Nov 16, 2007
Tampa Truibune Editorial
This was taken from the Tribune editorials. It's a good read!
Relegating Public To Caboose Derails Confidence In CSX
Published: Nov 4, 2007
The best thing about our recent visit with CSX railroad executives is that they finally answered questions about some troubling business practices revealed by The Tampa Tribune over the course of this year.
That wasn't why they came, of course. The five senior executives for public relations and governmental affairs hoped to build support for a mega-deal the railroad struck with former Gov. Jeb Bush before he left office.
The deal calls for the Jacksonville-based carrier to surrender a 61-mile rail line through Orlando, where it owns a second parallel freight track, so that Central Florida can begin building a commuter rail system.
In return, the railroad would be allowed to build a new hub in Winter Haven for long-haul freight trains.
Oh, and taxpayers would pay the railroad $491 million.
Like the image ads running on television, CSX officials said the hub would help take big-truck traffic off the roads. Interstates 75 and 95 in north Florida would see the most relief.
But given the railroad's lack of interest in tapping the growing container business at the Port of Tampa, no drop in big-truck traffic would be seen around here. In fact, Bartow, Lake Wales and Mulberry would see a significant uptick in big wheelers needed to distribute goods from the hub.
The company's overemphasis on reducing truck traffic is just one of the flaws in its public pitch.
The Deal's Ups And Downs
If you've stayed abreast of the CSX deal - not an easy feat, given the secrecy demanded during negotiations - you know the proposal's glow has faded as details have leaked out.
On the plus side, the plan would pave the way for commuter rail in Central Florida, where relief is needed for creep-and-crawl traffic. Given that Tampa is joined at the hip with Orlando, our regions should support one another's opportunities, where it makes sense.
Another benefit is the business success of CSX, a Fortune 500 company doing so well that it plans to buy back $3 billion worth of stock. It's good for Florida when companies headquartered here exceed the expectations of shareholders and customers. Stalwart companies help drive our economy and create a backbone for community giving and civic-mindedness.
Still, there's a substantial downside to the proposal to relocate a freight line and railyard from Orlando to Polk County.
The hub would generate a new stream of mile-long trains that would change the character of such communities as Plant City, Dade City, Lakeland, Ocala and Wildwood.
The railroad failed to alert these communities before the deal was inked, another significant flaw.
Feeding At The Public Trough
Before discussing the plan in depth with our visitors, we had to pardon our interruption.
Something's been sticking in our craw.
Plainly put, people in this community find CSX to be an arrogant, dictatorial and enormously frustrating company to deal with. It exudes a culture of secrecy and issues half-truths that hurt its credibility.
The executives weren't surprised by our assessment. They've heard it before. In their defense, they said CSX is a private company answerable only to shareholders, customers and the Federal Railroad Administration. Their business hauls freight, not commuters, and they see no role in helping urban communities address transportation problems. They say communities get upset when they hear that news.
Fair enough. The railroad is a private company, and free enterprise is a cornerstone American value.
But once the railroad started asking taxpayers for handouts, the dynamic changed.
Taxpayers are footing the bill for more than 20 rail projects in this state, including lines through the boondocks, and they deserve a seat at the table.
If private companies are unwilling to advance the public good, they should not feed at the public trough.
Finally, Some Answers
But back to brass tacks. This newspaper, led by reporters Lindsay Peterson and Billy Townsend, has drawn back the curtain on CSX this year to reveal a culture that, quite frankly, treats Florida taxpayers like serfs.
It's not the nature of this editorial board to scold people who come to visit. We prefer a lively exchange. But someone had to talk straight with this company who would be king.
First, we asked why taxpayers must pay flagmen exorbitant sums to sit and watch highway repairs, even those a good distance away from railroad crossings. The Trib has reported the railroad refuses to negotiate fees with local governments and that's that.
Ellen Fitzsimmons, senior vice president-law and public affairs for CSX, said the railroad is held hostage by union rules and federal regulations. But CSX is no victim. Union contracts can be renegotiated and federal regulations rewritten if the company made them a priority. But CSX has no incentive to change.
Next, we probed their claim that the hub will create 8,500 jobs in Polk County. The Trib has reported that CSX promises only 200 jobs, a number that could grow to 2,000 if a second phase proceeds, but there are no guarantees. Our visitors said the number includes spillover jobs created at convenience stores and dry cleaners, but the nuance is missing from their public proclamations.
And regarding that second phase. CSX initially pitched a phased project so as to avoid the legal tripwire for a Development of Regional Impact, a category of development that requires greater environmental reviews and the mitigation of negative impacts on roads, water systems and schools. Without question, this hub will have a regional impact, and it was duplicitous of the railroad to suggest otherwise.
That's the problem with CSX. It's hard to trust.
Yet on one point they were crystal clear. The railroad has little-to-no interest in helping Tampa achieve its transit dreams. CSX owns no parallel rail lines here that would allow freight trains to share tracks with commuter trains.
Tampa Mayor Pam Iorio, who received a similar visit, has all but given up on using CSX lines for commuter rail. To work, she says the rail line must place a priority on commuters, not freight.
We wouldn't call our meeting pleasant, though it was certainly an icebreaker.
We hope our visitors took our concerns back to CSX President Michael Ward. For if the railroad wants this region to embrace this project, which will cause more inconvenience than benefit, culture change must come from the top.