JACKSONVILLE, Fla. — Activist investor Ancora Holdings, which recently announced it had taken an increased stake in CSX, is increasing pressure on the railroad to pursue a merger.
The hedge fund today released a letter it had sent to the CSX board on Aug. 6, saying the board “needs to announce in the near term that it is working with identified third-party advisors to explore a range of merger options,” and arguing that “no railroad has more to lose than CSX” if the Union Pacific-Norfolk Southern merger takes place.
The move came on the same day that Reuters reported another activist investor, Toms Capital, has requested a meeting with the CSX board, raising expectations it, too, would push for a merger.
Ancora’s letter also attacked the performance of the railroad under CEO Joe Hinrichs, as it had when Ancora Alternatives President James Chadwick discussed the company’s investment in CSX during a July interview on CNBC [see “Activist investor may target CSX …,” Trains.com, July 31, 2025].
Ancora’s letter, signed by Chadwick and Ancora Holdings CEO Fredrick D. DiSanto, claims that under Hinrichs, CSX has shown “anemic stockholder returns,” “disastrous operational performance” (which it defines as the railroad’s increase in operating ratio from 58% to 67%), “poor personal selection” in the form of “a leadership team of junior varsity executives,” and its failure to pursue merger discussions.
The letter says it is “imperative” the railroad holds merger discussions with both BNSF and CPKC “to explore all options for maximizing shareholder value.
“The reality is that BNSF is a cash buyer that would bring a highly disciplined approach to any negotiations, rendering CSX in a vulnerable position if it does not have alternative parties to speak with. We believe CPKC, under the leadership of Keith Creel, represents a compelling partner for CSX as it looks to compete in a new railroading environment.”
The letter suggests the Ancora could push to have Jamie Boychuk, the CSX chief operating officer ousted in August 2023 that Ancora calls a “railroad operations superstar” (while misspelling his name as Boychuck) take over from Hinrichs. “If a deal cannot be struck,” the letter reads, “we assume it will not take us running a proxy contest to ensure a qualified operator, like Mr. Boychuck or someone with similar credentials, replace Mr. Hinrichs.”
Ancora waged an unsuccessful proxy battle to replace Norfolk Southern CEO Alan Shaw in 2024, although three of its candidates were elected to the NS board, and Ancora and the railroad reached a settlement late last year [see “Norfolk Southern to add new board member …,” Trains.com, Nov. 14, 2024]. Had Ancora won the proxy fight, it planned to install Boychuk as chief operating officer.
Labor organizations decried Ancora’s latest move, with the Transportation Communications Union/International Association of Machinists and Brotherhood of Railroad Carmen saying the firm would seek short-term profits at the expense of CSX’s long-term health.
“Ancora’s plans are nothing more than another version of Precision Scheduled Railroading, and the entire country has seen the damaging effects that model has had on our industry,” Artie Maratea, national president of TCU/IAM, said in a statement. It said Boychuk held a senior position during a period of significant service issues and that “it is difficult to imagine Mr. Boychuk being a part of any business model that seeks to keep CSX Transportation moving in the right direction.”
Said BRC General President Don Grissom, Our members’ ability to do their jobs in properly inspecting and repairing freight cars is critical. We have seen firsthand the devastating results at other railroads when these priorities are ignored.”
Under its current leadership, CSX has made real progress. Maratea continued: “CEO Joe Hinnrich’s leadership played a large part in reaching a timely agreement without invoking mediation for the first time in recent history. Nothing is perfect but we’ve come a long way and we need to keep moving forward. I am confident Ancora does not have the long term interest of CSX or its employees at heart.”
Meanwhile, the Reuters report says that while it is unclear what Toms Capital seeks out of its meeting request with the CSX board, but Benjamin Pass, head of the hedge fund, has a history of pushing for mergers at other companies. Ancora says another hedge fund, Third Point, has also taken a stake in CSX.
— Updated at 7 p.m. CT with unions’ statement on Ancora involvement at CSX.
