CSX Corporation (CSX) 2016 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the CSX Corporation second-quarter 2016 earnings call. As a reminder, today's call is being recorded.

各位女士、先生，早安，歡迎參加 CSX Corporation 2016 年第二季財報電話會議。提醒各位，今天的會議將會錄音。

(Operator Instructions)

（接線員指示）

For opening remarks and introductions, I would like to turn the call over to Mr. David Baggs, Vice President, Treasurer and Investor Relations Officer for CSX Corporation.

接下來進行開場致詞與介紹，我想把電話交給 CSX Corporation 副總裁、財務主管暨投資人關係主管 David Baggs 先生。

Thank you, Prima, and good morning everyone and again welcome to CSX Corporation's second-quarter 2016 earnings presentation. The presentation material that we will be reviewing this morning, along with our quarterly financial report and our safety and service measurements, are available on our website at CSX.com under the investors section. In addition, following the presentation, the webcast replay will be available on that same website.

謝謝你，Prima，各位早安，再次歡迎參加 CSX Corporation 2016 年第二季財報簡報。我們今天早上將審閱的簡報資料，以及我們的季度財務報告與安全及服務衡量指標，皆可於 CSX.com 網站的投資人專區取得。此外，簡報結束後，網路直播重播也將在同一網站提供。

This morning, our presentation will be led by Michael Ward, the Company's Chairman and Chief Executive Officer, and Frank Lonegro, our Chief Financial Officer. In addition, Cindy Sanborn, our Chief Operating Officer, and Fredrik Eliasson, our Chief Sales and Marketing Officer, will be available during the question-and-answer session.

今天早上的簡報將由公司董事長兼執行長 Michael Ward 與財務長 Frank Lonegro 主持。此外，營運長 Cindy Sanborn 與銷售暨行銷長 Fredrik Eliasson 將在問答環節中出席。

Now before I turn the presentation over to Michael, let me remind everyone that the presentation and other statements made by the Company contain forward-looking statements. You are encouraged to review the Company's disclosure and the accompanying presentation on slide 2. The disclosure identifies forward-looking statements as well as the uncertainties and risks that could cause actual performance to differ materially from the results anticipated by these statements.

在我把簡報交給 Michael 之前，先提醒各位，本簡報及公司所作的其他陳述包含前瞻性聲明。建議各位查閱公司揭露文件以及簡報第 2 頁。該揭露說明了前瞻性聲明，以及可能導致實際表現與這些聲明所預期結果出現重大差異的不確定性與風險。

In addition, at the end of the presentation we will conduct a question-and-answer session with the research analysts. With nearly 30 analysts covering CSX and out of respect for everyone's time, including our investors, I would ask as a courtesy for you to please limit your inquiries to one question and if necessary a clarifying question on the same topic.

此外，在簡報結束時，我們將與研究分析師進行問答環節。由於有將近 30 位分析師追蹤 CSX，為尊重各位（包括投資人）的時間，敬請每位提問者以一個問題為限，如有需要，可就同一主題再提出一個釐清問題。

And with that, let me turn the presentation over to CSX Corporation's Chairman and Chief Executive Officer, Michael Ward. Michael.

那麼，接下來我把簡報交給 CSX Corporation 董事長兼執行長 Michael Ward。Michael。

Thank you, David, and good morning, everyone. Yesterday, CSX reported second-quarter earnings per share of $0.47 compared to $0.56 per share in the same period last year. Revenue declined 12% in the quarter as strong pricing across nearly all markets was more than offset by the impact of a 9% volume decline which included a 34% decline in coal as well as negative mix and lower fuel recovery.

謝謝你，David，各位早安。昨天，CSX 公布第二季每股盈餘為 0.47 美元，去年同期為 0.56 美元。本季營收下滑 12%；幾乎所有市場的強勁定價，仍被運量下滑 9% 的影響所抵銷，其中包括煤炭運量下滑 34%，以及不利的產品組合與燃油回收降低。

Regarding operating performance, CSX continued to deliver strong safety performance and service continued to meet and exceed customer expectations and drive further efficiency. In the quarter, CSX continued to aggressively and successfully reduce its cost structure throughout the network, recognizing that this Company's long-term future is built on a fluid and efficient network serving primarily intermodal and merchandise markets.

就營運表現而言，CSX 持續交出強勁的安全績效，服務水準也持續符合並超越客戶期待，並帶動進一步效率提升。本季，CSX 持續在整個網路中積極且成功地降低成本結構，因為我們認知到，公司長期未來建立在一個順暢且高效率的網路之上，主要服務聯運與一般貨運市場。

Despite these cost-saving actions, operating income declined $177 million to $840 million. At the same time, the operating ratio increased 210 basis points year over year to 68.9.

儘管採取這些節省成本的行動，營業利益仍下滑 1.77 億美元至 8.40 億美元。同時，營業比率（Operating Ratio）年增 210 個基點至 68.9。

Now I will turn the presentation over to Frank who will take us through the second-quarter results and third-quarter outlook in more detail. Frank.

接下來我把簡報交給 Frank，他將更詳細說明第二季結果與第三季展望。Frank。

Thank you, Michael, and good morning, everyone. Let me begin by providing more detail on our second-quarter results.

謝謝你，Michael，各位早安。我先從提供第二季結果的更多細節開始。

As Michael mentioned, revenue was down 12% or $360 million versus the prior year, driven primarily by lower volumes. Total volume decreased 9% which impacted revenue by about $260 million. In addition, fuel recoveries declined $98 million.

如 Michael 所提，營收較去年同期下滑 12%，或 3.60 億美元，主要由較低運量所致。總運量下滑 9%，對營收影響約 2.60 億美元。此外，燃油回收減少 9,800 萬美元。

We continue to see strong core pricing from an improving service product which for the second quarter was up 2.9% overall and 4.0% excluding coal. However, this was partially offset by negative business mix in the quarter.

我們持續看到核心定價表現強勁，受惠於服務產品改善；第二季整體上漲 2.9%，若排除煤炭則上漲 4.0%。然而，本季部分被不利的業務組合所抵銷。

Other revenue decreased $29 million driven mainly by lower incidental charges and coal-related revenue from affiliate railroads. Expenses decreased 9% versus the prior year, driven mainly by $96 million in efficiency gains, $86 million in lower volume-related costs and $56 million in lower fuel prices.

其他營收減少 2,900 萬美元，主要因附帶費用較低，以及來自關係企業鐵路的煤炭相關收入下降。費用較去年同期下降 9%，主要來自 9,600 萬美元的效率提升、8,600 萬美元的運量相關成本降低，以及 5,600 萬美元的燃油價格下降。

Operating income was $840 million in the second quarter, down 17% from last year. Looking below the line, interest expense was up slightly from last year with higher debt levels partially offset by lower rates while other income was relatively flat to the prior year. And finally, income taxes were $262 million in the quarter with an effective tax rate of about 37%. Overall, net earnings were $445 million, down 20% versus the prior year, and EPS was $0.47 per share, down 16% versus last year.

第二季營業利益為 8.40 億美元，較去年下滑 17%。在營業利益以下項目方面，利息費用較去年略增，較高的負債水準部分被較低利率所抵銷；其他收入與去年大致持平。最後，本季所得稅為 2.62 億美元，有效稅率約 37%。整體而言，淨利為 4.45 億美元，較去年同期下滑 20%；每股盈餘為 0.47 美元，較去年下滑 16%。

Now let me turn to the market outlook for the third quarter. Looking forward, we expect year-over-year volumes to decline in the third quarter in the mid to high single-digit range. Despite some markets growing, the majority of our markets will be down with the most significant declines continuing to be concentrated in coal and crude oil.

接下來談第三季市場展望。展望未來，我們預期第三季運量年減幅度將落在中到高個位數。儘管部分市場成長，我們多數市場仍將下滑，其中最顯著的下滑仍集中在煤炭與原油。

Automotive is again expected to grow as light vehicle production remains higher on a year-over-year basis. Minerals volume will be higher with the continued ramp-up of new fly ash remediation business and ongoing strength in construction which drives demand for aggregates. Agricultural products are expected to decline as the strong dollar and low commodity prices continue to pressure both domestic and export shipments.

汽車業務預期將再次成長，因為輕型車產量在年比基礎上仍維持較高水準。礦物運量將增加，受惠於新的飛灰整治業務持續放量，以及建築業持續強勁帶動骨材需求。農產品預期將下滑，因強勢美元與低商品價格持續壓抑國內與出口出貨。

Chemicals will be down due to the continued declines in shale-related products resulting from low crude oil and natural gas prices. We expect crude oil volume to be moderately lower on a sequential basis.

化學品將下滑，原因是低原油與天然氣價格導致頁岩相關產品持續下降。我們預期原油運量在季比基礎上將小幅下降。

Domestic coal will continue to be unfavorably impacted by an excess supply of natural gas at a price point that favors gas burn over coal in the East. In addition, coal inventories remain high and year-over-year volume declines will continue to be significant, although less severe than the second quarter due to softer comps in the back half of 2015.

國內煤炭將持續受到不利影響，因天然氣供給過剩且價格水準使得美東地區以燃氣發電相較燃煤更具優勢。此外，煤炭庫存仍偏高，運量年減仍將顯著，惟由於 2015 年下半年比較基期較弱，降幅將較第二季和緩。

Export coal should be moderately lower in the second half of the year from the first-half tonnage run rate consistent with the seasonality we have seen in recent years. Despite modest improvements in the met and thermal benchmarks the export market will remain pressured by the strong US dollar and global oversupply.

出口煤炭在下半年相較上半年噸數運行率預期將小幅降低，符合我們近年觀察到的季節性。儘管冶金煤與動力煤基準價格略有改善，出口市場仍將受到強勢美元與全球供給過剩的壓力。

That said, we saw more spot moves than anticipated in the second quarter. As such, we now expect full-year export coal tonnage of around 20 million tons. For the total call market, we continue to expect full-year tonnage declines of around 25% with third-quarter coal tonnage roughly stable sequentially to what we have seen in the first half of this year or approximately 22 million to 23 million tons in the quarter.

即便如此，我們在第二季看到的現貨運輸量高於預期。因此，我們目前預期全年出口煤炭噸數約 2,000 萬噸。就整體煤炭市場而言，我們仍預期全年噸數下滑約 25%；第三季煤炭噸數在季比上大致持平於今年上半年水準，約為本季 2,200 萬至 2,300 萬噸。

Intermodal is expected to be down as we continue to cycle prior competitive losses in international through the remainder of 2016. Domestic intermodal is anticipated to be roughly flat in light of difficult comps that reflected new business shifting to CSX in the third quarter of last year. Overall, our business continues to reflect a market environment driven by low crude oil, natural gas and broader commodity prices as well as continued strength in the US dollar.

聯運預期將下滑，因我們在 2016 年剩餘期間仍在消化先前於國際業務的競爭性流失。國內聯運預期大致持平，因比較基期偏高，反映去年第三季有新業務轉移至 CSX。整體而言，我們的業務仍反映由低原油、天然氣及更廣泛商品價格，以及美元持續走強所驅動的市場環境。

Turning to the next slide, let me talk about our expectations for expenses in the third quarter. Since last year we have taken aggressive cost actions which include reducing headcount by about 4,500 versus the prior year. As a result, we have achieved about $230 million of efficiency gains in the first half of 2016 and now expect full-year productivity savings to approach $350 million. We expect third-quarter expense to benefit on a year-over-year basis from our ongoing focus on driving efficiency gains and rightsizing resources.

接著看下一頁，談談我們對第三季費用的預期。自去年以來，我們採取積極的成本行動，包括相較去年同期將人力編制減少約 4,500 人。因此，我們在 2016 年上半年已達成約 2.30 億美元的效率提升，並預期全年生產力節省將接近 3.50 億美元。我們預期第三季費用在年比基礎上將受惠於我們持續聚焦推動效率提升與資源規模調整。

Looking first at labor and fringe, we expect third-quarter average headcount to be down slightly on a sequential basis. In addition, we expect labor inflation to be around $30 million in the third quarter. Finally, we expect a headwind in the third quarter of $25 million to $30 million versus the prior year driven by higher incentive compensation.

先看人事與附加福利，我們預期第三季平均人力編制將較前一季略降。此外，我們預期第三季人事通膨約 3,000 萬美元。最後，我們預期第三季相較去年同期將有 2,500 萬至 3,000 萬美元的不利因素，主要由較高的獎勵性薪酬所致。

As a reminder, in 2015 we saw incentive compensation decrease in the second half of the year as market conditions drove CSX's financial results below our initial plan.

提醒各位，2015 年下半年我們看到獎勵性薪酬下降，因市場狀況使 CSX 的財務結果低於我們最初的計畫。

Looking at MS&O expense, we expect efficiency gains and volume-related savings to more than offset inflation. As a result, MS&O costs are expected to be down moderately versus the prior year.

