CSX Reopens Expanded Howard Street Tunnel Ahead of Schedule, Strengthening East Coast Freight Growth

Rhea-AI Summary

CSX (NASDAQ: CSX) has announced the early completion of the expanded Howard Street Tunnel, a $450+ million infrastructure project that modernizes freight rail transportation along the East Coast. The historic tunnel, originally built in 1890-95, will enable double-stacked intermodal trains through Baltimore once additional clearance projects are completed in early 2026.

The project, funded through a partnership between CSX, the State of Maryland, and federal agencies, will increase Port of Baltimore's business by 160,000 containers annually and create over 13,000 new jobs. The expansion involved over 450,000 man hours of work and will provide seamless double-stack capacity from Maine to Florida, offering a more cost-effective and environmentally friendly transportation solution along the I-95 corridor.

Positive

• None.

Negative

• Additional clearance projects still needed until early 2026 for full operational capability
• Significant capital investment of $450+ million required for the project

Insights

Transportation Infrastructure Analyst

CSX's Howard Street Tunnel expansion enables double-stack capacity, boosting freight efficiency and creating substantial economic benefits along the I-95 corridor.

The $450+ million Howard Street Tunnel expansion represents a transformative infrastructure achievement for CSX that resolves a critical bottleneck in the East Coast freight network. By enabling double-stack container capacity through Baltimore, CSX has effectively completed the final piece in creating a seamless double-stack corridor from Maine to Florida, substantially enhancing its competitive position in the I-95 corridor.

The economic implications are significant. The Port of Baltimore will gain approximately 160,000 additional containers annually and generate over 13,000 new jobs according to project estimates. This positions CSX to capture modal conversion opportunities from highway to rail, particularly beneficial as shippers increasingly prioritize cost-efficient and environmentally sustainable transportation options.

What's particularly impressive is the engineering feat involved – rehabilitating a 130-year-old tunnel while preserving its historic character. The scope included installation of 1,128 dewatering wellpoints, placement of nearly 1,200 precast slabs weighing 10 tons each, and removal of over 25,000 cubic yards of excavated material, all accomplished in 233 consecutive days of 24/7 work. More remarkably, the project finished ahead of schedule, demonstrating exceptional project execution.

For CSX, this infrastructure improvement creates a long-term competitive advantage by lowering operating costs per container, enabling more efficient asset utilization, and creating capacity for volume growth. The public-private partnership model used to fund the project – combining CSX funds with state and federal contributions including a $125 million federal investment – illustrates how strategic infrastructure can advance with shared investment, producing benefits for both the private operator and the public transportation network.

A transformative infrastructure milestone decades in the making strengthens Maryland’s economy and East Coast freight movement

JACKSONVILLE, Fla., Sept. 26, 2025 (GLOBE NEWSWIRE) -- CSX (NASDAQ: CSX) today announced the re-opening of the expanded Howard Street Tunnel, a historic and transformative $450+ million infrastructure project that will modernize freight rail transportation along the East Coast. The project marks a major milestone in the decades of effort by state, federal, and private partners to deliver a long-sought boost to Maryland’s economy and the nation’s supply chain.

““The completion of the Howard Street Tunnel reflects the dedication of our people — a once-in-a-generation achievement that will drive commerce, jobs, and growth across Maryland and the East Coast for decades,” said Joe Hinrichs, President and CEO of CSX. “This project reinforces CSX’s position as a high-performing, customer-focused railroad investing for profitable growth.”

Originally built from 1890-95, the Howard Street Tunnel has been a vital artery in America’s transportation network for more than 125 years. With the tunnel project completed, and once additional clearance projects are complete in early 2026, a key I-95 corridor bottleneck will be cleared and double-stacked intermodal trains will move through Baltimore. With this upgrade, CSX builds on its record of having the fastest and most efficient freight rail route along the I-95 corridor, giving customers a clear service advantage from Florida to the Northeast. The project also unlocks new lane-conversion opportunities, enabling shippers to shift even more freight from highway to rail.

The project was delivered through a partnership between CSX, the State of Maryland, the Federal Railroad Administration, and the U.S. Department of Transportation. Together, these partners invested in modernizing a 19th-century tunnel to meet today’s freight demands while preserving its historic character.

“President Trump's $125 million investment into the Howard Street Tunnel Project is proof of this administration's devotion to enhancing freight rail efficiency across America,” said U.S. Transportation Secretary Sean P. Duffy. “It's also a powerful example of what we can accomplish as a country when we make business attractive for private-sector partnerships. Together, we are getting America Building Again."

“With the Howard Street Tunnel’s reopening, CSX is now able to unleash the full strength of our network ahead of schedule, removing a long-standing volume constraint along the I-95 corridor,” said Mike Cory, Executive Vice President and Chief Operating Officer at CSX. “Even while navigating this and other major infrastructure projects over the last year, CSX has maintained the strong performance that customers have come to rely on. With this project now complete, our network is stronger than ever, underscoring the adaptability of our system and strength of the ONE CSX culture.”

