.
We also look forward to the continued business growth driven by the evolution of the energy markets. The emergence of the United States as a leading producer of crude oil and natural gas is not only generating new railroad business in itself, it is also contributing to lower energy costs and creating a favorable economic climate for a resurgence in U.S. manufacturing.
These positive trends, and others, are offsetting to some degree the erosion of coal revenue in recent years. Now, as the downward trend in coal is stabilizing, the industry is positioned to accelerate its top-line growth — provided, of course, that we continue to deliver the service levels, safety performance and profitability that our stakeholders demand.
Michael Ward, Chairman, President and CEO, CSX