就 MS&O 費用而言，我們預期效率提升與運量相關節省將足以抵銷通膨。因此，MS&O 成本預期將較去年同期溫和下降。

Fuel expense in the third quarter will be driven by the lower cost per gallon year over year, reflecting the current price environment, volume-related savings and continued focus on fuel efficiency. We expect depreciation in the third quarter to increase around $20 million versus the prior year, reflecting the ongoing investment in the business.

第三季燃油費用將受年比每加侖成本較低所驅動，反映目前的價格環境、運量相關節省，以及持續聚焦燃油效率。我們預期第三季折舊費用將較去年同期增加約 2,000 萬美元，反映對業務的持續投資。

Finally, equipment and other rents in the third quarter are expected to be relatively flat to the prior year with the benefit of improved car cycle times offsetting higher freight car rates and the increase in volume-related costs associated with automotive growth.

最後，第三季設備及其他租金預期與去年同期大致持平；車輛周轉時間改善的效益，將抵銷較高的貨車租賃費率，以及與汽車業務成長相關的運量成本增加。

Now let me wrap up on the next slide. CSX's second-quarter results reflect success in a challenging freight environment with macroeconomic and coal headwinds impacting most markets, resulting in a 9% volume decline this quarter. This success is driven by pricing for the relative value of rail service, driving efficiency gains and aligning resources to the softer demand environment which partially offset those substantial volume headwinds.

現在讓我在下一張投影片做個總結。CSX 第二季的業績反映出在充滿挑戰的貨運環境中取得成功；宏觀經濟與煤炭逆風影響多數市場，使本季運量下滑 9%。這項成功來自於依據鐵路服務的相對價值進行定價、推動效率提升，並使資源配置與較疲弱的需求環境一致，從而部分抵銷了顯著的運量逆風。

Looking ahead, let me first provide an update on our 2016 capital investment. Projected capital investment has increased $300 million from our initial plan as CSX now anticipates accelerating payments for locomotives delivered throughout 2016 under a long-term commitment. We originally intended to pay for these locomotives in 2017.

展望未來，我先更新我們 2016 年的資本投資。由於 CSX 現在預期將加速支付 2016 年全年交付之機車的款項（依據長期承諾），預估資本投資較原先計畫增加 3 億美元。我們原本打算在 2017 年才支付這些機車的款項。

As such, 2016 capital investment is now expected to be $2.7 billion. By completing our locomotive purchase commitment this year we simultaneously clear the path in 2017 for CSX to begin returning to our long-term core capital investment guidance of around 16% to 17% of revenue.

因此，2016 年資本投資目前預期為 27 億美元。透過在今年完成機車採購承諾，我們也同時為 2017 年鋪路，使 CSX 能開始回到長期核心資本投資指引，即約占營收的 16% 至 17%。

As we think about market conditions for the remainder of the year, we expect macroeconomic and coal headwinds to continue. Low commodity prices and strength in the US dollar will continue to impact many of CSX's merchandise markets while natural gas prices below $3.50 and elevated stockpiles are driving significant headwinds in coal. As a result, we continue to expect total coal tonnage to decline around 25% for the whole year.

就今年剩餘期間的市場狀況而言，我們預期宏觀經濟與煤炭逆風將持續。低商品價格與美元走強將持續影響 CSX 許多一般貨物市場；同時，天然氣價格低於 3.50 美元且庫存水位偏高，正對煤炭造成顯著逆風。因此，我們仍預期全年煤炭總噸數將下滑約 25%。

Looking at our expectations for the third quarter and full year, we remain intensely focused on achieving strong pricing that reflects the value of CSX's service product, rightsizing resources with lower demand and pursuing structural cost opportunities across the network. As a result of these initiatives, we now expect efficiency gains to approach $350 million in 2016.

就第三季與全年展望而言，我們仍高度聚焦於：取得反映 CSX 服務產品價值的強勁定價、在需求較低時適度調整資源規模，以及在全網路追求結構性成本機會。受惠於這些措施，我們目前預期 2016 年效率提升將接近 3.5 億美元。

That said, the impact of current market conditions on CSX's volume, particularly in coal, is expected to outweigh our positive momentum. As a result, we continue to expect third-quarter and full-year 2016 earnings per share to be down from last year. Furthermore, as a reminder, third-quarter EPS is typically down sequentially from second-quarter results, reflecting the seasonality of our business.

不過，目前市場狀況對 CSX 運量（尤其是煤炭）的影響，預期將超過我們的正向動能。因此，我們仍預期 2016 年第三季與全年每股盈餘將較去年下滑。此外，提醒一下，第三季 EPS 通常會較第二季呈現季減，反映我們業務的季節性。

With that, let me turn the presentation back to Michael for his closing remarks.

接下來，我把簡報交回 Michael，請他做結語。

Thank you. As Frank discussed, it's clear this continues to be a challenging freight environment with plenty of macroeconomic headwinds. Thanks to the extraordinary work of our employees, CSX is delivering record levels of efficiency and rightsizing resources to the business demand of today.

謝謝。如 Frank 所述，很明顯這仍是充滿挑戰的貨運環境，且有許多宏觀經濟逆風。憑藉員工們卓越的努力，CSX 正交出創紀錄的效率水準，並依照當前的業務需求調整資源規模。

Looking longer term, the Company has a bright future as the men and women of CSX are simultaneously positioning the Company for growth where we have the resource flexibility to serve future demand. This will position CSX to maximize long-term opportunities in both our merchandise and intermodal markets. As a result, we continue to be enthusiastic about the core earning power of the Company as the market headwinds subside.

從更長期來看，公司前景光明；CSX 的男男女女同仁正同時為公司布局成長，並具備資源彈性以服務未來需求。這將使 CSX 能在一般貨物與聯運市場中把握長期機會。因此，隨著市場逆風消退，我們對公司的核心獲利能力仍保持高度信心。

As we work to transform this Company into the CSX of tomorrow, we must grow and make more profitable the merchandise and intermodal markets which represent our future. At the same time we will continue to preserve the business value of coal recognizing that it will become a smaller but still important part of our Company. Our future involves leveraging a premier highly efficient network that reaches diverse merchandise and intermodal markets and nearly two-thirds of the American consumers.

在我們致力於將公司轉型為「明日的 CSX」之際，我們必須擴大並提升一般貨物與聯運市場的獲利能力，因為它們代表我們的未來。同時，我們也將持續維護煤炭業務的價值，並認知其將成為公司較小但仍重要的一部分。我們的未來在於運用一個頂尖且高度高效率的網路，覆蓋多元的一般貨物與聯運市場，並觸及近三分之二的美國消費者。

It requires consistent excellent service for customers which in turn supports efficiency, profitable growth and pricing that allows us to continue investing for the future and includes technology solutions that drive an ever more safe, reliable and efficient railroad. As we manage today's business environment to deliver on the future potential we continue to focus on achieving a mid-60s operating ratio longer term to deliver compelling value for you, our shareholders.

這需要為客戶提供持續且卓越的服務，進而支撐效率、獲利成長與定價能力，使我們能持續投資未來；同時也包含以科技解決方案推動更安全、更可靠且更高效率的鐵路營運。在管理當前業務環境、實現未來潛力的同時，我們仍聚焦於長期達成 60% 中段的營業比率，以為各位股東創造具吸引力的價值。

And now we are pleased to take your questions.

現在我們很高興回答各位的提問。

(Operator Instructions) Rob Salmon, Deutsche Bank.

（接線員指示）Rob Salmon，德意志銀行。

Frank, I think on the last call you had indicated that with regard to the earnings cadence you thought the decline in Q2 would be the largest for the year. As I think out to the back half of the year with the puts and takes of coal being a little bit stronger than what you had anticipated in Q2, cost actions being a little bit more, how should I think about that earnings cadence as I look out?

Frank，我記得在上次電話會議中你提到，就獲利節奏而言，你認為第二季的下滑會是全年最大。當我展望下半年時，煤炭的利多利空看起來比你在第二季預期的稍微強一些、成本行動也多一些；我應該如何看待接下來的獲利節奏？

I think as we look at Q3 earnings on a year-over-year basis, we've mentioned that they will be down. We haven't sized that, as you know. We have got the challenging market environment that I know Fredrik will get into later in the call impacting the top line.

我想就第三季的獲利、以年對年來看，我們已提到會下滑；如你所知，我們尚未量化幅度。我們面臨具挑戰的市場環境，這會影響營收端；我知道 Fredrik 稍後會在電話會議中進一步說明。

There are comps that begin to ease as we get into the back half of the year. Although as we've mentioned volumes in the third quarter will be down mid to high single digits with crude down, international and intermodal losses and the coal as we've mentioned on a year-over-year basis down, as well. So we've got some negative mix.

隨著進入下半年，比較基期會開始趨於有利。不過如我們提到的，第三季運量將下滑中到高個位數百分比，原因包括原油下滑、國際與聯運流失，以及煤炭如我們所述也將年對年下滑。因此，我們的組合結構有一些不利因素。

And then moderating productivity as we get throughout the year. Obviously we have delivered about $230 million in productivity in the first half and that implies certainly moderating productivity level as you get into the Q3 and Q4.

此外，隨著年度推進，生產力提升幅度會趨於溫和。顯然我們在上半年已實現約 2.3 億美元的生產力，這也意味著進入第三季與第四季時，生產力水準勢必會有所放緩。

We tried to give you some clarity in the third-quarter remarks about where incentive comp might be and certainly with fuel prices where they are going and cycling some of the fuel positives that we had in the third quarter of last year, we are going to have a net fuel headwind, as well. So we have got some challenges looking ahead of us in the third quarter, but as I'm sure Cindy will mention later in the call everything is on the table on the productivity side and pricing continues to be a favorable given the environment.

我們在第三季展望的說明中，嘗試就獎酬性薪酬可能落點提供一些清晰度；同時，考量燃油價格走勢，以及去年第三季我們享有的一些燃油正面因素將進入比較期，我們也將面臨燃油的淨逆風。因此，第三季前方確實有一些挑戰；但我相信 Cindy 稍後會提到，在生產力方面一切選項都在桌上，而在目前環境下，定價仍持續偏有利。

When I think about the mix, that feels like it will be a little bit less fat in the third quarter. Fuel is probably going to be a little bit tougher. Do those two net out or does the fuel overwhelm the mix?

當我想到組合結構時，感覺第三季的不利程度會稍微小一些。燃油可能會更棘手一些。這兩者會互相抵銷嗎？還是燃油會壓過組合結構的影響？

Let me hit the fuel and then Fredrik will hit the mix one. So when you look at fuel, we had about a $7 million in-quarter challenge in the second quarter.

我先談燃油，然後 Fredrik 會談組合結構。就燃油而言，我們在第二季單季內大約有 700 萬美元的挑戰。

You would anticipate given where the forward curves are that the end-quarter challenge will likely be a little bit more difficult sequentially. And then given the fact that we are cycling about a $20 million favorable in the third quarter of last year you are looking at a pretty big obstacle there. Fredrik?

依照遠期曲線的位置，你會預期季末的挑戰相較前一季可能會更嚴峻一些。此外，考量我們正在比較去年第三季約 2,000 萬美元的有利因素，你會看到一個相當大的障礙。Fredrik？

In terms of the mix, I would say that obviously were going to continue to have the overarching mix change between coal going away and we are growing intermodal. We have indicated that we do think things will moderate in terms of overall volume decline as we move throughout the year. However, third quarter is still going to be a challenging quarter and, frankly, so will fourth quarter, but we do expect things to improve from a volume perspective as we move throughout the second half of the year.

就組合結構而言，我會說很明顯我們仍會持續面臨整體組合的變化：煤炭逐步縮減，而我們在成長聯運。我們已指出，隨著年度推進，我們確實認為整體運量下滑幅度會趨於緩和。不過第三季仍將是具挑戰的一季，坦白說第四季也會如此；但從運量角度來看，隨著進入下半年，我們確實預期情況會改善。

I appreciate the time, guys. And I'm sure someone else will hit on the efficiencies but congrats on a good quarter.

感謝各位撥冗。我相信會有其他人問到效率議題，但也恭喜你們交出不錯的一季。

Ravi Shanker, Morgan Stanley.

Ravi Shanker，摩根士丹利。

I will hit on the efficiencies. So obviously a pretty impressive pace so far this year and not surprised that you raised that target of $350 million. This then raises the natural question as to what innings we are in with the productivity gains here. Just how deep is that well that you can draw from?

我來問效率。顯然今年迄今的推進速度相當令人印象深刻，因此你們把目標上調到 3.5 億美元也不令人意外。這自然引出一個問題：就這些生產力提升而言，我們現在處於第幾局？這口井到底有多深、還能挖出多少？

Good morning. This is Cindy. I will respond to that one.

早安。我是 Cindy。我來回答這題。

I will tell you when we think about productivity, we've generated some in our network performance as you've seen our service measurements improve. We think about it structurally and streamlining and process within initiatives. So those are the main categories that we look at.

