CSX CEO Joe Hinrichs told CNBC’s Jim Cramer on Wednesday that working with other railroad companies is the best way to solve problems in the industry and grow value.
“We’ll open all possibilities to create value for shareholders, properly grow the business and serve our customers better,” he said. “We can do all of those by working with other railroads.”
Wall Street has had eyes on the railroad sector in recent months as Union Pacific announced plans to buy competitor Norfolk Southern. Earlier this month, activist investor Ancora urged CSX to pursue near-term merger options or remove Hinrichs from his position, warning that the merger between Union Pacific and Norfolk Southern would put the company at a disadvantage.
According to Hinrichs, a merger is not necessary for the company to increase efficiency and give customers a “seamless experience.” He said merging is an “option,” and that the company would consider doing so if they received an offer.
But Hinrichs said CSX is currently focused on its recent partnership with Berkshire Hathaway‘s BNSF Railway, which would create new coast-to-coast railroad services meant to make freight transportation faster and more efficient. According to Hinrichs, the partnership means the companies can come together and improve business without waiting for any sort of regulatory approval.
Berkshire Hathaway Chairman Warren Buffett told CNBC he had met with Hinrichs in early August, but that the company was not interested in buying CSX.
Hinrichs also denied that Berkshire-Hathaway made an acquisition offer.
“But they made it clear they want to work together to solve these problems and create growth opportunities for all of us,” Hinrichs said of Berkshire Hathaway. “And that’s the important point.”
