If the CCP was still an independent regional today, how successful would it be? It seems to be making money for IC/CN. If they have/had the business, why couldn’t the CCP owners make a go of it back in the 90s?
CC&P borrowed the money to buy the railroad, and they had to make money moving the traffic to Chicago or the Mississippi River terminals. IC had little interest in most of that traffic and has let it go. The traffic on the line now, is moved a much greater distance over CN tracks, generating more money.
IC was looking to move Iowa grain to Southern Chicken farmers or Gulf ports. The difference was that when the line was sold, the people running the IC were looking to extract whatever money they could in the short-term, as they were not committed to being in the railroad business (they owned Whitman Chocolate and Midas Mufflers among other companies). When the IC bought back the Iowa line its owners wanted to be in the railroad business and saw the potential traffic available and knew they could make more money moving the grain to the south, than CC&P had made hauling it to Dubuque.
From what I’ve read, CC&P would not have made it, if it was still on it’s own. The first couple of years, their financial situation went backwards. They were trying to build up business by running twice as many trains, running somewhat short distances accross Iowa. They also had some sort of intermodal business that was costing them money.
When it was re-aquired, IC seems to have cut back the number of trains (and, I suppose the number of workers), and ran them longer, and for greater distances along IC track.
I wondered, if IC bought it back for less than they had so it for? Financially, I think CC&P was a money loser for it’s owners.
Actually I think the CC&P cut the number of trains and lowered the speeds before IC bought them back. I think I read in my book on Midwest regionals or Trains (can’t recall which) that when the CC&P changed presidents the changed their train operations in that regard.
We had a discussion on this several months ago. I cant find it, but there was considerable discussion regarding the selling price from IC and then the price they purchased it for. They paid more to buy it back.
The CCP’s revenue and net income were pretty good, if I recall. It seems somewhat of a mystery line for me when looking at the map of CN, but it does seem to generate significant corn and some coal.
ed
Are you sure you’re not thinking of Iowa Interstate?
You’re right on that. I went back and read up some more. When founding President Jack Haley departed in 1987, new management at CCC&P changed a lot of things back to a more traditional type railroad management scheme.
Next to the old C&IM, this is my favorite rail line.
Here’s some information reported as a court decision.
http://caselaw.lp.findlaw.com/cgi-bin/getcase.pl?court=8th&navby=case&no=953821p