我想說，當我們談生產力時，我們在網路營運表現上已產生一些成果——你也看到我們的服務衡量指標有所改善。我們也從結構面思考，透過各項倡議進行精簡與流程改善。這些是我們主要關注的類別。

When we look at what we've done so far, clearly we are lapping some of the big initiatives that we took late in 2015 and earlier this year but we see -- we have a very long initiative base. We have pulled some of those forward but I think when we look out to the future, I think we will continue to drive results both in the back half of the year, as Frank has talked about, maybe a little bit last in terms of quarterly numbers.

回頭看我們目前所做的，顯然我們正在比較 2015 年底與今年稍早採取的一些大型倡議；但我們看到——我們有非常長的倡議清單。我們已把其中一些提前推動，但我認為展望未來，我們仍會在下半年持續推動成果；如 Frank 所談，季度數字上可能會稍微少一些。

But it's going to be better than what we traditionally do on a quarterly basis. And as I look into 2017 I think we will be able to overcome inflation. And I think a big part of what's going to help us to do that is our CSX of Tomorrow initiatives around the Network of Tomorrow as well as automation and technology is going to allow us to continue to drive productivity.

但仍會優於我們傳統上每季的表現。而當我看向 2017 年，我認為我們將能夠克服通膨。我認為能幫助我們做到這點的一大部分，是我們「明日的 CSX」倡議中關於「明日的網路」的工作，以及自動化與科技，將使我們能持續推動生產力。

I also want to mention that the actions that we are taking are not reactions, they are actual actions that are driving our decision-making relative to our coal portfolio getting much smaller and the importance of providing a safe and reliable service product in the merchandise and intermodal portions of our business. And that is part of our core CSX of Tomorrow strategy and we are executing on that and will help us to be both service sensitive, more service sensitive Company as well as a more efficient Company.

我也想提到，我們正在採取的行動不是反應式的作為，而是真正的行動；這些行動正在推動我們的決策，使我們的煤炭組合大幅縮小，並凸顯在我們業務中的商品與聯運板塊提供安全且可靠的服務產品之重要性。而這也是我們「CSX of Tomorrow」核心策略的一部分；我們正在落實執行，這將幫助我們成為一家對服務更敏感、同時也更有效率的公司。

Got it. So just to clarify, the run rate that you expect to see for the second half of this year, is that a run rate to think of going into 2017?

了解。所以我想再確認一下，您預期今年下半年會看到的運行水準（run rate），是否可以視為進入 2017 年的運行水準？

I think what the numbers would imply in the second half would be about $60 million a quarter. It never works out perfectly, as you know, but that's a general run rate in the second half of the year.

我認為下半年的數字所暗示的大約是每季 6,000 萬美元。當然如你所知，不會完全精準，但這是今年下半年的大致運行水準。

As we get closer to the end of the year we'll be able to give you a little bit more guidance on 2017. But I think Cindy mentioned, and I will reiterate, our goal is always to offset inflation with productivity. And depending on how those numbers play out, as you get into forecasting next year's inflation numbers you should see us have confidence in our ability to continue to do that in 2017.

隨著我們更接近年底，我們將能就 2017 年提供更多一些指引。不過我想 Cindy 已經提到，我也再重申一次：我們的目標一向是以生產力抵銷通膨。視這些數字的實際走勢而定，當你開始預測明年的通膨數字時，你應該會看到我們對於在 2017 年持續做到這一點的能力充滿信心。

Great, thank you.

很好，謝謝。

Ken Hoexter, Merrill Lynch.

Merrill Lynch 的 Ken Hoexter。

Just wanted to follow up on Frank's comment on the increase in CapEx and accelerating locomotives purchasing. Just wondering why you are accelerating the CapEx. Did you get better pricing on equipment and does that change your thoughts on cash flow, buybacks and use of capital as we move forward?

我想跟進 Frank 關於資本支出（CapEx）增加以及加速採購機車的評論。我想了解你們為什麼要加速 CapEx？是否拿到更好的設備價格？這是否會改變你們對未來現金流、庫藏股回購以及資本運用的看法？

Honestly it was the avoidance of seller financing charges that we would have incurred if we had stuck with the original deal to pay off the engines next year. So it's just a timing over a couple of months. No impact on cash flow, it's kind of a one-time thing switch between 2017 and 2016.

老實說，這是為了避免如果我們維持原先交易、明年才付清機車款項所會產生的賣方融資費用。所以只是提前幾個月的時間差。對現金流沒有影響，算是一次性的調整，把 2017 年與 2016 年之間做了切換。

So it's not a commentary on what you thought on pace of volumes or anything else, just financing to accelerate in a declining volume environment?

所以這不是在評論你們對運量節奏或其他因素的看法，只是在運量下滑的環境下，基於融資考量而加速？

Well, we either pay the financing charges or avoid them by pulling it forward. And as Cindy is mentioning, every dollar is on the table and that seemed like a good way to save a little bit of money as we look forward into 2017.

是的，我們要嘛支付融資費用，要嘛把付款提前來避免它。正如 Cindy 提到的，每一塊錢都在檢視範圍內，而把它提前看起來是個在展望 2017 年時省下一點錢的好方法。

All right, great, thank you.

好，太好了，謝謝。

Brandon Oglenski, Barclays.

Barclays 的 Brandon Oglenski。

So I want to follow up from Ken's question on CapEx. So you talked about the ability in 2017 to get back towards a core investment around 16%, 17% of revenue. But I am assuming that excludes spending on things like PTC.

我想延續 Ken 關於 CapEx 的問題。你們提到 2017 年有能力回到約占營收 16%、17% 的核心投資水準。但我假設那不包含像 PTC 這類的支出。

So you might not be willing to tell us right now what you think the non-core items might be in 2017. But maybe if you could give us some context on what non-core investment has been for the past couple of years?

你們現在可能不願意告訴我們 2017 年非核心項目會是多少，但能否提供一些背景，過去幾年非核心投資大概是多少？

Sure. So the only thing that we exclude from core investment is Positive Train Control. If you look at what we are doing this year, our all-in number of $2.7 billion has the $300 million increase for the engines that I just mentioned. It has $300 million for Positive Train Control which get you down to the $2.1 billion of core capital that we had started the year talking about.

當然。我們唯一從核心投資中排除的是正向列車控制（Positive Train Control，PTC）。如果你看我們今年的作法，我們包含在內（all-in）的數字是 27 億美元，其中包含我剛提到的機車增加 3 億美元，也包含 3 億美元的 PTC；扣除後就回到我們年初所談的 21 億美元核心資本支出。

And as you might remember that was a decline of over $100 million in core capital from 2015. You will continue to see us focus hard on core capital and making sure that we are making the right decisions in terms of infrastructure equipment and return seeking investments. As you think about PTC going into 2017, that number should decline some from the levels that you see here, in 2016, it should step down a little bit and then again between 2017 and 2018 as we set our sights toward being compliant with the FRA's and Congress's mandate that we be hardware complete by the end of 2018.

而你可能記得，這相較 2015 年的核心資本支出下降了超過 1 億美元。你會持續看到我們把重點放在核心資本上，確保在基礎設施設備與追求報酬的投資方面做出正確決策。至於 2017 年的 PTC，我們預期該數字會較 2016 年你現在看到的水準有所下降，會先小幅下調；接著在 2017 到 2018 年之間再下降一些，因為我們把目標鎖定在符合 FRA 與國會的要求：在 2018 年底前完成硬體建置。

And then it should leg down even further between 2018 and 2019. And then hopefully all of that will go away as we get to full implementation in 2020.

然後在 2018 到 2019 年之間應該還會再進一步下降。希望等到 2020 年全面導入時，這些支出就會消失。

Then you won't see a scary a Positive Train Control CapEx line after that. It will just become embedded within the broader capital plan.

之後你就不會再看到那麼「嚇人」的 PTC 資本支出項目了；它會被納入更廣泛的資本計畫之中。

Okay. I appreciate that.

好的，感謝說明。

Brian Ossenbeck, JPMorgan Chase.

JPMorgan Chase 的 Brian Ossenbeck。

I was wondering if you could give us an update on the CCX projects, can we talk about CapEx, what type of CapEx are you expecting there? Is that something we could do a public-private partnership and how close are you to scoping out and finding a site for that investment?

我想請你們更新一下 CCX 專案的進度。我們既然在談 CapEx，你們預期那邊會需要什麼類型的 CapEx？那是否可能採取公私合夥（PPP）？另外你們在界定範圍、以及為該投資尋找場址方面進展到什麼程度？

We are very excited about the CCX opportunity. We're finding that we are getting great cooperation from the state and local officials. We are very encouraged that we will be able to work cooperatively with them.

我們對 CCX 的機會感到非常興奮。我們發現州與地方官員給了我們很好的合作支持。我們非常受鼓舞，認為能夠與他們以合作方式推進。

As you mentioned it is a public-private partnership with the state providing about half of the funds and us providing the other half of the funds. And we think it's going to be a tremendous economic development opportunity for the state of North Carolina.

如你所提，這是一個公私合夥案，由州政府提供約一半資金、我們提供另一半資金。我們認為這將為北卡羅來納州帶來非常可觀的經濟發展機會。

We are very excited about the progress we are making on it. The exact location hasn't been finely determined at this point but we are continuing to make good progress.

我們對目前取得的進展感到非常振奮。確切地點目前尚未最終確定，但我們仍在持續取得良好進展。

Okay. Can you just remind me of the timing and the size of the expense (multiple speakers)?

好的。你能否再提醒我一下時程與費用規模（多位講者）？

It's going to be roughly $150 million of ours which is part of the long-term capital plan that Frank evaluated. And the state is putting up close to a similar amount for the facility.

我們的部分大約是 1.5 億美元，這已納入 Frank 評估的長期資本計畫之中。而州政府也將為該設施投入接近相同金額。

Okay, thanks for your time.

好的，謝謝你撥冗。

Allison Landry, Credit Suisse.

Credit Suisse 的 Allison Landry。

I was wondering if you could talk a little bit about the mix during the quarter. In particular, it looks like maybe there was some positive mix within the coal segment. So just wanted to see if you could help us understand if that was on the domestic side or export, what drove that and if that's something we should expect to persist in the third quarter?

我想請你們談談本季的組合（mix）。特別是，看起來煤炭部門內部可能有一些正向的組合效應。所以想請你們協助我們理解：這是來自國內還是出口端？是什麼驅動因素？以及第三季是否可望持續？

Yes, so, Allison, on the coal RPU specifically, we did have some positive mix. Obviously, we also had the help of our fixed variable contracts and continued pricing on the domestic side. Offsetting that is, of course, fuel surcharge revenue coming down and then the actions that we've taken on the export coal market.

是的，Allison，就煤炭的每單位收入（RPU）而言，我們確實有一些正向的組合效應。當然，我們也受惠於固定/變動合約，以及國內端持續的定價。抵銷因素則包括燃油附加費收入下滑，以及我們在出口煤市場採取的行動。

I do think that it changes quarter by quarter but it is a sustainable level and there will be quarters when it will be up and there will be quarters when it will be down. The focus on our part is to make sure that we continue to do core pricing appropriately and then let fuel and mix fall wherever it's going to fall.

我確實認為這會隨季度而變，但它是可持續的水準；有些季度會上升，有些季度會下降。我們的重點是確保持續以適當方式做好核心定價，至於燃油與組合就讓它們依其走勢變動。

Okay. Were there any contracts on the domestic side that came up for renewal in the second quarter that maybe boosted that a little bit?

好的。第二季國內端是否有任何合約到期續約，因而稍微推升了表現？

Nothing specifically. We have about a quarter, 20% to 25% of our contract coming out here by the end of the year. But nothing specifically here in the second quarter that would have changed the RPU number.

沒有特別的。我們大約有四分之一、也就是 20% 到 25% 的合約會在今年底前到期。但第二季沒有任何特定事件會改變 RPU 的數字。

Okay, great. Thank you.

好的，很好。謝謝。

Chris Wetherbee, Citi.

Citi 的 Chris Wetherbee。

I wanted to follow up on the CapEx side and just talk a little bit about locomotive spend. So you pulled some forward into 2016. How should we think about the change in locomotive spend as we go into 2017 and 2018?

我想跟進 CapEx，並談談機車支出。你們把部分支出提前到 2016 年。那麼進入 2017 與 2018 年時，我們應該如何看待機車支出的變化？

Sure. So if you take just a year or two view of that and you look at where we are from a locomotive storage perspective, we've got about 350 engines in storage and then as you look towards the back half of the year as Cindy gets the deliveries of about 60, 65 of the remaining engines from the purchase commitment that we had started in 2014 I think you should expect in the volume environment that we'll continue to store engines through that period.

