CN and GLT

Trains Magazine General Discussion
1

Before I ask my question I want to make sure I have my facts straight:

Canadian National acquired GLT in order to take over the DM&IR whose trackage they needed to streamline their system.

IN the process, they acquired two lake shipping companies, and the B&LE.

THe B&LE, or so I have heard, is not being merged int the CN system, but continues to run under it’s own flag. I assume that the lake ships are doing the same thing.

With this in mind (if it’s all true) why did CN buy GLT? Why didn’t they just buy DM&IR from GLT and let them go along their merry way.

I’ve also heard that they are waiting for a high enough bid, nd intend to sell the Bessie when they receive this bid. Is that true? And if so, what’s the chance that RailAmerica, and G&W will be the highest bidder? [;)]

2

As I recall CN only wanted to buy a mile or so of trackage in Duluth or Superior, but Great Lakes Transportation was in dire financial straits, and their owners were not willing to part with the mile or so of track CN needed unless CN bought all of GLT. It was not CN’s intention to start out that way.

Bruce

3

This is a story that is much more complicated than it seems.

In 1988, USX spins off DM&IR; Elgin, Joliet & Eastern (EJ&E), Union RR, the Pittsburgh & Conneaut Dock Company, Bessemer & Lake Erie (B&LE), Birmingham Southern, the Great Lakes Fleet and Warrior & Gulf Navigation into subsidiary Transtar, then sells majority control to the Blackstone Group and USX.

This was the beginning of the “dark ages” on the Missabe. Blackstone destroyed the DM&IR. First thing to go was the wash racks. Then anything not nailed down basically was scrapped to make money for the shareholders. The Missabe was always a “fancy” railroad, much like the WC, where the employees had a lot of pride. They were famous for putting “DM&IR” anywhere they could. Even the vents in the Diesel House were stamped “DM&IR”. Any surplus assets were disposed of. There was a large shift in management and without naming names a number of career employees found themselves “relocated” to the desolate outpost that is Keenan, namely the General Foreman of the Diesel House, because their ideas didn’t quite jive with the bean counters.

The employees noticed a distinct shift in philosophy from management. This was not the same Missabe. Things from the ground up didn’t change all that much, especially to an outsider, but make no mistake, these were dark times and the beginning of the end for the DM&IR.

In 2001, USX takes back the Union Railroad, EJ&E, Birmingham Southern and Warrior & Gulf Navigation from the Blackstone Group.

DM&IR, Great Lakes Fleet, B&LE and the Pittsburgh and Conneaut Dock Company were spun off from Transtar into the new company Great Lakes Transportation (owned by Blackstone Holdings). For the first time in over 100 years DM&IR was no longer associated with US Steel.

By this time, most of the higher ups were located in Monroeville, Pa