“The Howard Street Tunnel project will transform Maryland and the Port of Baltimore,” said Maryland Governor Wes Moore. “Once completed, this initiative will help grow our economy by expanding business for the Port and creating thousands of jobs. In partnership, we are building pathways to work, wages, and wealth for all.”

The overall project is expected to provide the East Coast with seamless double-stack capacity on rail from Maine to Florida. Double-stacking is a more cost-effective way to transport freight by rail compared to trucks, reducing congestion along the busy I-95 corridor, and delivering environmental benefits with less emissions. It will also increase business at the Port of Baltimore by approximately 160,000 containers annually and generate more than 13,000 new jobs. 

Key facts from the Howard Street Tunnel’s expansion include:

• Over 450,000+ man hours worked to date, peaking at 175 field craft, 20 subcontractors, and peak salaried supervision staff of 40 engaged in the expansion
• 233 consecutive days of 24/7 work in the tunnel (Feb. 5 thru Sept. 25)
• 1,128 dewatering wellpoints installed
• 1,188 PCIS (precast invert slabs) placed, weighing in at nearly 10 tons each
• 14,276 linear feet of wall drain installed
• Over 4,000 cubic yards of concrete placed
• Over 24,000 cubic feet of grout placed (mixed by hand)
• Over 25,000 cubic yards of excavated invert material removed from within tunnel
• Over 78,000 linear feet of temporary electrical cable installed
  
  

Additional quotes from Maryland leaders

• “Upgrading and maintaining our infrastructure keeps Maryland connected to the rest of our nation – and the globe. I am thrilled that the Howard Street Tunnel is now open for train traffic. This upgraded tunnel will strengthen the Port of Baltimore’s competitiveness and will allow for double stack trains to go through the tunnel – forever changing our supply chain for the better,” said U.S. Senator Angela Alsobrooks for Maryland (D- Md.)
  
  
• “I’m incredibly proud that in just over seven months, the Howard Street Tunnel has reopened for regular train traffic. The Howard Street Tunnel in Baltimore has been crucial to transportation and trade in Maryland since the late 1800s, and it’s a testament to CSX and its engineering team’s hard work in modernizing this historic route for the future. Today’s opening was made possible thanks to key partnerships between CSX, the State of Maryland, the State of Pennsylvania, and the U.S. Department of Transportation – with $125 million of federal funding,” said Congresswoman Elfreth (MD-03).
  
  
• “This is a project that’s been talked about for most of my life—and for good reason,” said Mayor Brandon M. Scott. “The new Howard Street Tunnel will allow more freight to move through the I-95 corridor, driving economic growth in Baltimore and beyond. I’m grateful to all of our partners in the public and private sector who worked for decades to make this moment possible.”
  
  
• “Today marks a significant milestone in the Howard Street Tunnel project, and we are proud to be one step closer to having a more competitive and connected Port of Baltimore,” said Maryland Acting Transportation Secretary Samantha J. Biddle. “Thanks to the partnership with CSX and the dedicated crews who modernized this 130-year-old tunnel, we are preparing to move double-stacked cargo more efficiently, unlocking new economic opportunities for Maryland and the region.”
  
  

About CSX

CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural and consumer products. For nearly 200 years, CSX has played a critical role in the nation’s economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation’s population resides. It also links more than 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike. More information about CSX Corporation and its subsidiaries is available at www.csx.com. Like us on Facebook (http://facebook.com/OfficialCSX) and follow us on X, formerly known as Twitter (http://twitter.com/CSX).

Contact:
Matthew Korn, CFA, Investor Relations
904-366-4515

Austin Staton, Corporate Communications
855-955-6397

FAQ

What is the significance of CSX's Howard Street Tunnel expansion project?

The $450+ million project modernizes freight rail transportation, enabling double-stacked containers through Baltimore and providing seamless capacity from Maine to Florida, increasing efficiency and reducing transportation costs.

How many jobs will the CSX Howard Street Tunnel project create?

The project will generate more than 13,000 new jobs and increase the Port of Baltimore's business by approximately 160,000 containers annually.

When will the CSX Howard Street Tunnel be fully operational for double-stack trains?

While the tunnel has reopened, full double-stack operations will begin in early 2026 after additional clearance projects are completed.

How much did the federal government contribute to the CSX Howard Street Tunnel project?

The U.S. Department of Transportation contributed $125 million to the project through federal funding.

What are the key construction statistics of the CSX Howard Street Tunnel expansion?

The project involved 450,000+ man hours, 233 consecutive days of 24/7 work, installation of 1,128 dewatering wellpoints, and placement of 1,188 precast invert slabs weighing 10 tons each.