好的。如果你用一到兩年的視角來看，並觀察我們的機車封存（storage）狀況，我們大約有 350 台機車在封存中；再看今年下半年，當 Cindy 接收我們自 2014 年開始的採購承諾中剩餘約 60 到 65 台機車的交付時，在目前的運量環境下，我認為你應該預期我們在那段期間仍會持續封存機車。

As you look forward in 2017 and 2018, assuming volumes stay essentially where they are I doubt you would see us in the market for new locomotives. At the same time, we do believe that continuing to reinvest in our four axle, so our yard and switcher engines, is the long-term right thing to do. So you might see a little bit of capital going toward rebuilding the four axle engines.

展望 2017 與 2018，假設運量大致維持在目前水準，我不認為你會看到我們進入市場採購新的機車。同時，我們也相信持續再投資於我們的四軸機車（也就是我們的調車場與調車用機車）是長期而言正確的作法。因此你可能會看到有一小部分資本用於四軸機車的翻修重建。

But again probably no big purchases in that time period. Cindy, anything you want to add to that?

但同樣地，在那段期間大概不會有大型採購。Cindy，你有什麼要補充的嗎？

No, I would say as we look ahead and the engines that we have stored, the 350 that Frank mentions are readily able to be brought back to service if we need them. In addition to that, we have as we've taken locomotives out this year some have gone into a recommended retire status which would not be in that stored count.

沒有。我會說，展望未來，我們已封存的機車——如 Frank 提到的 350 台——如果需要，隨時都能恢復投入營運。此外，今年我們將部分機車退出時，有些被列為建議退役狀態，這些不會計入封存數量。

So when you look at GTM is down about 10%, our active fleet is also down about 10%. And going forward I would echo Frank's comments.

所以當你看 GTM 下降約 10% 時，我們的在役車隊也下降約 10%。而展望未來，我會呼應 Frank 的評論。

So is that the right way to think about it on a GTM basis? I guess it's a tough question because of mix but when you think about potential volume growth, how much latent capacity you have a locomotive side for the next year or two, is it roughly 10% when you think about it in GTM terms?

所以以 GTM 的基礎來看，這樣理解是對的嗎？我想這是個很難的問題，因為有組合因素；但當你思考潛在的運量成長、以及未來一到兩年在機車端你們有多少潛在閒置產能時，若以 GTM 來看，大約是 10% 嗎？

When I think about it, GTMs is how we think about our workload demands but we are obviously cycling a very different type of commodity mix with coal being reduced and lesser GTM intensive business growing hopefully. So we will look at GTMs in terms of workload but when I think about what's available to bring back, it is really in what's in our stored status, not in the total that we have taken out this year.

就我來看，GTM 是我們衡量工作量需求的方式，但很明顯我們正在經歷非常不同的商品組合循環：煤炭在減少，而 GTM 強度較低的業務希望能成長。因此我們會用 GTM 來看工作量；但當我思考有哪些可恢復的資源時，主要其實在於我們處於封存狀態（stored status）的那些，而不是今年我們總共撤出的那一整體數量。

We are going to recommend to retire some of the locomotives that we've taken out this year. And there's also leases that we have returned, too, I might add.

我們將建議把今年撤出的部分機車予以退役。另外我也要補充，我們也歸還了一些租賃的機車。

Okay, so probably a little less than that number, I guess, ultimately is what you are saying?

好的，所以你最終的意思是，可能會比那個數字少一點，對嗎？

Less than 10% is what's available to bring back.

可恢復的量低於 10%。

Okay, that's helpful. Thank you very much for the time.

好的，這很有幫助。非常感謝你撥冗。

Tom Wadewitz, UBS.

Tom Wadewitz，瑞銀（UBS）。

Wanted to ask a question, I think it is for Fredrik, it's on the domestic intermodal side. You guys have done a good job of realizing volume growth despite a difficult market, difficult backdrop in truck.

我想問一個問題，我認為是問 Fredrik，關於國內聯運（domestic intermodal）。在卡車市場環境艱難、整體背景不利的情況下，你們仍然很好地實現了運量成長。

I think you are up 5% in second-quarter domestic intermodal but then you are saying flat in third. Is that just the kind of impact from that one contract or is there some slowing that you are seeing in the market? Just wondering if you could talk on the domestic intermodal a little bit. Thanks.

我記得你們第二季國內聯運成長 5%，但你們又說第三季持平。這只是那一份合約的影響，還是你們看到市場有些放緩？想請你稍微談談國內聯運。謝謝。

Sure, Tom. No, it really is impact from the fact that last year in the third quarter we had a significant ramp up in our domestic intermodal business. And as we move in here to the third quarter we are going to start lapping that which is going to make the volume compares a lot more difficult than it's been the first part of the year.

當然，Tom。不，主要確實是因為去年第三季我們的國內聯運業務有一個顯著的爬坡（ramp up）。而我們進入今年第三季後，將開始與那段期間做同比比較，這會讓運量比較變得比今年前半段困難得多。

That's really the key driver. The market out there obviously continues to be challenged with a fair amount of excess capacity.

這才是真正的關鍵驅動因素。外部市場顯然仍然充滿挑戰，因為有相當程度的過剩產能。

From our perspective, though, the intermodal story is broader than that and we continue to have good success in converting traffic from the highway in partnership with the trucking industry. We also continue to get some pricing even in this tough environment which bodes well for the long term.

不過從我們的角度來看，聯運的故事不只如此；我們持續與卡車業者合作，成功把貨量從公路端轉換過來。即使在這樣艱難的環境下，我們也仍能取得一些定價，這對長期而言是個好兆頭。

Do you have any thought on inventories and whether high inventories are coming down somewhat or is that still an issue that you hear from shippers?

你對庫存有什麼看法？高庫存是否正在稍微下降，還是你仍從託運人那裡聽到這是個問題？

Inventory is still at the high level. Has been a sequential decline just a little bit but it's still high versus historical basis. So that's certainly impacting the international part of our intermodal business more perhaps than it does on the domestic side, which is also why you are seeing the steamship line continuing to struggle quite significantly and demand on that side is very weak at the moment.

庫存仍處於高位。雖然環比有小幅下降，但相較於歷史水準仍然偏高。因此這對我們聯運業務中的國際部分影響可能大於國內部分；這也是為什麼你會看到航運公司（steamship line）仍在相當程度地掙扎，而那一端的需求目前非常疲弱。

Right, okay, thank you.

了解，好的，謝謝。

Jeff Kauffman, Buckingham Research.

Jeff Kauffman，Buckingham Research。

Congratulations. A question for Frank.

恭喜。我要問 Frank 一個問題。

Frank, there's been a lot asked about the CapEx and I understand what you are doing to locomotive CapEx, but that is going to create a little bit more of a cash shortfall. Since it is just really borrowing from 2017, do we fund that shortfall with debt and continue repurchasing shares at these levels or do we focus on maintaining cash and maybe slow the repurchase until the cash flow gets a little bigger next year?

Frank，大家問了很多關於資本支出（CapEx）的問題，我也理解你們在機車 CapEx 上的作法，但那會造成現金缺口稍微擴大。既然這基本上只是從 2017 年借到現在，你們會用舉債來補足缺口，並在這些水準持續回購股票嗎？還是會以維持現金為優先，可能放慢回購，直到明年現金流變得更大？

In terms of the buybacks, you know we are in the midst of the two-year, $2 billion program that we announced in April of last year. You've seen us essentially ratably buy throughout the period about $1.2 billion that we've repurchased so far throughout that program, about $800 million or so left.

就回購而言，你知道我們正在執行兩年、20 億美元的計畫，這是我們去年 4 月宣布的。你也看到我們在整個期間基本上是按比例（ratably）地買回；到目前為止，在該計畫下我們已回購約 12 億美元，剩下大約 8 億美元左右。

I think absent a recession you should see us continue to do that ratably from now through the end of the first quarter of next year. And then reevaluate where we are from a cash and a ratings perspective as well as what the forward view of earnings might be at that time.

我認為在沒有衰退的情況下，你應該會看到我們從現在到明年第一季末，持續以相對均衡的節奏進行。之後再重新評估我們的現金狀況與信用評等（ratings）觀點，以及當時對未來獲利的展望。

Okay, thank you. And one detail follow-up. You never mentioned where are coal inventory days in your Northern and Southern service regions?

好的，謝謝。再追問一個細節：你剛才沒有提到你們南部與北部服務區域的煤炭庫存天數目前是多少？

Sure. So right now, where we are, we are in the South and we use an external source for this. We are at about 98 days on forward burn in the South and about 71 in the North.

當然。以目前來看，我們在南部（數據來源為外部機構）按未來燃燒量（forward burn）計算約 98 天，北部約 71 天。

And just to give you the average benchmark I think we've given in the past, in the South we expect the average to be about 70 and in the North 55. So whether you look at days burned or tons, we're up about 5% year over year using that same source.

再給你一個我們過去提供過的平均基準：南部我們預期平均約 70 天，北部 55 天。所以不論你看燃燒天數或噸數，使用同一來源的數據，我們年增約 5%。

So we're still at a pretty elevated level as we sit here today. Clearly the warm weather is helping but it's highly unlikely that by the end of the year we will get to normalized level is our best prediction at this point.

因此就今天而言，我們仍處在相當偏高的水準。顯然暖和的天氣有所幫助，但以我們目前最佳預測，到年底要回到正常化水準的可能性非常低。

Okay, thank you, everyone.

好的，謝謝各位。

Scott Group, Wolfe Research.

Scott Group，Wolfe Research。

So wanted to ask one more on the CapEx. If we are not buying locomotives for a few years and PTP spending is starting to come down, it sounds like given volumes that maybe growth CapEx in general should be coming down. I would think that there is an opportunity to cut the CapEx below that historical 16% to 17% of revenue and then you guys can really get a good free cash flow story going which I think would probably help the multiple here. How do you think about that and is that a realistic opportunity?

我想再問一個關於 CapEx 的問題。如果我們幾年內都不買機車，而 PTP 支出也開始下降，聽起來在目前運量下，整體成長型 CapEx 可能也應該下降。我會認為有機會把 CapEx 降到低於歷史上營收的 16% 到 17%，那你們就能真正建立一個很好的自由現金流（free cash flow）故事，我想這可能也會有助於估值倍數。你們怎麼看？這是現實可行的機會嗎？

Certainly we are in our planning process for 2017. It's really too early for us to comment on what we think next year's core CapEx is going to be. I think what you are hearing us say is that we are committed to returning to that about 16% to 17% of revenue from a CapEx perspective.

我們確實正在進行 2017 年的規劃流程，但現在評論我們認為明年核心 CapEx 會是多少還太早。我想你聽到我們說的是：從 CapEx 的角度，我們承諾回到大約營收的 16% 到 17%。

Within that in any given year, there's going to be differences between how much is in infrastructure, how much is in equipment, how much is in return-seeking investments. And as I think I've mentioned in the conferences back in June, we are also committed to making sure that the CSX of Tomorrow initiatives are part of that capital guidance. So it's not something that you are going to see us take that guidance up because of the CSX of Tomorrow initiative. We are going to make all the right trade-offs within that framework in order to be able to deliver on the CSX of Tomorrow, which is a very important part of our future, as Michael mentioned in his remarks.

在這個範圍內，每一年在基礎設施、設備、以及追求回報的投資（return-seeking investments）之間的配置都會有所不同。正如我在 6 月的會議上提到的，我們也承諾確保「CSX of Tomorrow」計畫納入這份資本指引之中。因此你不會看到我們因為「CSX of Tomorrow」而把指引往上調；我們會在這個框架內做出正確的取捨，以便交付「CSX of Tomorrow」，這是我們未來非常重要的一部分，正如 Michael 在他的談話中所提到的。

Yes, I guess I'm just thinking, though, it's historical that 16% to 17% of revenue historically has included locomotives. So if we are not buying as many locomotives, I would think there's an opportunity to get below that historical level. Is that realistic or are you saying not?

是的，不過我在想，歷史上營收的 16% 到 17% 其實包含了機車。若我們不買那麼多機車，我會認為有機會低於那個歷史水準。這現實嗎？還是你是在說不會？

I'm not commenting one way or another to be honest, Scott. I'm telling you that we will give you some guidance on 2017 as we get closer to the end of the year. And then as we begin to talk about the CSX of Tomorrow and the associated financial parameters of that, we will give you some guidance longer-term.

老實說，Scott，我不便在這裡表態是或不是。我能告訴你的是：我們會在接近年底時提供 2017 年的一些指引。然後當我們開始談「CSX of Tomorrow」以及其相關的財務參數時，我們也會提供更長期的指引。

Okay. And then if I can just ask one more just kind of detailed question. Just on coal, can you give us the mix of your coal by basin App coal, Illinois and PRB and where do you see the switching points?

好的。那我再問一個比較細節的問題：就煤炭而言，你們的煤炭按產區（basin）的組合能否提供一下，例如阿帕拉契亞（App）煤、伊利諾伊（Illinois）以及 PRB（粉河盆地），以及你們看到的切換點（switching points）在哪裡？

Sure. So here in the second quarter we saw an increase in Illinois Basin coal up to about 37% of our overall utility portfolio and really that's what's relevant, I think, just looking at the utility portfolio. So 37% thereabouts was Illinois, PRB about 20%.

