CSX CORP (CSX) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that CSX CORP surfaced in its latest filing.

• CSXT has a legal common-carrier obligation to transport hazardous materials under federal mandate.
• A TSA security directive applies to rail carriers that ship hazardous materials and imposes significant security requirements; Department of Homeland Security regulations require additional security protocols for hazardous material transport.
• Legislation preventing hazardous-material transport through certain cities could increase CSXT's network congestion, increase length of haul, increase operating costs, and increase accident risk.
• CSXT has experienced rail network difficulties related to locomotive or crew shortages.
• EPA regulations targeting emission reductions could reduce coal-fired electricity generation and consumption of coal, impacting coal volumes and revenues.
• Pending or proposed laws or regulations could increase fuel, capital and other operating costs and negatively affect operating and fuel efficiencies, and could make it difficult for customers to produce products cost competitively.
• CSX may become subject to legal requirements to disclose climate-related information, and to demands or expectations by supply chain partners, customers or other stakeholders to disclose climate risk or set related targets.
• The Company has been subject to allegations or findings of violations or strict liability under environmental laws.
• The Company may incur costs exceeding recorded reserves for known and reasonably estimable future environmental costs.