CSX Corporation

Efficient scale is CSX’s core advantage: it operates one of only two Class I rail networks in the Eastern U.S., where nearly two thirds of the U.S. population resides, with interchanges to more than 240 short lines and access to over 70 ports.

Recreating right-of-way, terminals, crew bases and regulatory permissions is effectively impractical, particularly at the density of the East. Network effects with short lines and ports add stickiness and system relevance. Rail’s structural cost and emissions advantages over trucking further reinforce the moat on long hauls.

Offsets include cyclical volumes in industrial end markets and secular coal decline. Regulatory actions like forced switching could erode pricing in pockets, though the 2024 reciprocal switching rule was vacated in 2025, reducing immediate risk.

Sub-scores: efficient scale very strong, network effects strong, cost advantage strong, switching costs moderate, intangibles modest.