Well Ancora, now that BNSF and CPkc have both said NO, who is next? CN? I doubt they want that honor of working with your boy Boychuk. Leave CSX alone and see if things don’t get better. I think Hinrichs did a yeoman’s job before the storms and most likely will be able to do it again. Why? because he has customers, employees and the communities on his side, unlike you who only has a bunch of circling sharks hoping that more bad happens to good people and a good railroad SO YOU CAN PROFIT ON THEIR LOSS, damn the consequences…
I suspect Joe HInrichs is checking his past as far back as he can. No doubt Alan Shaw’s peccadillo is remembered…
Who do you think hired the PI to investigate Shaw? It wasnt NS.
The first thing he will do is add a security force specific to him. Actually that was one reason he was let go.
He is not, nor will he ever be Hunter Harrison.
CSX has not rebounded from Precision Scheduled Railroading to this day.
By the way, Precision Scheduled Railroading is nothing more than “Lean Six Sigma” applied to railroading. Harrison saw it, read the first chapter of the “Dummies” version and light bulbs started flashing.
No kidding. Google “Lean Six Sigma”.
Hinrich has more than a pencil, he has understanding of what problems his pencil is causing.
Like I said earlier, “CSX has yet to recover from Boychik’s first round.”
There won’t be a merger. Another railroad will just buy the scrap that was once a powerhouse railroad.
Well it won’t be BNSF or CPkc! Maybe UP can get a deal on NS and CSX,,,,,,nah,,,,JUST KIDDING!
Currently USS (United States Steel) has a legal action against Ancora for the distribution of false information related to a proxy issue. Jamie Boychuk is listed as one of the principals of Ancora.
https://www.sec.gov/Archives/edgar/data/1163302/000092189525000875/dfan14a06470052_03252025.htm
Sounds similar to what Ancora did with NS.
Jamie Boychuk earned 5M in total compensation in his last year at CSX according to several corporate reporting sites.
I know Joe Hinrichs. I had the great fortune of hearing his presentation to the Chicago North American Rail Shippers Conference in May 2023. He spoke from the heart. Understanding railroads are economic entities, they also service America nationwide and are often the “heart” of communities they serve and the people they employ.
What struck me about Hinrichs is that he understands railroading is not just about margins or operating ratios. It’s about people. He asked the right question: “What’s it costing us to have employees not motivated, mad, quitting and leaving?” That’s not weakness—that’s leadership. Hinrichs sees what too many in finance miss: engaged employees create better service, better service earns customers, and loyal customers deliver long-term shareholder returns.
Contrast that with the latest noise from Ancora Holdings. They are circling CSX like vultures, demanding a “strategic merger” and calling for Hinrichs to be replaced by executives who already presided over rail service meltdowns. Ancora doesn’t care about service, safety, or the communities railroads sustain. They care about short-term stock pops. Their playbook is the same one that wrecked CSX in 2017—slash assets, cut employees to the bone, and call it “efficiency.” The Surface Transportation Board has already warned that such financial engineering undermines growth, resiliency, and even national security.
Sure. We can revisit Staggers and reaffirm the railroads’ common carrier obligations to the United States. However, Wall Street needs to sit the Hell down on this. Railroads are not hedge fund toys. They are arteries of the U.S. economy. They move food, fuel, steel, and chemicals that underpin daily life. Leaders like Hinrichs understand that responsibility. Hedge funds like Ancora see only quarterly targets.
Hinrichs, by contrast, has delivered improved service metrics, labor stability, and profitability—all while negotiating paid sick leave and restoring trust with employees and customers. That’s the “new era” in railroading that STB Chairman Martin Oberman has praised.
The difference is profound: one builds, the other bleeds. If we want a rail system that serves the economy, workers, and shareholders alike, we should reject the vultures and back leaders like Joe Hinrichs—leaders who know that the heart of railroading is its people, not just its balance sheet.
Well said Mr. Watt.
Agreed. That was a high “WATTage” statement…. I know, BRUH!
It would be nice to know how much Ancora pays Jamie Boychuk to use him as their big stick.
It should be Hedge Fund not fun. Hinrichs is doing an amazing job. Proud to be a shareholder.
Boychuk is inept, pure & simple. He will have to have security with him all the time if Ancora wins. His employees already hate his guts!
