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Inside CSX: How Moving One Railcar of Cars Makes Big Money
What Is CSX?
CSX Corporation is a Class I freight railroad operating across the Eastern United States. Its job: move bulk goods and industrial freight more efficiently than trucks. Among its key verticals? Automotive. CSX partners with major manufacturers like Ford, GM, and Toyota to transport finished vehicles from factories to distribution hubs and ports.
Let’s take one realistic example: a single autorack loaded with brand-new SUVs. We’ll follow it from loading to unloading—and break down how CSX earns profit on just that one carload.
Scenario: Shipping Ford Explorers
- Origin: Ford Assembly Plant in Chicago Heights, IL
- Destination: CSX Automotive Distribution Ramp in Tampa, FL
- Railcar: Bi-level enclosed autorack
- Cargo: 11 Ford Explorers (~4,600 lbs each)
- Distance: ~1,100 rail miles
- Customer: Ford Motor Company
- Train Type: Automotive manifest, blocked for Southeast delivery
Step-by-Step: How CSX Moves This Railcar
1. Plant to Rail Yard
The Explorers are driven into the autorack by Ford employees. A switching crew moves the car to a nearby CSX-served classification yard.
2. Yard Blocking & Train Assembly
CSX builds a manifest train that includes other automotive railcars, ensuring minimal reclassification down the line. This car is blocked for Tampa—meaning it’ll stay in its segment throughout the route.
3. Linehaul Movement
The train travels through CSX’s mainline network: Chicago → Nashville → Atlanta → Jacksonville → Tampa. Minimal dwell time and yard stops, unless required for crew changes or congestion.
4. Final Ramp Delivery
Upon arrival in Tampa, the autorack is spotted at CSX’s auto ramp. Vehicles are unloaded and staged for pickup by regional car haulers. CSX’s job ends here.
The Economics: One Autorack, One Shipment
Let’s break down the unit economics for this specific shipment.
▪ Revenue
CSX charges Ford based on a contracted per-carload rate, typically negotiated by route, volume, and equipment type.
For this shipment:
- Rate per autorack: ~$2,200
- Per-vehicle equivalent: ~$200
- Total revenue: $2,200 for 1 railcar
▪ Operating Costs (Estimated Breakdown)
| Cost Component | Estimate |
| Fuel | $150 |
| Crew labor | $75 |
| Track wear & maintenance | $25 |
| Car hire (if leased) | $30 |
| Switching & yard handling | $60 |
| Overhead, insurance, G&A | $40 |
| Total Cost per Carload | ~$380–400 |
▪ Profitability
- Revenue: $2,200
- Cost: ~$400
- Operating Margin: ~$1,800
- Gross Margin: ~82% on that carload
This is a high-margin shipment due to volume density, low handling, and efficient train blocking. CSX maximizes profit per carload by minimizing touches and running long-haul point-to-point corridors.
Why This Works So Well
- Scale: One train can carry 200+ carloads, maximizing crew and fuel efficiency
- Vertical Specialization: Auto ramps are purpose-built for fast unloads and clean handoffs
- Contracted Rates: Stable, multi-year deals with OEMs smooth pricing and volume
- Precision Scheduled Railroading (PSR): Keeps yard dwell and idling low, cutting costs
- Fuel Advantage: Rail moves 1 ton ~470 miles on one gallon of diesel—trucking can’t compete
Fun Fact: Rail vs Truck
That same 11-car shipment would require up to 4 auto-hauler trucks on the highway—at a much higher per-vehicle cost, with more fuel, more labor, and greater emissions. CSX wins on cost per ton-mile, emissions, and scheduling efficiency.
Final Thought
CSX may seem like a steel-and-wheels operation, but the economics are anything but rusty. With ~$1,800 in profit from a single autorack—and thousands of railcars moving daily—the business model is built on high fixed assets, low variable costs, and enormous operating leverage.
This is how railroads quietly mint money—one train car at a time.
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