Producer
CSX Corporation
Class I freight railroad; operates ~18 captive quarries producing crushed-stone track ballast.
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Inputs supplied
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Goods downstream
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Facilities
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Stories
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1 input CSX Corporation supplies
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What else they do
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Freight rail transportation
Captive aggregate / quarry operations
Real estate & right-of-way
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Did you know2024
A Class I railroad is, hidden inside, a crushed-stone mining company. CSX owns roughly 18 quarries whose entire purpose is to produce the crushed-stone "ballast" that beds its track — and it self-supplies rather than buying because hauling heavy, low-value rock on its own rails costs it almost nothing at the margin, so owning the quarry beats paying a merchant supplier plus freight. The same crushed stone CSX mines for ballast is, in any other context, ordinary construction aggregate. So a freight railroad quietly operates a significant aggregate business, and the rail-ballast and construction-aggregate supply chains touch through one company's vertical integration — a mining operation tucked inside a transportation company.
CSX Corporation ↗Concentration2024
U.S. freight rail is a set of regional duopolies. CSX and Norfolk Southern split the territory east of the Mississippi; Union Pacific and BNSF split the West. Many industrial shippers — power plants, chemical works, grain elevators, auto plants — are "captive," meaning their facility is physically served by a single Class I railroad with no competing track. That gives railroads durable pricing power and makes the inland freight network a federally regulated near-monopoly rather than a competitive market. For a huge swath of the eastern United States, CSX is one of only two railroads that exist, and for captive customers, effectively the only one — a concentration that shapes the delivered cost of coal, chemicals, grain and finished goods across half the country.
CSX Corporation ↗