Ancora acts like Hurricane Helene and other similar storms never happened in 2024, These hurricanes required CSX to spend HUGE amounts of capital to rebuild/rehabilitate lines destroyed by these storms. The real assassin here is CEO Frederick DiSanto who appeared on MSNBC and while extoling the positives of the UP Purchase of NS, immediately began to excoriate CSX CEO Joe Hinrichs for the reversal of CSX’s low 60’s Operating Ratio to the mid to high 60’s. In the interview, he said nothing about the issues caused by Helene as if to say, “that’s not my problem…” What was CSX supposed to do? Nothing, like the Biden Administration’s lack of response in the mid Atlantic states hit hard by Helene? This type of response is exactly what train followers expect from an investment group ONLY INTERESTED IN MAKING A BUCK WITHOUT REGARD TO THE SIUATION AT HAND. In business reasonable people consider this a problem caused by the principle of Force Majeure and a principle cause in that clause defined as an Act of God. To Ancora, That Act of God (Helene) was the fault of CSX. How ridiculous… What some investors will do to line their pockets even if it results in poorer performance in the long run by the entity they have purchased an interest in for its other investors, employees and the community they serve. I have worked for one of these kind of companies invested in by these types of investors, THEY NEVER WORK OUT FOR ANYONE INSIDE THE COMPANY, only the, what I call, the predatory investor. Such is Ancora… A PREDATOR…
Totally agree with you Vincent. I have never seen a Hedge Fun any business for the good of employees and customers. The examples I have seen there is not enough room to list here.
CSX is doing just fine under the current circumstances.
Well not if “Take it down to the studs” Boychuk gets put in charge… If that happens, not even BNSF would want to merge with CSX. Of course, Keith Creel would be thrilled to possibly get another railroad whose price might sink to a level he could afford. Of course, this merger (CSX /CPkc) would be different that the one with KCS. It would be under the same rules as UP-SP and maybe it would be CSX merging the CPkc instead of the other way around. There is no way CPkc could come up with the cash after overpaying for KCS…
How about exConrail CEO Dave LeVan.
He’s doing poker runs on his Harleys. Doubt he’d want to give up THAT lifestyle to deal with the hedgies, politicians and unions. Who could blame him?
I’m no businessman, but I feel like I don’t know another industry where the investors care so little about running a good operation versus stripping as much profit away at the cost of everything else. It’s business, I get it to a point, but with Class I’s it seems to be at a whole other level.
Roger that!
Once again, the vultures are circling. And as usual, they have no interest in running a profitable railroad, only in stripping as much cash from it as their greedy hands can grab.
Being a small “owner”, I don’t have any issues with CSX performance, given all the issues in play, especially the weather and that tunnel project. We don’t need these big money goofs running stuff, except running it into the ground. I think if there are big changes, I think we can say goodby to the CSX employee appreciation events among other things. Not a good picture. IMO, if Ancora has a better plan, they should bring it to the stockholders for approval.
Tell Ancora, they they are a little ahead of themselves. They don’t even know if the STB and Congress will allow any mergers like this.
Fishing expedition.
Correct, it’s not a done deal. But if the UPRR-NS merger is blocked, Norfolk Southern walks away with 2 or 3 billion in cash that it could by in large use to improve it’s operations. That should be a concern for other RRs, especially CSX.
Not true…NS only gets the money if UP calls it off. The whole purpose of that amount was to keep NS from negotiating with BNSF, the only other railroad who could afford that kind of pill to swallow, But Alas, BNSF isn’t interested. And sinced I doubt NS has an extra 2.5 billion laying around to pay UP, I’s say they sink or swim together. If it doesn’t go forward because of the STB, I;d say you see UP and NS enter into the same kind of agreement that BNSF and CSX just worked out, Almost as good as a merger and no being forced to give away lines to low budget interlopers, those who can’t get anything any other way but free…
FWIW: City of Jacksonville just announced they are going to tear down the Prime Osborn Convention Center hanging off the back of the old Jacksonville Terminal.
The Terminal with stay for some future Amtrak/Brightline station, but the land that was the rail yard ages ago is being given to the University of Florida for the new medical graduate campus being built in the neighborhood.
Since Gen. Thomas Rice, Prime Osborn and Hays Watkins are now all gone where in the world can CSX find a “railroader” to run the place and let these investors go find a short bridge to run off from………..
Where are my manners, to leave off Champ Davis from that list would get me off the dinner table from sure!
Alfred Perlman (sp??) — the good that he did on the New York Central Water Level Route almost wrecked by Hunter Harrison.