CSX discloses reduction of locomotives in maintenance program
According to a regulatory filing from earlier, CSX said it will reduce the number of locomotives in its maintenance program. The company said that it has a commitment under a long-term maintenance program agreement that covers a portion of CSXT's fleet of locomotives. The program costs are based on the maintenance cycle for each covered locomotive, which is determined by the asset's age and type. Expected future costs may change as required maintenance schedules are revised and locomotives are placed into or removed from service. Under CSXT's current obligations, the agreement will expire no earlier than 2031. On August 9, 2017, the company exercised certain rights under the agreement, which resulted in a reduction of the locomotive fleet covered from 50% as of December 30, 2016 to an estimated 34% of locomotives beginning August 2018. As a result, the total remaining payments decreased from approximately $5B at December 30, 2016 to an estimated $1.7B at September 30, 2017.