Estimated Completion Date of Panama Canal Expansion
Has been pushed back to January 2016. First the Spanish constructions balked, caused a delay, and wanted more money. Then union workers went on strike, wanting more money. None of those whose livelihoods depend on the expansion want the project to end, because when it ends, they lose their jobs. They all want it to go on forever. Geez, at the rate they keep pushing back the completion date, I'll be dead and gone before my investment in CSX pays off through the increase in traffic due to the completion.
Dead before increase in traffic due to completion on Panama Canal.... perhaps not ! Several other issues
will be in play. The Container companies that have grown their fleet of ships from 6K to 10K size will visit
the east coast ports that have dredged to accommodate these larger ships via the Suez Canal. The real
key to growth for east rails will depend more on the Ports abilities. When the Panama is completed more
traffic will come via shorter route....but container and ports will not be held back due to Panama delays.
Growth will force this issue if the trade agreements (TPP with Asia and TTIP with EU) are in force prior
to Panama completion. Also take into account the DOT placed restrictions on trucks by lowering hours
of operation from 84 to 70 per week and also stated they will add more restrictions on trucks if they don't
give up 50% of all movements that exceed 500 miles... to rails. The DOT issue is HUGH... and also
why CSX target is the 9 million truck loads in 2012 that exceed 550 miles... that can move on CSX.
CSX has stated they expect double-digit EPS growth for the next decade..... I can see why and that
is my excuse for being on the good ship lollypop.....lol