當然。第二季我們看到伊利諾伊盆地（Illinois Basin）煤的占比上升到約占我們整體公用事業（utility）組合的 37%；我認為看公用事業組合才是重點。所以伊利諾伊約 37%，PRB 約 20%。

So we had about 57% of our coal was either Illinois Basin or Powder River Basin and the rest was Appalachia. And that is up a little bit from what we saw in the first quarter and, frankly, we expect Illinois Basin to continue to do well longer term as part of our utility mix.

因此我們約 57% 的煤炭來自伊利諾伊盆地或粉河盆地（Powder River Basin），其餘則是阿帕拉契亞（Appalachia）。這比第一季略有上升；坦白說，我們預期伊利諾伊盆地在長期內仍會在我們的公用事業組合中表現良好。

Thank you, Scott.

謝謝你，Scott。

Jason Seidl, Cowen.

Jason Seidl，Cowen。

I want to focus a little bit on the mineral line. Obviously the new fly ash contract is ramping up and that's distorting the yields a little bit here. How should we look at yields going forward for the remainder of the year as the contract ramps up?

我想把焦點放在礦產線（mineral line）上。顯然新的飛灰（fly ash）合約正在爬坡，這也在某種程度上扭曲了這裡的單位收益（yields）。隨著合約持續爬坡，對於今年剩餘期間的單位收益，我們應該如何看待？

Are you talking about yields overall or specifically in minerals?

你是在談整體的收益率，還是特別指礦物業務的收益率？

Specifically in minerals.

特別是礦物。

I think overall I don't think you're going to see a much different picture in terms of the yields. Clearly the fly ash is a big initiative on our side. We are also seeing strength in other parts of our minerals business.

我認為整體來看，在收益率方面你不會看到差異很大的圖景。很明顯，粉煤灰是我們這邊的一項重大倡議。我們也看到礦物業務其他部分的強勁表現。

But I don't think that that RPU is significantly different than any other part of our minerals business. So I think those drivers are similar within the other parts of that portfolio, as well.

但我不認為那個 RPU 與我們礦物業務的其他任何部分有顯著不同。因此我認為，在該投資組合的其他部分，這些驅動因素也相似。

Okay. Just a follow-up question on coal. You guys talked about being 98 days in the South, 71 days in the North.

好的。關於煤炭再追問一個問題。你們提到南部是 98 天、北部是 71 天。

How should we think about burning that through? If we get a normalized summer and a normal winter, at what point are we going to get back to those levels you talked about 70 in the South and 55 in the North?

我們應該如何看待把這些庫存消化掉？如果我們迎來一個正常的夏季和正常的冬季，大概什麼時候能回到你們提到的水準——南部 70 天、北部 55 天？

Well, most of the external sources we use and also discussions with utilities would indicate on average that we'll get there sometime in 2017, hopefully in the first part of 2017. Clearly, as I said earlier, this summer is helping.

嗯，我們使用的大多數外部來源以及與公用事業公司的討論都顯示，平均而言我們會在 2017 年的某個時候達到那個水準，希望是在 2017 年上半年。很明顯，如我先前所說，今年夏天正在提供幫助。

Clearly there are utilities that are below where they want to be and, frankly, we have seen additional calls there over the last month or so. That's a pretty low bar because the phone certainly wasn't ringing for several months. But it is helping, but you have -- some of our utilities that we serve have an awful lot of coal on the ground at this point and it's going to take more than just a really hot summer to get it back to where it needs on average.

很明顯，有些公用事業公司的庫存低於他們希望的水準，而且坦白說，過去一個月左右我們看到那邊有更多來電。這其實門檻很低，因為前幾個月電話確實都沒怎麼響。但這確實有幫助；不過——我們服務的一些公用事業公司目前地面上的煤炭庫存非常多，要把它平均拉回到需要的水準，光靠一個非常炎熱的夏天是不夠的。

And so as we think about coal for next year, I am assuming we should think at least the first half should be still continued to be pressured.

所以當我們思考明年的煤炭業務時，我假設至少上半年仍會持續承壓，對嗎？

I think there is a high likelihood of that. As I said we have a much better feel for that as we get through here this summer to see where we end up. Usually not just in coal but in all of our markets we go out and really work closely with our customers to get a sense of what the plan for 2017 should look like and at that point as we get into third quarter, definitely the fourth-quarter earnings release, we have a much better sense of where we are.

我認為這種可能性很高。如我所說，等我們度過今年夏天、看看最終落點在哪裡，我們會更有把握。通常不只是煤炭，而是我們所有市場，我們都會走出去並與客戶密切合作，以了解 2017 年的計畫應該長什麼樣子；到那個時點，當我們進入第三季，尤其是在第四季財報發布時，我們對自身所處位置會有更清楚的掌握。

But overall I think it's important to say two things. One, what's happening here right now in coal in terms of the hot weather and the fact that natural gas price have recovered a little bit is really more of an impact for 2017 than it is short term in 2016. And then I think it's also important, we've been probably been the most vocal on this, from our perspective right now, we are planning for a secular decline in our coal business.

但整體而言，我認為重要的是要說兩點。第一，目前煤炭這邊發生的事——炎熱天氣以及天然氣價格略有回升——對 2017 年的影響其實比對 2016 年短期的影響更大。第二，我也認為這很重要：我們可能一直是對此最直言不諱的；就我們目前的觀點，我們是在為煤炭業務的結構性下滑做規劃。

We would love to be wrong about that but in terms of how we approached our business and how we approach our planning we continue to see a secular decline. It doesn't mean that you can't have a year or so where it goes up but overall we think the trend is pretty clear where it's heading.

我們很希望自己判斷錯了，但就我們經營業務與做規劃的方式而言，我們仍然看到一個結構性下滑。這不代表你不可能有一兩年出現回升，但整體來看，我們認為趨勢很清楚，方向就是那樣。

Fredrik, that is fantastic color. Listen, Fredrik, Michael, team, I appreciate the time as always.

Fredrik，這些補充說明非常精彩。聽著，Fredrik、Michael、各位團隊成員，一如既往我很感謝你們撥冗。

Ben Hartford, Robert W. Baird.

Ben Hartford，Robert W. Baird。

Cindy, just some perspective on current service levels, kind of pick your measure, whether it is well time or velocity. Those measures have somewhat stagnated over the past few quarters, still above 2013's peak level.

Cindy，想請你就目前的服務水準提供一些觀點，衡量方式你可以自行選擇，不論是井場時間（well time）或速度（velocity）。這些指標在過去幾季有些停滯，但仍高於 2013 年的峰值水準。

Any thought or hope of being able to return those measures back to 2013 levels? Or should we, for the time being, ignore what you were able to do in 2013 and look for improvement but the likelihood of returning those levels are low? I'd be interested in any perspective there.

你是否認為或希望能把這些指標拉回到 2013 年的水準？還是說，就目前而言，我們應該先忽略你們在 2013 年做到的表現，期待改善但回到那些水準的可能性不高？我想聽聽你的看法。

Okay, well, Ben, we have improved our service levels both sequentially and year over year as you can see from the charts. We were actually a little ahead of where we had planned to be for this year. And obviously improved network performance does provide some efficiency gains for us.

好的，Ben，正如你從圖表中看到的，我們的服務水準無論按季或按年都已有改善。實際上，我們的進度還略微超前於今年的規劃。顯然，網路表現的改善也確實為我們帶來一些效率提升。

And we are committed to provide a service product that meets or exceeds our customers' expectations, helps Fredrik price for the value of the service that we provide. We have to balance that always, though, with some efficiency initiatives and I think we are doing that. I think we are pretty happy with where we are.

我們致力於提供一項服務產品，能符合或超越客戶的期望，並協助 Fredrik 依據我們所提供服務的價值來定價。不過我們也必須始終在這點與一些效率倡議之間取得平衡，而我認為我們正在做到。我們對目前的狀況相當滿意。

There's always opportunity to improve and we will do that. I think I have also highlighted before, and you've probably heard Frank talk about it before, where we've installed our train length initiative that it's more problematic for us in terms of velocity, let's say, is on the Southern part of our network which is mostly single-track.

永遠都有改善空間，我們也會持續改善。我之前也提過——你可能也聽 Frank 談過——我們推行列車加長（train length）倡議後，對我們而言在速度方面較具挑戰的地方，是我們網路的南部區段，因為那裡大多是單線。

So we think that's the right mix. We've made the right decision there. We are seeing overtime down, re-crews down and other measures that give us confidence that we are improving.

所以我們認為那是正確的組合，我們也做了正確的決策。我們看到加班下降、補班（re-crews）下降，以及其他指標的改善，這些都讓我們有信心我們正在進步。

But I think we are pleased with where we are. And we will work to improve.

但我認為我們對目前的狀況感到滿意，而且我們會持續努力改善。

Yes I may just speak from a sales and marketing perspective. I would say the effort here this year has been to really focus on the most service-sensitive part of our business, specifically intermodal business, drive that service up. And that's where we made the most gains and it is markedly different and is really helping our pricing efforts.

是的，我也可以從銷售與行銷的角度補充一下。我會說，今年的努力重點是把焦點放在我們業務中對服務最敏感的部分，特別是聯運（intermodal）業務，並把那裡的服務拉上來。我們在那裡取得了最大的進展，差異非常明顯，也確實在幫助我們的定價工作。

Also one of the key things for us is to reduce the span around a mean and that is also improving significantly. Because also as we look at a broader portfolio it is about being able to be there each and every day in a reliable way. Our local service has improved significantly, as well.

另外，對我們而言其中一個關鍵是縮小平均值周圍的波動幅度，而這也在顯著改善。因為當我們看更廣泛的產品組合時，重點在於能夠每天都以可靠的方式到位。我們的本地服務也有顯著改善。

And really as we look at the customer facing measurements, not so much the measurements that you are seeing in terms of what we disclosed externally, has improved significantly, as well. So from our perspective I think we are making the right trade-offs between productivity and service and as Cindy says on the productivity side we are never done and the same thing holds true on the service side. We always want to better for our customers, and I think we are seeing that cooperation from operations, so we feel very good about where we are.

而且就面向客戶的衡量指標而言——不是你們看到我們對外揭露的那些指標——也同樣有顯著改善。因此從我們的角度看，我們在生產力與服務之間做了正確的取捨；正如 Cindy 所說，在生產力方面我們永遠不會停止，服務方面也是一樣。我們總是希望為客戶做得更好，而我認為我們也看到營運端的配合，所以我們對目前的狀況感到非常良好。

Okay, that makes sense. From the metrics that we can see, that 2013 high watermark, are those targets that are credible? Do you feel like you can get back to those levels over time and potentially exceed them?

好的，這樣就說得通了。就我們看得到的那些指標而言，2013 年的高水位，那些目標是可信的嗎？你覺得隨著時間推進，你們能回到那些水準，甚至超越嗎？

I think everything is on the table. In terms of the pace and cadence of which we may get there, it is probably a longer-term type of aspiration. But, again, there's nothing that we are satisfied with.

我認為一切都有可能。至於我們可能達到那裡的速度與節奏，可能更像是一種長期的願景。不過，再次強調，我們沒有任何一項是會感到滿足的。

I'm not satisfied with the service measurements nor the efficiencies. And we will continue to work on both. But I think that's a longer-term initiative.

我對服務指標與效率都不滿意。我們會持續在兩方面努力。但我認為那是一項較長期的倡議。

Okay, thank you.

好的，謝謝。

Cherilyn Radbourne, TD Securities.

Cherilyn Radbourne，TD Securities。

Wanted to ask a question on productivity, which I think was a highlight again this quarter. And you always do a very good job of disclosing productivity versus the volume-related cost reductions. I just wonder if you could talk about the rigor with which you track that internally and make sure that you are holding people accountable.

我想問一個關於生產力的問題，我認為這一季生產力再次成為亮點。而且你們一向很擅長揭露生產力相對於與運量相關的成本降低。我只是想知道，你們內部以多嚴謹的方式追蹤這些項目，並確保對相關人員進行問責。

Absolutely, we have a lot of rigor within the financial organization which in some respects is the scorekeeper here. What we do in terms of tracking productivity, we make sure that we normalize for volume first.

當然，我們在財務組織內有非常嚴謹的機制，在某種程度上財務就是這裡的記分員。我們在追蹤生產力時，會先確保對運量進行標準化調整。

So to the extent that there are volume variable expenses then those don't count toward productivity. And what you've seen this year is that in the first half we are about $150 million of what we call rightsizing or volume variable cost reductions and then $230 million of structural cost efficiencies. There is a lot of accountability around productivity and, again, that is the way we take costs out long term.

