CN + BNSF = ?

Trains Magazine General Discussion
1

Looks as though merger talks with the CN and BNSF are heating up again.

From ble.org

(The following story appeared at CalTradeReport.com on December 8.)

FT. WORTH, Texas – The Burlington Northern Santa Fe Railway’s healthy financial position is fuelling speculation in the trade media that it may be considering new merger opportunities to significantly increase both its service profile in the US, Mexico, and Canada.

Last week, several Canadian industry publications quoted an international rail consultant as saying that the rail carrier - one of the two major railroads serving California - may again attempt a merger with the Canadian National Railway, which operates the former Illinois Central, Grand Trunk Western, and Wisconsin Central railroads.

An article in a transportation law publication last month speculates that BNSF may also make a grab for the Kansas City Southern (KCS), which also controls the Tex-Mex and Mexico’s TFM railroad.

Wall Street analysts report that the BNSF will have some $2 billion in “free cash” to spend over the next 26 months on increasing the dividend paid to investors, buying back its own stock - reducing available shares and lifting the stock price - or acquisitions.

BNSF is North America’s second-largest railroad, behind Union Pacific, operating around 32,000 miles of railroad and collecting around $10 billion annually in freight revenue.

The UP - the other carrier serving California - operates a slightly larger track network than the BNSF, but earns around $12 billion in freight revenue annually. A BNSF combination with either the KCS or the CN could more than overtake the Union Pacific in terms of network coverage and revenue.

According to one railroad industry consultant, the Canadian National would be the BNSF’s most logical partner.

In 2000, BNSF and CN voluntarily cancelled merger plans after US regulators imposed a fifteen-month freeze on railroad c

2

Yeah, this is pretty much the same thing I posted a couple weeks ago, only now it’s been to CalTradeReport. Apparently it’s getting pretty serious.

3

CN+BNSF= CNSFE. Canadian Northern Santa Fe Eh. The paint scheme could be,red warbonnet,black carbody,with the roads initials spelled out on the side in a long white noodle[8D].

MERRYCHRISTMAS!

4

If BNSF buys the CN, keep “BNSF”. I don’t think I’m ready to see Canadian National running all over tarnation, not to mention a brand new railroad with a name that’s a mouthful.

5

Personally, I think that from an operations standpoint, it would be one of the most strategic mergers.

6

I dont think BNSF will change it’s name, remember it’s BNSF that has $2 billion, not CN. So it’ll be a BNSF taking over CN type of merger. And I dont think BNSF intends on changing their paint scheme when they just changed it.

7

I have to agree this time 100%. Go for it BNSF RAILWAY. CNIC+BNSF. I love it.
Allan.

8

CN + BNSF= not good! I would hate to see that happen, we have too few railroads as it is, and that would probably force UP to assimilate CP, and that would be the end of my life as I know it.

9

Let’s go with the flow people…it’s gonna happen sometime, we might as well get it over with now.

10

i’ve said this before- please let the name stay BNSF and keep the powerbar paint
BNSF+CN= Burlington National Santa Fe
BNSF+NS= Burlington Norfolk Santa Fe
if BNSF acquired either of those rr’s would it be bigger than UP? if they got NS they’d be operating all across the U.S.(now they primarily operate west of the Missippi river) just imagine… let’s see a mega merge

11

GO BNSF!!! I Think it will be pretty good in a business sense, It will give BNSF a route farther east, a route around Chicago and more track through Chicago.

12

Does CN have access to the NE and Eastern Seaboard (NYC, Philly, Boston, Washington etc)? What about KCS?

Mike in Tulsa
BNSF Cherokee Sub

13

I disagree. I think they should drop BNSF, and just use CN everywhere. I am ready to see CN all over tarnation…and with a short name like that, it is far from being a mouthful. [:D][;)]

14

I’m sure if they do merger there will ba a Canadian and a USA division. It would be cool to se more BNSF loco’s up here.

15

If they merge they wont call it “CN”. CN is already trying to erase Canadian from themselves. The government wouldn’t allow it either. They wouldn’t want the biggest railroad in America having a Candian name.

16

I read somewhere that if BNSF and CN merge the name of the new railroad will be the North American Railroad.

17

Canadian Fe

or

Santa National

18

Because CN has the best operating ratio in the industry, their market cap is about $20 billion, not $2 billion.
This would not be a good time for anyone to try to buy a possibly overvalued company.

19

Actually I look for the BNSF to buy the KCS think about it doubling their access to the Chemical coast also adds more power plants for more revenue. Gives them more interchange points with the NS allow them to bypass Chicago more. Plus gives them a replacement CEO in Haverty. He was the one that made the Santa Fe the best in the intermodal biz. He would be the perfect replacement when Krebs retires. Plus BNSF could pay almost all cash for the KCS. UP does not have a prayer on this one. No way is teh STB going to allow one railroad to control the Laredo gateway. Plus UP is the other owner of the other Mexican line.

20

I hope that after the next round of mega-mergers the Canadian roads will be left intact, but three are WAAAY too few railroads as it is.