CSX Corp. (CSX) is the third largest publicly traded railroad company in North America. The company commands an impressive 21,000 miles of rail network. The following system map image demonstrates the scale and reach of CSX Corp. CSX Corp operates and services the east coast of the US and directly competes with Norfolk Southern (NSC). CSX Corp., however, has an advantage where it provides service to Florida, which NSC doesn’t.
The Railroad Industry
Railroads are considered a wide moat industry, as it entails immense capital requirements and new entrants in the industry are almost unheard of. Railroads are the pulse of the economy. Whether transporting crude, lumber, merchandise, agricultural or industrial products, railroads are what keeps the economy moving. Railroads are often closely observed by economists and analysts to get a sense of how the overall economy is doing. It is also considered a leading indicator for any recessions or slowdowns.