The eastern American Class I railway also posted a 15 per cent fourth quarter net profit increase to US$491 million, drawn on revenues of $3.2 billion, up 5.6 per cent.

 

The Jacksonville-based company said it expected a strong increase in its freight business and double-digit earnings growth in 2015.

 

"We expect to continue growing our intermodal and merchandise businesses faster than the economy, pricing above inflation, and driving efficient asset utilisation," said CEO Michael Ward.

 

CSX's oil costs fell 13 per cent to $361 million as global prices fell. But while it paid less for fuel its main revenue driver oil shipments to east coast refineries were affected "due to increased supply of crude oil from domestic shale drilling activity".

 

Like the other major US railroads, CSX has been playing catch up with an unexpected rise in demand over the past year as the economy has grown, adding locomotives and crews to handle more freight.

 

CSX's intermodal volumes increased five per cent in the fourth quarter driven by strong domestic demand. However, international volumes were sluggish, with one per cent growth as a result of market loss. 

 

Tightening trucking capacity and strong growth at customers helped domestic intermodal volumes increase nine per cent. 

 

Said Mr Ward: "This quarter's performance is further evidence of CSX's ability to further capitalise on economic growth, helping to drive strength across the company’s diverse markets. The past four years have been transformative, and we have emerged as a stronger company for our customers and our shareholders."