CSX Corp sees increases in shipment volume at its railroad outpacing gross domestic product and industrial product gains this year as consumer demand and its intermodal business grow. The company, which reported record first quarter results after the market closed on Tuesday, said that its core price increases would also continue surpassing rail inflation.

CSX, the second largest publicly held US. railroad, said first-quarter shipments rose in all of its major markets in the quarter, and it sees more growth as the economic recovery takes hold.

Mr Michael Ward CEO said that "We're bullish on the economy reiterating his fourth-quarter call for record 2011 results.”

Chief Sales and Marketing Officer Clarence Gooden said that its volumes rose 7% in the quarter despite a succession of disruptive winter storms. Surcharges also offset much of the added USD 119 million in fuel costs. Transport demand has shifted from the roads to the more fuel-efficient rails as fuel prices spiked. Intermodal, the shipment of goods in containers that move from one form of transportation to another, is CSX's fastest-growing segment, the company said. Intermodal accounted for 35% of first quarter container shipments.

CSX exported a quarterly record of almost 11 million tons of coal and expects 40 million tons in 2011 on robust global demand and supply constraints outside of the United States. That would top the prior annual record of 30 million exported coal tons set last year and nearly double the 22 million tonnes exported in 2009. Domestic coal volume is likely to slip to the 140 million ton range this year from about 166 million last year, mainly due to low natural gas prices.

(Sourced from Reuters)