因此，只要是運量變動性費用，那些就不會被計入生產力。你今年看到的是，上半年我們大約有 1.5 億美元屬於我們所稱的規模調整（rightsizing）或運量變動性成本降低，另外有 2.3 億美元屬於結構性成本效率。對生產力有很強的問責機制，而且再次強調，這就是我們長期降低成本的方式。

Let me give you just a simplistic example that may help illustrate it. So let's use coal just because coal volumes have come down. So if a coal train ran last year but doesn't run this year then the cost associated with locomotives and crudes and fuel and car costs would come out of volume variable expenses, and so you'd hear us talk about those in terms of rightsizing.

我給你一個很簡化的例子，可能有助於說明。就用煤炭來舉例，因為煤炭運量已經下降。假設去年有一班煤炭列車在跑，但今年不跑了，那麼與機車、車組（crews）、燃料以及車輛成本相關的費用就會從運量變動性費用中移除，所以你會聽到我們把那些稱為規模調整（rightsizing）。

If, for example, and we have instances of this where you have two coal trains that ran last year and this year through the train length initiative and network routing we've actually put those two trains together and run a 200 car train instead of two 100 car trains, the efficiencies associated with less locomotive intensity, crew intensity, fuel intensity, etc., would be allocated toward productivity.

再例如——而且我們確實有這樣的案例——去年有兩班煤炭列車在跑，今年透過列車加長倡議與網路路由調整，我們把兩班列車合併，改跑一班 200 節車的列車，而不是兩班各 100 節車的列車；那麼因機車投入強度、乘務投入強度、燃料投入強度等降低所帶來的效率，就會被歸類到生產力。

Great, that's helpful. Thank you, that's all from me.

很好，這很有幫助。謝謝，我這邊就這些。

David Vernon, Bernstein.

David Vernon，Bernstein。

Frank, this is kind of a great setup to what I wanted to ask you in terms of the size of the absolute productivity number. As we have gotten through the year, it does seem like that number is growing at the same time that our expectations for forward volume are getting worse.

Frank，這正好引出我想問的問題，關於絕對生產力數字的規模。隨著我們走過今年，看起來那個數字在成長，同時我們對未來運量的預期卻在變差。

Is it right to believe that you guys are finding more opportunities to drive that productivity because there's less traffic on the network and that that productivity pool is kind of expanding in relation to the volume decline? That's kind of the first question I wanted to ask you.

是否可以這樣理解：因為網路上的車流較少，你們找到更多推動生產力的機會，而相對於運量下滑，那個生產力池反而在擴大？這是我想問的第一個問題。

I think what you will see us do in an environment like this where we realize that the revenue portfolio is in transition and the volume, especially on the coal side is coming down, is we turn over every rock. And you've heard Cindy talk a lot about all the things that she is doing on the operating side, and not to the exclusion of the G&A side.

我認為在像這樣的環境下，當我們意識到營收組合正在轉型、而運量（特別是煤炭端）正在下滑時，我們會把每一塊石頭都翻過來找機會。你也聽到 Cindy 談了很多她在營運端所做的各項工作，而且不僅限於營運端，G&A 端也同樣如此。

The G&A side, every department is also looking for ways to challenge every cost dollar. So I think what you are seeing is really an across-the-board focus in our Company to be disciplined on cost.

在 G&A 端，每個部門也都在尋找方法來挑戰每一塊成本美元。所以我認為你看到的，確實是公司全面聚焦於成本紀律。

We've always been disciplined on cost, we've always tried to offset inflation with productivity but just given where we know the business is going we are really looking at these structural things in a way to reduce the overall cost intensity of the business.

我們一直以來都很有成本紀律，也一直嘗試用生產力來抵消通膨；但鑑於我們知道業務將走向何方，我們正以結構性的方式來檢視這些事項，以降低整體業務的成本強度。

And when volumes inflect positively obviously we will be able to grow with that both on the earnings and the margin side and to the extent that growth comes in the batch merchandise business or the intermodal business or the automotive business you should see us grow with healthy incremental margins. So I think what you are seeing is the Company focused on cost given the environment.

而當運量正向拐點出現時，顯然我們將能在獲利與利潤率兩方面隨之成長；而且只要成長來自散裝商品（merchandise）業務、聯運（intermodal）業務或汽車業務，你應該會看到我們以健康的增量利潤率來成長。所以我認為你看到的是，公司在此環境下聚焦成本。

I guess the second part of the question is as you are taking that in your example the two 100 car trains and making a 200 car train, I guess when volume does inflect how do you think the cost structure will react? Do you think that the variable cost might go up and you should probably just shouldn't care because the contribution is so high? Or do you think you can actually sustain this lower level of variable unit cost that you've been able to engineer given the extra space on the network?

我想問題的第二部分是：以你舉的例子，把兩列 100 節車厢的列車合併成一列 200 節車厢的列車；那麼當運量出現拐點回升時，你認為成本結構會如何反應？你覺得變動成本可能會上升，而你們可能不該太在意，因為貢獻度很高？還是你覺得在網路仍有額外空間的情況下，你們其實能維持這個較低的變動單位成本水準？

Sure. It depends in large part on how the volumes come back and where the volumes come back. We have engineered a lot of flexibility into the network through the train length and variable scheduling initiatives that you've heard us talk about.

當然。這在很大程度上取決於運量如何回來、以及回來在哪些業務。我們透過你們聽我們談過的列車加長與彈性排程（variable scheduling）等措施，已在網路中設計了很大的彈性。

Again, as I mentioned, if volumes come back in class traffic and part of the scheduled network you should see us be able to grow volumes without adding back variable costs. If the volumes come back in bulk traffic where you are adding a new train start for a new bulk train then you should see us bring that back. But again -- the resources back b- but again that would be at a nice margin so you would want us to do that.

再說一次，如我提到的，如果運量回來是在分類車流（class traffic）以及排程網路的一部分，你應該會看到我們能在不增加變動成本的情況下成長運量。若運量回來是在大宗（bulk）車流、需要為新的大宗列車新增一次開行（train start），那你就會看到我們把資源加回來。但再說一次——把資源加回來——那也會是在不錯的利潤率下，所以你會希望我們這麼做。

That's kind of what it seems like. Well, those are my two. Thanks very much for the time.

這大概就是看起來的樣子。好，以上是我的兩個問題。非常感謝撥冗。

John Larkin, Stifel.

John Larkin，Stifel。

Just wanted to see how much granularity on the accelerated productivity targets you are willing to share with us. There are a lot of initiatives obviously underway, coal network rationalization, longer trains, closing down some excess facilities, eliminating duplicate overhead, all of those are very admirable initiatives.

我想了解你們願意分享多少關於加速生產力目標的細節。顯然有很多措施正在推進，包括煤炭網路合理化、更長的列車、關閉一些多餘設施、消除重複的間接費用（overhead）等等，這些都是非常值得肯定的措施。

Are there any two or three of those that have really been the primary reason why you've almost achieved your entire former productivity target in the first six months that had originally been established for the entire year?

在這些措施中，是否有兩三項是主要原因，讓你們在前六個月幾乎就達成了原本設定為全年目標的生產力目標？

John, I think what we have been able to do is put a series of initiatives together, mostly structural with the closure of facilities late last year in the coal network and moving forward into this year where we also closed Russell Yard and also consolidated our Huntington division headquarters. But it's not just in the coal space. We've also announced publicly and you probably read it where we've consolidated facilities in Central Florida with Winston Yard in Tampa, a consolidation actually in Tampa and also streamlining some of our mechanical facilities and shops that are aligned more with our outer triangle in the core network that we have.

John，我認為我們能做到的是把一系列措施組合起來，多數是結構性的：包括去年底在煤炭網路關閉設施，以及今年持續推進，我們也關閉了 Russell Yard，並整併了 Huntington 分區總部。但不僅是在煤炭領域。我們也已公開宣布——你可能也讀到了——我們在佛羅里達中部整併了設施，將 Tampa 的 Winston Yard 進行整併，實際上是在 Tampa 的整併；同時也精簡了一些機務設施與工廠，這些都更貼近我們核心網路的外三角（outer triangle）布局。

Our job is to really become less resource intensive. So between train length and the density of the train as well as the density of the route that we route the train has also allowed us significant savings across the board. So I think there's really no one thing that we have accelerated that would really answer your question.

我們的工作是讓資源投入強度降低。因此，透過列車長度、列車密度，以及我們安排列車行經路線的密度，也讓我們在各方面取得了可觀的節省。所以我認為，並沒有某一件單一事項是我們加速推進到足以直接回答你問題的。

But we are able -- as we are able to put initiatives in place we are doing so and continually looking for more. We have great momentum here. Everyone is overdelivering and I think technology is a big help for us and also some of our -- working with our labor organization is also a big help for us.

但我們能做的是——只要能把措施落地，我們就會去做，並持續尋找更多機會。我們目前動能很強，每個人都超額交付；我認為科技對我們幫助很大，另外，與我們的勞工組織合作也對我們很有幫助。

Thank you for that very detailed answer. And then maybe has a follow-on, I understand there's a fairly big initiative internally given that intermodal is going to be a bigger part of the puzzle going forward to make intermodal more consistently profitable going forward. And it occurs to me that some of the initiatives to achieve that goal come from the marketing side.

謝謝你非常詳細的回答。接著追問一下：我理解內部有一個相當大的計畫，因為聯運未來會成為拼圖中更大的一部分，要讓聯運在未來更穩定地獲利。我想到，為了達成這個目標的一些措施可能來自行銷端。

And I was wondering if Fredrik could talk about some of the initiatives that perhaps sales and marketing has underway within intermodal to normalize the volume so that you are running full trains every day of the week every week of the year. That's an obviously very difficult mountain to climb, but can you talk a little bit about what you are doing there perhaps in working with third parties to fill all the trains up every day to really leverage that productivity?

我想請 Fredrik 談談，銷售與行銷在聯運方面有哪些正在推進的措施，或許能讓運量更常態化，讓你們一年 52 週、每週 7 天都能每天跑滿載列車。這顯然是非常困難的挑戰，但你能否談談你們在這方面做了什麼，例如與第三方合作，每天把所有列車都填滿，以真正槓桿化那個生產力？

Yes, there's a variety of things there that we are working on, that's absolutely right, John. And some of them are I think at this point ready for public consumption, some of them are not. But overall you are absolutely right.

是的，這方面我們正在做各式各樣的事情，你說得完全正確，John。其中有些我認為目前已經可以對外說明，有些則還不適合公開。但整體而言，你的方向完全正確。

In the environment where the RPU is so much lower, one of the key things that you can do to drive up margins is to make sure that you have a much more leveled workload and the team is certainly working on that and thinking through how we can do that longer term. That is a pretty significant structural change.

在 RPU 這麼低的環境下，提高利潤率的一個關鍵作法，是確保工作量更平準化；團隊確實正在做這件事，並思考我們如何在更長期做到。這會是一個相當重大的結構性改變。

In the meantime what we are trying to do is work on terminal productivity. We have a variety of initiatives in place there that has yielded a lot of results here. We continue to work on train length in an intermodal space to make sure just as we do elsewhere in our business to allow for the levers that occurs there.

同時，我們正在努力提升場站（terminal）生產力。我們在那裡已經有多項措施到位，並帶來了很多成果。我們也持續在聯運領域推動列車加長，確保就像我們在其他業務所做的一樣，能夠運用那裡的槓桿。

Of course, double stack clearance is as important and you know where we are with the Virginia Avenue Tunnel. By the end of this year we should be able to be double stack clear there, as well.

當然，雙層堆疊（double stack）淨空同樣重要，而你也知道我們在 Virginia Avenue Tunnel 的進度。到今年年底，我們也應該能在那裡達成雙層堆疊淨空。

And then the hub and spoke strategy that we've lined out for all of you for a long time has allowed for a significant amount of efficiency being able to penetrate some of these smaller markets with a lot more density than we otherwise could. And of course, overall speed up the network itself which I alluded to before which has been a priority as we think about the service improvements here in 2016 because the turn time on the equipment is critical.

另外，我們長期向各位說明的樞紐—輻射（hub and spoke）策略，讓我們能以比原本更高的密度切入一些較小市場，從而帶來顯著效率；當然，也能整體提升網路速度——我之前也提到過——這一直是我們在思考 2016 年服務改善時的優先事項，因為設備周轉時間（turn time）至關重要。

And then to your point, and this is a little bit more longer term, how do you structurally ensure that the day of the week balancing is a little bit better than what it is today. But that is I think a little bit longer-term initiative from our perspective.

再來如你所說，這會更偏長期：我們如何在結構上確保一週各天的平衡（day of the week balancing）能比現在更好。但從我們的角度看，這應該是較長期的措施。

Got it, thanks very much.

了解，非常感謝。

Bascome Majors, Susquehanna.

Bascome Majors，Susquehanna。

We talk a lot about rising competition and its impact on intermodal but I wanted to focus on how it's hit your carload merchandise business. Do you have a sense of how much share loss to truck has been a drag on overall volumes and I guess, more importantly, when you begin to cycle the worst of that drag on let's call it a year-over-year basis?

