CSX CSX Corporation

By Tess Stynes 

CSX Corp. is closing mechanical shops in Corbin, Kentucky, as the railroad operator continues to respond to lower coal traffic volume.

The Jacksonville, Fla.-based company said roughly 180 employees will be affected at the Corbin operation--which serves trains moving coal from central Appalachia--although some of the workers will be offered relocations.

Roughly 100 engineering and transportation workers will remain at the Corbin operations to support and manage traffic at the rail yard, which will remain open. CSX said a small number of mechanics also will remain to support train operations.

The move comes less than a week after CSX said it would reduce train operations in Erwin, Tenn., a move that will affect roughly 300 employees.

As lower natural-gas prices prompt power plants to switch fuels, coal volumes transported by rail have fallen about 9% year-to-date, according to the Association of American Railroads. It is the largest traditional commodity group for U.S. railroads, comprising nearly a fifth of total rail traffic at more than 4 million carloads of coal so far this year.

To control costs, CSX recently said it is running longer trains--lengths were up 10% in the third quarter compared with the same quarter a year ago--and reducing its workforce. In the fourth quarter, its average head count will be down 6%. The company employed an annual average of 32,000 employees in 2014, according to its annual filing with the Securities and Exchange Commission.

Laura Stevens contributed to this article.

Write to Tess Stynes at tess.stynes@wsj.com

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(END) Dow Jones Newswires

October 20, 2015 10:23 ET (14:23 GMT)

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