CSX is laying off 180 people at its Corbin facility.
Corbin Mayor Willard McBurney said CSX officials contacted him Tuesday morning about the layoffs and closing of the locomotive shop, service center and car shop.
“The only things they will have down here is yard traffic,” McBurney said.
Rumors have abounded in recent days about possible layoffs at the facility and closing of some operations at the Corbin yard.
“They just walked in this morning and shut the doors,” said one source close to CSX.
The lost jobs represent about 50 percent of total employment at the Corbin facility.
All of the affected employees will receive at least 60 days of pay and benefits. Union employees also may have other benefits available in accordance with their respective labor agreements.
According to information from CSX, 190 jobs remain between train crews and yard workers.
The layoffs and closings, which are similar to those that occurred at the CSX facility in Erwin, Tenn. earlier this month, are the result of the downturn in the coal industry.
The one difference, being the switching yard in Erwin was also eliminated.
According to CSX officials CSX has seen a $1 billion less in revenue from hauling coal since 2011.
“Central Appalachian coal moving through the (Corbin) terminal has decreased 57 percent in 10 years, due to low natural gas prices and regulation,” CSX officials stated.
However, McBurney, who has a view of the CSX yard from his office, noted he has seen more trains loaded with coal moving through the yard in recent months.
CSX officials added that transportation of other goods through Corbin has been cut in half since 2005.
The loss of freight has resulted in a decrease in the number of locomotives needed to support the operations.
“These trends are expected to continue,” CSX officials stated.
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