我們談了很多競爭加劇及其對聯運的影響，但我想聚焦在它如何衝擊你們的零擔（carload）一般貨物（merchandise）業務。你們是否能判斷，因卡車分流造成的市占流失，對整體運量拖累有多大？以及更重要的是，當你們以年對年（year-over-year）的角度來看，何時會開始跨過（cycle）那段最嚴重的拖累？

One of the key things that we are focused on right now within our sales and marketing team is to sell through this cycle of excess capacity. And there is excess capacity in the truck market and that is probably impacting our volume to some degree.

我們目前在銷售與行銷團隊內聚焦的一個關鍵事項，是在這個產能過剩的循環中把貨賣出去（sell through）。卡車市場確實存在過剩產能，這可能在某種程度上影響了我們的運量。

But one of the key things for us is to continue to be able to reinvest in our business and not necessarily chase that down too much when we see these temporary changes because we do have to be able to be there for our customers day in and day out. And that's one of the things we sell with our customers that we've got to work through the downturn that we are seeing right now and we want to be able to be there for you not just today but also tomorrow when capacity is tighter.

但對我們而言，一個關鍵是要持續能夠再投資於我們的業務，而不是在看到這些短期變化時就過度追逐，因為我們必須能夠日復一日地為客戶提供服務。這也是我們向客戶傳達的一點：我們必須一起度過目前看到的下行期，而我們希望能夠不只在今天，也在明天當產能更吃緊時，依然能為你們提供服務。

So we are seeing in certain other markets beyond intermodal where there has been probably some share loss to truck. We look at that each and every deal has the marketplace and we always try to estimate what the second best alternative is and try to match that.

因此，我們在某些其他市場（不僅是聯運）看到，可能有一些市占流失到卡車。我們會逐筆檢視每一筆交易在市場上的情況，並且總是嘗試估算「次佳替代方案」是什麼，然後盡量去匹配它。

And in certain places where that is below what we think is long-term reinvestable for us, and at that point we probably don't participate because we don't want to do anything artificially. The pricing lever is critical. With the service improvements that we've gotten here we've been able to sustain and allow customers to see the long-term value that access to our network provides, but in certain places we have seen some traffic go way back to truck.

而在某些地方，如果那個水準低於我們認為對我們而言長期可再投資的回報，那麼我們大概就不會參與，因為我們不想做任何人為扭曲的事情。價格這個槓桿至關重要。隨著我們在這裡取得的服務改善，我們得以維持並讓客戶看到接入我們網路所帶來的長期價值，但在某些地方，我們確實看到有些貨量又大幅回流到卡車。

Understood. And I just had a quick housekeeping one on one of your expense guidance items.

了解。我還有一個很快的例行問題，關於你們費用指引中的其中一項。

On MS&O, it implies what you guided that it could be up as much as 10% sequentially from the second quarter in 3Q. Looking back it's been eight or nine years since we've seen a magnitude of that rise from Q2 to 3Q. Can you just give us a little color on what's driving that expectation, that big increase?

就 MS&O 而言，你們的指引暗示第三季相較第二季可能季增高達 10%。回頭看，已經有八、九年沒見過從第二季到第三季出現這麼大幅度的上升。你能否稍微說明一下，是什麼在驅動這個預期、這麼大的增幅？

Not commenting on the numbers that you threw out there. As you know MS&O is awfully difficult to predict in any given year in any given quarter. I think what we said was that it would be down moderately versus the prior year which does have some implication sequentially.

我不評論你剛才拋出的那些數字。如你所知，MS&O 在任何一年、任何一季都非常難以預測。我想我們說的是，相較去年會溫和下降，而這確實在季比上會有一些含意。

I think what you are going to see is we had the timing item on the $10 billion casualty reserve, so that's generally what we do in the second quarter and the fourth quarter of each year. We re-look at the probability and severity of casualty. And we had a favorable one-time item, you shouldn't think about that on a sequential basis in the third quarter.

我想你會看到的是，我們有一個關於 100 億美元意外事故準備金的時間點因素，所以一般我們是在每年的第二季和第四季做這件事。我們會重新檢視意外事故的發生機率與嚴重程度。而我們有一個一次性的有利項目，你不應該在第三季用季比的角度去看它。

And then in any given quarter, again, you have timing items and small one-time items that are going to impact the sequential comparisons. So I think you are directionally accurate, although again not commenting on your numbers specifically.

另外在任何一季，如我再強調一次，你都會有時間點因素以及一些小的一次性項目，會影響季比比較。所以我認為你在方向上是正確的，不過同樣地，我不會針對你的數字做具體評論。

Thank you for the time this morning.

謝謝你今天早上的時間。

Justin Long, Stephens.

Justin Long，Stephens。

So I wanted to start by asking about the point-to-point pricing initiative in coal. Could you provide an update on how far along you are in that process and do you think this will be a tailwind or a headwind to the core price numbers you are putting out today?

我想先從煤炭的點對點定價倡議問起。你能否更新一下你們在這個流程上推進到什麼程度？你認為這會對你們今天公布的核心價格數據形成順風還是逆風？

So we have implemented the point-to-point pricing across our coal network and overall I would say the process has gone very well. The reason for doing that is to make sure we better match the true cost of service, some of the locations that are further away from so-called our core routes to reflect the maintenance costs and operating costs that is associated with moving that.

我們已在煤炭網路全面導入點對點定價，整體而言我會說推行得非常順利。這麼做的原因，是為了確保我們能更好地匹配真實的服務成本；對於一些距離所謂核心路線較遠的地點，要反映出運送相關的維修成本與營運成本。

I don't think that that will be material in any way shape or form to our same-store sales measure. And as I said it really is more about ensuring that as we try to rationalize the infrastructure in the coal fields that we from a sales and marketing perspective help operations to do that by truly reflecting what it costs to move some coal from certain other mines that are further away from some of our core routes.

我不認為這會以任何形式對我們的同店銷售衡量造成重大影響。如我所說，這更多是為了確保當我們嘗試在煤田地區合理化基礎設施時，從銷售與行銷的角度能協助營運端，透過真實反映從某些距離核心路線較遠的礦區運煤的成本來達成。

That's really all it's about. It's not so much about the same-store sales changing because of it, even though I think overall I would say probably it's slightly helpful.

重點就是這個。它並不是因為這件事而讓同店銷售發生變化，雖然我認為整體來說，可能是略有幫助。

So you've put it in place on the tariffs. It will take some time to go through all the contracts (multiple speakers)

所以你們已經把它放到運價表（tariffs）裡了。要把所有合約都走完還需要一些時間（多位發言者）。

That is correct, as well. We've put it in place in terms of the tariffs. We have adjusted one or two contracts, but it will probably take one or two or three years, frankly, to get it completely implemented across our whole book of business.

沒錯。我們已經在運價表層面上到位了。我們也調整了一、兩份合約，但坦白說，要在我們整個業務合約組合中完全落實，可能需要一到兩年或三年。

That's helpful and maybe as a quick follow-up, so the 4% increase in core price excluding coal is a pretty strong number in this environment. It's also above what we've seen from some of the other rails here to date. Do you think this level of price increases is sustainable as we get into the back half of the year or is there risk we see some moderation given truckload capacity is pretty loose right now?

這很有幫助。再快速追問一下：在目前這種環境下，剔除煤炭後核心價格上漲 4% 是個相當強的數字，也高於我們目前看到其他鐵路公司的一些表現。你認為當我們進入下半年，這樣的漲價幅度是否可持續？還是說，考量目前卡車運能相當寬鬆，存在一些走弱、趨於溫和的風險？

So first of all great testament to both what our sales and marketing team have done in this tough environment to your point about the strong results and also clearly a critical part of this has been the service improvements that we have seen. We don't really forecast what pricing will do over time.

首先，這充分證明了我們銷售與行銷團隊在這個艱難環境下所做的工作——正如你所說，成果很強；同時，很關鍵的一部分也來自我們所看到的服務改善。我們不太會去預測定價隨時間的走勢。

We will obviously disclose it each and every quarter in terms of our quarterly flash. But I think you know from our statements before, on one hand we know value creation for CSX pricing is a critical component of that but I've also alluded to the fact that I think short term, meaning for the next 12 months or so, we see a period Of excess capacity out there that certainly is impacting things. But overall you'll have a chance to see it where it comes each and every quarter.

我們當然會在每一季的季度快報中揭露。但我想你也知道，從我們過去的說法來看，一方面我們知道，對 CSX 而言，透過定價創造價值是其中一個關鍵組成；但我也提過，短期來看——也就是未來 12 個月左右——我們看到市場上存在一段過剩運能的期間，這確實正在影響各種情況。不過整體而言，你每一季都會有機會看到它的表現。

Okay. I will leave it at that. Thanks so much for the time.

好的。我就先到這裡。非常感謝你撥冗。

Donald Broughton, Avondale Partners.

Donald Broughton，Avondale Partners。

Help me think about this strategically or help me understand how you think. I understand how the strength of the US dollar is affecting, negatively affecting ag exports and exports of other commodities. I understand why crude being under 70 is affecting negatively chemical volume and everything related to fracking and nat gas obviously under 4 is going to continue to be a headwind for coal.

請幫我從策略面思考一下，或幫我理解你們的思路。我理解美元走強如何對農產品出口以及其他大宗商品出口造成負面影響。我也理解原油低於 70 美元為何會對化學品運量以及所有與壓裂相關的業務造成負面影響，而天然氣顯然低於 4 美元也會持續對煤炭形成逆風。

So what's your crystal ball? Not that your crystal ball is any better than anyone else's but you have to have a plan, what do you plan?

那你們的水晶球是什麼？不是說你們的水晶球比別人更準，但你們必須有個計畫——你們打算怎麼規劃？

Do you expect the dollar to stay strong, crude to stay above under 70 and nat gas to stay under 4 for the foreseeable future? Is that your expectation or are you planning for the dollar to get weaker, for crude to go back up and nat gas to go back up?

你們是否預期美元會持續強勢、原油在可預見的未來仍低於 70、天然氣仍低於 4？這是你們的預期嗎？還是你們在規劃美元轉弱、原油回升、天然氣回升？

That's where the flexibility I think in our resource planning is critical because to your point earlier there's a lot of crystal balls out there but I'm not sure which crystal ball is better than the other. What we do, as I said earlier, we do go out to our customers in the fall to try to get a sense of what they are saying in the different markets that we serve and then from there we take their best input and triangulate with other things to put together our perspective on 2017. And it's a very volatile marketplace right now where it's very hard to predict.

我認為我們資源規劃的彈性在這裡就非常關鍵，因為如你先前所說，市場上有很多水晶球，但我不確定哪一個比哪一個更好。我們的做法是，如我之前提到的，我們會在秋季走訪客戶，試著了解他們在我們所服務的不同市場中怎麼看，然後再把他們最好的回饋與其他資訊交叉驗證，形成我們對 2017 年的看法。而現在市場非常波動，確實很難預測。

We have laid out that overall from a coal perspective we do think there's a secular decline that we are heading towards. And certainly we've seen the vast majority of that already. The US dollar, it is impossible for me to sit here and predict what the US dollar.

我們已經說過，從煤炭的角度來看，我們確實認為正走向一個結構性的下滑。而且我們已經看到其中絕大部分的下滑發生了。至於美元，我不可能坐在這裡去預測美元會怎麼走。

It's probably much better to look at a forward curve than me speculating on that. But the key thing for us is that we continue to have flexibility in our resource planning and right now the best predictor of tomorrow is today. The dollar is strong and the low commodity prices are there. So that's how we approach it.

與其讓我臆測，可能看遠期曲線會好得多。但對我們而言，關鍵是我們在資源規劃上要持續保持彈性；而且現在「明天最好的預測指標就是今天」。美元很強、商品價格很低。所以我們就是用這樣的方式來應對。

Donald, what does your crystal ball say?

Donald，你的水晶球怎麼說？

My crystal ball says is that crude is going to stay under 70 and nat gas is going to stay under 4 for the foreseeable future and that there's nothing to indicate that the dollar is going to get weaker anytime soon. But, again, whose crystal ball is better than the other? I just wondered what you are planning against.

我的水晶球是：原油在可預見的未來會維持在 70 以下，天然氣會維持在 4 以下，而且沒有任何跡象顯示美元短期內會走弱。但話說回來，誰的水晶球會比誰更好？我只是想知道你們是以什麼情境在做規劃。

What is your best guess? Because obviously I understand you're triangulating your expectations to your customers but you have to have your own internal gauge as to where you are going, as well.

你們最好的猜測是什麼？因為我當然理解你們會把客戶的預期交叉驗證，但你們內部也必須有自己的衡量標準，來判斷你們要往哪裡走。

I think that goes back to the point of flexibility. It is so hard to plan these days and I think Cindy and team has done a fabulous job of really variablizing our cost structure.

