Interesting news…CN has purchased the Ottawa Central Railway and the New Brunswick East Coast Railway. What’s next?..maybe they will try to bring the Saint Lawrence and Atlantic back into the fold although Gennessee and Wyoming seems to be doing a fine job with it.
Maybe the class 1s are beginning to regret some of their earlier decisions to sell off rail lines. I really questioned CP’s sell off of the Short Line (International of Maine)… MM&A also appears to be doing a fine job with that one judging from the volumes they are moving.
Interesting ! I believe (but am not sure) that these spin-offs occured post-privatization/ public offering of CN, so it isn’t like there was a major shift in business plan or corporate goals. It took only 10 years or so for the situation to change that much. Here’s the link to CN’s press release, which also has a link to a map:
Yes indeed…the spinoffs occurred post privatization…CN was privated in 95, and these spinoffs occurred in 98. Not that much has changed in the marketplace since then…which is why I wonder if maybe CN regrets divesting these lines 10 years ago. If anything…the market has worsened since 98…ten years ago there was paper (Repap) coming out of Miramachi…and the forestry sector in general was in better shape. I can understand the Ottawa Central purchase; however, the NBEC purchase makes me wonder if that wasn’t some kind of package deal i.e if you want the OC then you have to take the NBEC too. Oh well…at least for a short time CN will be the only remaining class 1 to roster an Alco/MLW fleet. I’m going to miss seeing those RS-18s once their gone…which will probably happen very soon. I’m a little surprised that the Irving family (who owns NB Southern) didn’t acquire the NBEC over the years…after all…they own vast tracts of land in NB…and the NBEC would have fit in well with their other businesses. At the present time they truck an awful lot of pulp, lumber, and wood chips all over the East Coast.
The Alcos (MLWs) are already laid up and are being sent to Homewood for auction with some already having been sold. Both RS-18u and C424 units are involved (all ex-CP)
CN has already replaced the MLWs with GP40-2Ws. The MLWs are heading for Homewood where they will be put up for sale, and if nobody buys them, they will be scrapped at CN’s Woodcrest Shop. If history repeats itself with the MLWs, CN will probably remove the traction motors, seats and anything usable from the MLWs at Homewood before putting them up for sale. I saw one of the Ottawa Central engines in the deadline next to Woodcrest already a few days ago but it was too far away to photograph. CN has sent at least 7 of the 10 Ottawa Central engines to Homewood already.
I can’t see CN getting the MMA. It might connect with CN up in Canada somewhere but other then that it would be another railway like the B&LE that doesn’t connect with the rest of the system very well. This deal with the OC and NBEC was probably a package deal just like the DM&IR and B&LE. The only reason CN owns the B&LE is because GLT wouldn’t sell just the DM&IR to CN.
What??? A Railway company actually investing in railways??? what kind of business sense is that?? Shouldn’t they be like a meat packer investing in yo-yo’s. First, sell off your initial assets then buy them back so you can expand your railway business, hmmmm, Maybe if the auto industry took a lesson from that funny little car called a Volkswagen, people may want a car that is not outmoded in a year and the companies are trying to sell expensive cars by telling you how many cupholders are included.
Apparently you are thinking of the original Beetle, since for the last 20+ years VW has been unsuccessfully searching for a replacement. Never owned one, but drove one a little and knew people who drove them for years. Simplicity and dependability were virtues, but out in the hinterlands it wasn’t easy to find someone to work on them. They were small inside, very underpowered, and handled oddly in emergency situations. Plus, they were as ugly as a bowling shoe. Not exactly the perfect vehicle. Do you still drive one?
I understand your attitude and share it to some extent, but the overwhelming majority of people want something NEW and EXCITING and PRETTY. Chevrolet beat the crap out of Ford in the late 1920’s because GM figured this out, and instituted the annual model change and numerous colors of paint and comfort/convenience options.
When it comes to the NBEC, there are a few considerations. Before the acquisition, CN had a single track line from Quebec City to Halifax handling four long distance trains each way plus locals. This line washed out a couple of times leading into the talks of the acquisition. Another item that weighs heavily with CN is their Salmon River Bridge
Word is that the bridge is in need of repairs in the near future. Lastly, there has been some groundlaying (maybe even breaking) for another container terminal in NS near Canso and I have heard unsubstantiated rumours about CBNS being next if the terminal gets even close to being operational.