Join the discussion on the following article:
CP+CSX: The next round of railroad mergers could be at hand
Canadian Pathetic and Chicken S@@@ Xpress - the two would really deserve each other.
If this is going to happen its going to repeat contrail or penn central csx hopefully won’t let this happen.
Let’s leave things alone until the individual railroads get what they have in order. With all fo the congestion and delays that U.S. railroads are experiencing their managements need to spend all of their time digesting what is going on now. If a major merger is thrown at them there would be total system wide breakdown because of responsibility overload.
Keep it simple for now until things are running a lot smoother.
CSX is desperate but not that desperate. They were all excited and throwing parties until they seen which Pacific was one the phone.
The Railroad Retirement Impact?
I really hope this doesn’t go through, it will be a DISASTER!!!
The network will get too big, customer service will get worse than it already is and then they will go the way penn central did (painfully).
Bottom line, DON’T MERGE!!
The combo would own a significant majority of IHB. So here’s the EHH solution to Chicago congestion.
Makes sense, When the Panama Canal’s widening is done, Miami and other ports served by CSX will be at CP’s hand just like CN has Mobile & Nawlens (New Orleans). Supposedly containers will triple on the east coast. CP wants a container from MIami to Canada in one train, its tactical. Whether it goes thru or CP or CSX will be a good marriage for both, who knows. To Paul in D.C. Railroad Retirement wouldn’t be an issue, you’d still get it regardless, but I’m no RRB lawyer. But CP’s reputation is job cuts, So I personally don’t think it’s a good idea, heard that guy from CP likes to chop employment.
I agree with Chris Calton on this one. CSX would probably much more excited if Union Pacific was the one calling. As far no merger mentality, I have a different opinion. Congestion is happening on two fronts. First on the lines themselves because of train crews and locomotive. Due in big part to the Class 1’s own makings. Second, Terminals such as Chicago between the Class I’s themselves. Mergers will go a long way in finally creating a true east/west and north/south system.
.
So either the Class I’s merge or they make the big investments in and around Chicago or accept more miles on their trains and add sidings in order to do interchange at different locations, like UP handing off traffic to CSX in St. Louis instead of Chicago.
No no no no no no. But if they did, will theyre company name be CPSX?
to me. a merger between csx and cp. would be a BAD idea. but then again i am 21 and what do i know? i’m just a railfan and want to work for the railroad.
Interesting the this announced on the Sunday of the Thanksgiving weekend. Trying to avoid Canadian comments, Hunter?
This would be a combined CP company and with that comes the 20% Canadian corporate tax rate vs the 39% US Corporate tax rate. It’s how CP can afford CSX.
Maybe I’m overly cynical, but I wonder if the real reason for this proposal is bigger and quicker profits for executives and shareholders and not better service to customers - look at UP’s repeated meltdowns following some of its recent mergers. How big is big enough? Maybe the problem is not too many major railroads but too few.
No need for name calling, only shows your ignorance! I agree with Brad Lee totally. Continue to work on the capacity problems like they’ve been doing. Also continue to address any “bottle-neck” problems in the Chicago area. We don’t need any more mergers at this time. Mergers would only destroy more competition at this point in time. Let’s perfect and improve what we have now, including AMTRAK!
This merger would destroy almost no competition as they have almost no parallel lines. I don’t know whether single line service, especially around Chicago, would improve service or whether it would get worse because they don’t yet know how to manage it. It seems to me that big investments will have to be made regardless of mergers. If they own a majority of IHB, they could invest in its capacity without consulting other carriers.
Another possible way to mitigate Chicago congestion would be for CP to negotiate rights on Iowa Interstate, Metra, and CSX (just Iowa Interstate if CP & CSX merge) between Blue Island and Davenport. Through traffic from Indiana could head west to Davenport before turning north, avoiding much, but not all, of the Chicago bottleneck.
Regarding the old Rock Island west of Blue Island, The Rock used to use its avoidance of Chicago congestion to get hot traffic well into its decline as they had enough head start out of Chicago to still beat BN & CNW to Council Bluffs, even over decrepit track. This line has potential for CSX to connect not only with CP, but UP and BNSF as well, in Joliet.
Finally, if CSX isn’t interested, might CP look to NS or someone else (UP, BNSF, or KCS)?
I’ve thought for a while that Iowa Interstate might be a logical candidate to join CSX . . . except for the fact that CSX a couple years ago handed some of the Rock over to them.
Considering CP’s usually schizophrenic management (sell the Soo’s KC line, buy it back; buy the DM&E, then sell it), I wouldn’t worry about this coming to fruition.
Regarding Iowa Interstate, I truly hope to see them remain independent. They have steam locomotives, and as a Rock Island fan, I love their heritage unit. If they have to merge someday, CP, CSX, and NS all make sense. My preference would be NS. I am enjoying seeing the NS-IAIS interchange traffic in Peoria, NS has a steam program, and maybe they would add IAIS and RI heritage units to their fleet. However, an independent IAIS is my first choice. I don’t mind them granting CSX trackage rights to Davenport to interchange with CP though.