我想這又回到「彈性」這個重點。現在要做規劃真的很難，我認為 Cindy 和團隊在讓我們的成本結構更具可變性方面做得非常出色。

We talked about that for a long time. And then we do whatever we can to forecast, even on a monthly basis, and try to flow that around the network so we can make very timely changes to our network based on the best information we have. But it's hard to see much beyond a month to three months at this point.

我們談這件事談了很久。然後我們也會盡一切所能去做預測，甚至以月為單位，並嘗試在網路中調度，讓我們能根據手上最好的資訊，對網路做出非常即時的調整。但在目前這個時間點，要看超過一到三個月以後的情況很難。

Very good, very fair. Thank you, gentlemen.

很好，很公允。謝謝兩位先生。

John Barnes, RBC Capital.

John Barnes，RBC Capital。

Two things. One, you indicated that you saw more spot-load activity on coal volumes in the quarter.

兩件事。第一，你們提到本季在煤炭運量上看到更多即期（spot）裝載活動。

Fredrik, I think you alluded to a few more phone calls. Do you have a sense for how much volume moved in the quarter, was it on a spot basis versus on a normal contractual basis?

Fredrik，我想你也提到多接到幾通電話。你們是否掌握本季有多少運量是以即期方式運送、相對於一般正常的合約方式？

On the export side? Or overall?

是在出口端嗎？還是整體？

Overall.

整體。

Overall? As you well know, on the export side, pretty much everything is spot these days. So also that's a great example in a previous question around things change very fast in terms of how much we move.

整體？如你所知，在出口端，這些天幾乎所有交易都是即期（spot）。所以這也是前面一個問題的很好例子，說明我們的變動幅度會隨情況快速改變。

And we did see a pickup on the export side in the second quarter beyond what we had originally anticipated, which is why we increase the guidance on the export side to about 20 million tons for the year. On the domestic side, really the calls that we have received has really come in here over the last I would say three to four weeks. And so we really haven't had a chance to move a lot of that yet.

我們確實看到第二季出口端的回升幅度超出原先預期，這也是為什麼我們把出口端的全年指引上調至約2,000萬噸。至於國內端，我們接到的詢問主要是在我想說過去三到四週才大量進來，因此我們其實還沒有機會把其中很多量移動出去。

But we do expect a little bit of a sequential uptick on the domestic coal which it is embedded in the guidance as we expect export coal to be weaker in the second half. We expect that domestic coal to be slightly stronger within that 22 million to 23 million tons for the quarter.

但我們確實預期國內煤會出現一些季比的溫和上升，這已反映在指引中，因為我們預期下半年出口煤會較疲弱。我們預期在該季度2,200萬到2,300萬噸的區間內，國內煤會略為更強。

Okay, all right. And then my second question, and this is a little bit longer term more strategic in nature. I recognize both of these things have only occurred since July 1, but you have got be expanded Panama Canal is now open, the bookings are pretty solid thus far and then you had the SOLAS rules go into effect on July 1, as well.

好的，了解。那我的第二個問題，這比較偏長期、策略性。我知道這兩件事都只是從7月1日才發生，但你們現在有擴建後的巴拿馬運河已開通，目前訂艙看起來相當穩健；另外，SOLAS規則也在7月1日生效。

Have you seen any impact of either and what do you think are the longer-term impacts? What do you think it means? Is there a stairstep in volume as a result of one or both or is this just moving, this is just changing where the freight, how the freight gets to you but no real stairstep?

你們有看到其中任何一項的影響嗎？你認為長期影響會是什麼？這代表量會因其中一項或兩項而出現階梯式（stairstep）的增加嗎？還是只是把貨運移動——只是改變貨物如何到你們這裡，但不會真正出現階梯式變化？

On the SOLAS first of all we really haven't seen any impact at all. And we have spoken to our international customers and it seems like the capabilities have been there either by the court or some other freight orders or somebody else providing that information that is required.

先談SOLAS，首先我們其實完全沒有看到任何影響。我們也和國際客戶談過，看起來相關能力早就具備了，可能是由碼頭或其他貨運代理，或其他人提供所需的資訊。

So we have not heard anything and we don't anticipate any impact on our international volumes because of SOLAS. In terms of Panama Canal, obviously, it is very recent. It is a little too early to tell.

所以我們沒有聽到任何問題，也不預期SOLAS會對我們的國際運量造成影響。至於巴拿馬運河，顯然這非常近期，現在判斷還太早。

We have said this for a while that there are so many different drivers that comes into play here that it's very difficult to predict exactly what's going to happen. The good news is that we have a flexible network. We will be able to handle additional volume coming into the East Coast if that happens, and we are working very closely both with international customers and with a porch to make sure we have the capability that we need if it is a bigger shift than what we are currently anticipating.

我們講了一段時間：這裡牽涉太多不同的驅動因素，因此很難精準預測會發生什麼。好消息是我們的網路很有彈性；如果真的發生，我們能夠處理更多進入東岸的運量。我們也正與國際客戶以及港口非常密切合作，確保若轉移幅度比我們目前預期更大，我們具備所需的能力。

Very good. Are the ports, how far behind are the ports in being prepared for this?

很好。港口方面——港口在準備這件事上落後多少？

I don't think that is my place to comment, John. I think overall we work very well with the ports.

John，我想這不是我適合評論的範圍。我認為整體而言，我們和港口合作得非常好。

Certain of the ports have better infrastructure than others, of course. But overall it's a great relationship and I think the East Coast ports are certainly seeing this as an opportunity and have spent a fair amount of capital over the last decade to prepare for this.

當然，有些港口的基礎設施比其他港口更好。但整體來說關係非常好，而且我認為東岸港口確實把這視為一個機會，並在過去十年投入相當多資本來為此做準備。

All right, thanks for the time. I appreciate it.

好的，謝謝你撥時間。我很感激。

Keith Schoonmaker, Morningstar.

Morningstar 的 Keith Schoonmaker。

This is probably a question for Fredrik related to your last answer. Could you comment on the possibility that significant potential Panama Canal diversions from the historical land bridge road route could be simply truckable when they arrive by ship?

這大概是問Fredrik、跟你剛才的回答相關的問題。你能否評論一下：若巴拿馬運河帶來顯著、可能從歷史上的陸橋（land bridge）路線改道的貨量，當它們以船運抵達時，是否可能就直接改由卡車運送？

Yes, so our view of this has been is that as you -- if you do see a major shift over to the East Coast ports what we might lose some traffic that goes into the coastal regions that would be trucked to those markets. However we also see then the opportunity to pick up some traffic into the Ohio Valley, into more of the Southeast that is further away from the ports including potentially also going all the way back up to Chicago.

是的，我們的看法是：如果你——如果確實看到大量轉向東岸港口，我們可能會流失一些進入沿海地區、並由卡車配送到那些市場的貨量。不過我們也看到機會：可以在俄亥俄河谷、以及更偏東南部、距離港口更遠的地區承接一些貨量，甚至可能一路回到芝加哥。

We have seen a fair amount of shift already as the Suez Canal has taken up a bigger shift. We have seen as production in Asia has moved more to the Southeast that we see additional volume coming in through the ports. So we have the capability and there could be a little bit of a mix change, but overall we feel that we are very well-positioned to capture whatever happens.

我們已經看到相當程度的轉移，因為蘇伊士運河的占比提高、帶來更大的轉向。我們也看到，隨著亞洲的生產更多移往東南亞，經由港口進來的額外運量增加。因此我們具備能力，組合可能會有些變化，但整體而言我們認為自己處於非常有利的位置，可以掌握不論發生什麼情況。

Okay, thanks. Maybe just one more on truck competition. In the commentary I think that was issued last night, if I am remembering correctly, there was a remark about forest products experiencing some competition from trucking and yet you managed to grow domestic intermodal an impressive 5%.

好的，謝謝。再問一個關於卡車競爭的問題。在我記得昨晚發布的評論中，有提到林產品面臨一些來自卡車的競爭，但你們仍讓國內聯運（domestic intermodal）成長了令人印象深刻的5%。

It's sort of a contrast there, losing in one area. Is this just pretty route specific with the forestry?

這形成一種對比：在一個領域流失。這只是林業方面非常特定路線的情況嗎？

And the reason why the intermodal domestic has been as strong as it's been has been the fact that we boarded a significant amount of new traffic from one specific customer last fall and we are starting to lap here as we get to the third quarter. Hence the guidance for not the same sort of growth and probably close to flat on the domestic side as we get to the third quarter.

而國內聯運之所以能有這麼強的表現，是因為我們在去年秋天從某一個特定客戶承接了大量新貨量；隨著進入第三季，我們開始進入比較基期（lap）。因此指引顯示，當我們進入第三季時，國內端不會有同樣的成長，可能接近持平。

Obviously long term we think we can grow the domestic intermodal business 5% to 10%. But we are in a period here on the domestic side and on some of the merchandise side where we see some temporal weakness because of excess capacity. But we fully expect that to be worked out over time and allow us to get back to more normalized growth rate as we move into hopefully the second half of 2017 or so.

顯然，長期來看我們認為國內聯運業務可以成長5%到10%。但目前在國內端以及部分雜貨（merchandise）端，我們正處於一段因產能過剩而出現的短期疲弱期。不過我們完全預期這會隨時間調整到位，並讓我們在希望是2017年下半年左右，回到較正常的成長率。

Okay, great. Thank you, Fredrik.

好的，很好。謝謝你，Fredrik。

Scott Schneeberger, Oppenheimer.

Oppenheimer 的 Scott Schneeberger。

I was going to ask on a couple smaller segments since we are at the end here. But with regard to metals, could you give us an update on what you are seeing there, in particular the steel? And is there a chance that it could swim to positive volume growth within a matter of quarters?

既然快到尾聲了，我本來想問幾個較小的品類。不過就金屬而言，你能否更新一下你們看到的情況，特別是鋼鐵？而它是否有機會在幾個季度內回到正的運量成長？

I think steel production year to date is relatively flat year over year. And part of what has helped that has been that the countervailing tariffs and so forth has been very helpful to stem the flow of imports into the United States.

我認為鋼鐵產量年初至今與去年同期相比大致持平。部分原因是反補貼關稅等措施非常有幫助，抑制了進口流入美國的速度。

Our volumes are down a little bit more than that and the reason for that is on one hand mill closures that has affected us specifically. We have one mill that we both have inbound and outbound to that has closed down as really a big driver for our volume decline. And we also are seeing the impact to the metal side from a little bit more truck competition that we've seen before.

我們的運量下滑幅度比這更大一些，原因一方面是鋼廠關閉對我們造成特定影響。我們有一家鋼廠，我們同時有進出貨業務，但它已關閉，這是我們運量下滑的一個主要驅動因素。另外，我們也看到金屬端受到比以往更強的卡車競爭影響。

So as we think about the second half I think it's a little too early. I think we are going to have some of these specific CSX-related issues that is going to hurt us as we get into the second half of the year. So I think the second half will be pretty challenging still.

因此當我們看下半年時，我認為現在還有點太早。我認為我們會有一些與CSX相關的特定問題，會在進入下半年時持續拖累我們。所以我認為下半年仍會相當具挑戰性。

But the key thing for us is to continue to work with our customers on the steel side, provide a better service product and continue to make sure we can reinvest in the business. And that's where we are focusing on.

但對我們而言關鍵是持續與鋼鐵端客戶合作，提供更好的服務產品，並持續確保我們能夠再投資於這項業務。這就是我們的重點。

Great, thanks. Just as a follow-up, and again a small segment, but waste & equipment, nice lift from revenue per unit in the quarter. Is that something that's going to persist or was that a one-time event?

很好，謝謝。再追問一下，同樣是小品類：廢棄物與設備（waste & equipment）這季每單位營收有不錯的提升。這會持續嗎？還是一次性事件？

There's a lot of changes depending on what you move in there because a lot of that equipment are some high wides that have very high revenue per unit because it's a very specific service, specific unit trains. And so that varies quite a lot from quarter to quarter. But overall positive pricing continues, but you will probably see more volatility in that line item than any other of the line items.

那裡的變動很大，取決於你運的是什麼，因為其中一些設備屬於超高超寬（high wides），每單位營收非常高，因為那是非常特定的服務、特定的單元列車（unit trains）。所以季度之間差異會很大。但整體而言，正向的定價趨勢仍在延續，只是你可能會在這個項目看到比其他任何項目更高的波動。

Okay, thanks again and congratulations.

好的，再次謝謝，也恭喜你們。

Thank you. And thank everyone for joining us and we will talk to you again next quarter. Thank you.

謝謝。也謝謝各位加入我們，我們下個季度再與各位通話。謝謝。

This concludes today's teleconference. Thank you for your participation in today's call. You may disconnect your lines.

今天的電話會議到此結束。感謝各位參與今天的電話會議。各位可以掛斷電話線。