ZACKS·2025-10-02 14:31Core Insights - CSX Corporation has reopened the expanded Howard Street Tunnel, a significant infrastructure project costing over $450 million, aimed at modernizing freight rail service along the East Coast [1][7] - The expansion will eliminate a critical bottleneck on the I-95 corridor, allowing double-stacked intermodal trains to pass through Baltimore by early 2026, enhancing CSX's operational efficiency and competitive advantage [2][7] - The project was a result of a public-private partnership involving CSX, the State of Maryland, the U.S. Department of Transportation, and the Federal Railroad Administration, modernizing a 19th-century structure while maintaining its historical integrity [3] Company Performance - CSX has been actively rewarding shareholders through dividends and buybacks, recently increasing its quarterly dividend by 8% to 13 cents per share in February [4][7] - The company is recognized for its strong free cash flow generation, which supports its shareholder-friendly initiatives [4] Industry Context - Other companies in the Zacks Transportation - Rail industry, such as Union Pacific and Norfolk Southern, have also demonstrated a commitment to returning value to shareholders through dividends and buybacks [4][6] - Union Pacific has consistently increased its dividends, returning $4.3 billion to shareholders in the first half of 2025 [5] - Norfolk Southern returned $1.85 billion to its shareholders in 2023, with a current quarterly dividend of $1.35 per share [6]