Well, since it’s a fire sale, BNSF from Memphis to Nashville.
Our State hasn’t had any “budget woes”. We’re not drowning in debt, like some other states. Instead, we play a giant game of tug-of-war over what to spend our money on. You know, the way it should be. Lesser men choose to not choose and spend all of the money, instead of battling over how to divide up what we have. I’ve been pleased to be a citizen of Michigan, and I think by and large there is enough compromise and balance that everybody gets some of what they want.
That being said, while I have no on-the-job experience with the CSX lines in Michigan, I have spent many years studying them and so here are my thoughts about the whole question of CSX trimmings in Michigan.
For those unaware, first off, some exposition. The current CSX is Michigan is a distillation of the old Pere Marquette, altough much shrunken via the C&O, Chessie and more recently CSX. What’s left is the Flint-Plymouth-Toldeo main, and the Porter, IN-Grand Rapids-Plymouth-Detroit main. There is a short branch in Grand Rapids used to access several shortlines, and they also own the PH&D out of Port Huron, accessed from Flint via trackage rights with the CN.
The last round of sell-offs was around 2005, when CSX sold the branch to Muskegon from West Olive (near Holland) to RailAmerica’s Michigan Shore. They also sold-off/leased out the branches north of Grand Rapids to Marquette Rail. These two are both G&W properties now, and interchange exclusively with CSX at Holland and Grand Rapids, respectively. Also in 20
I was also thinking that New Orleans- Mongomery- Jacksonville would be a pretty good line for someone…
Should be a valuable line, if not for CSX.
I’m sure N.S. will have something to say about N.J., since it owns half of Conrail Shared Assets.
I guess West Virginia must be making enough money to not be in the spin-off list. Hope it’s true!
My guesses for Ohio:
Branchlines from Sterling on the old B&O main to Lorain and Cleveland;
Branchline from the Ohio River through Marrieta to Relief;
Mainline from Galion to Columbus;
Mainline from Toledo to Kenton; and l
Longer term if service changes are made the mainline from Cincinnati to St. Louis. Get your bids in soon.
Over and out,
Lou
Maybe the old Western Maryland “Dutch Line” from Baltimore to Hagerstown? Maryland Midland (now Genessee and Wyoming) tried to buy that line years ago. MMID connects to it on both ends so it might make sense.
If I was EHH I would spin lines off to an LLC short line conglomerate much like the INRD is now, wholly owned by CSXT. This would allow different operating requirements, rules and expectations without affecting the parent companies standing on/with Wall Street and the new conglomerate would not be publicly traded. In essence make two out of one. All the gymnastics of valuation, bidding, negotiations are avoided. Put all the wood from the trunk of the tree in one pile and the wood from the branches in another. You still own all the wood.
On Sunday one week ago I was dining with a friend who was a former Conrail operator and a long time WM fan who related that he had heard from some railfans (just railfan rumors/speculations?) that the Dutch line was on the block for divestuture. Our meal was at a country B & B that abutts the Dutch line and, to add a touch of emphasis, a train rumbled past, something I had never seen before and any of our previous Sunday feasts. He was surprised since he had believed that there were no scheduled trains on Sundays. I was able to get a tiny glimpse of the westbound movement which consisted of mixed freight, and seemed a decent size for a local (which I assumed it was).
It is rare to see a through train on that line any day of the week, especially mixed freight. Most general traffic moves from Hanover, PA west to Hagerstown and back. A daily rock runner goes south at night and the empties return to the quarry at Hanover the next afternoon. Growing up along that line I remember long manifests going west from Baltimore along with unit grain and coal trains going east. Occasionally there would be a surprise like a train load of tanks going to Ft. Holabird in Baltimore to be shipped overseas, or a rare TOFC train. THe TOFC trains mostly went up the main line through Westminster where Maryland Midland runs now.
Can you say Winona Bridge??
Like Balt ACD still waiting to see what Harrison intends to do with the lines in Michigan. They are out of the triangle Harrison wishes to develop and in his mind should be spun off to short lines. I know CSX personnel in Michigan who are concerned about this.
I live outside of Gettysburg, and sometines I will se long trains with up to 5 SD50;s, or at little as 2. Mostly mixed freight , but a lot of covered hoppers are on the trains. SD50’s seem to be the norm for power, but occasionally a B-B unit or a road slug will bin in the mix depending on the trailing tonnage.
Since this is one site where one can speculate to ones heart content, allow me to share some thoughts, whether or not they are in left field. Some possible line/property sales could be as follows:
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The Hudson valley line from poughkeepsie to Hoffmans currently leased to, I believe, Amtrak is sold to them.
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The CSX owned ex C&O trackage in Virginia currently leased to BBRR sold to VA DRPT and continued lease to the current tenant.
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The S line from AM junction just north of RVM all the way to Boyan wye in Raleigh to VA and NC for the SEHSR. Maybe this could breathe new life into the S line south of Raleigh, if that line isn’t on the list to be spun off.
One thing to remember when speculating about line sales.
EHH will not let anything go at fire sale prices.
Anything sold will be done at above market value.
But what will Harrison do if he has no takers at inflated prices? Most of CSX’s lines in Michigan are running low on traffic and with the exception of the line to Detroit have precious few customers. The Saginaw Sub north of Flint has already become a short line (not sure if it was sold or leased). The Grand Rapids sub still has coal and Amtrak but it, too, is short of customers along the line. The Plymouth sub, Plymouth to Grand Rapids is also pretty much devoid of meaningful traffic.
Could the Michigan lines CSX would like to shed be profitable under shortlines? There are some possibilities but it would take some experienced marketing folks and quality service to make them so. Holding out for high dollar may not be Harrison’s best plan.
Who says they aren’t ‘earning their keep’ today. As long as a line makes enough to pay for it’s expenses there is no real rush to sell it. CSX divested and/or abandoned all the lines that couldn’t pay for themselves long ago. There may be lines on the CSX that are not ‘big earners’; but from what I witnessed in the 36 years that CSX was on my paycheck they didn’t keep lines that lost money.
The best response I can offer is based on what information my CSX and CN signal maintainer friends have confided in me. Of course in business rumors fly at the speed of sound while factual information plods along at a snail’s pace. All those I know have been concerned for some years they may have been forced to move to retain their employment with CSX or Cn or be forced to take employment with a short line or a contractor should they choose to stay where they are.
I have been told short lines in Michigan favor contracting out signal and track maintenance and have met a few guys who were previously rails and now working under totally different circumstances and no longer covered under the terms of the RRB.
Would you be concerned regarding their future given they planned on receiving RRB benefits and suddenly found themselves shuffled off to another program that left them in the lurch financially? Had I worked for forty years expecting RRB benefits and suddenly be told I would be livid as I suspect you would.
IMO, that change indicates loyal employees mean nothing to management. They are simply disposable pawns who management decrees sacrificial in the quest to capture the king.
It’s one big and stinky game of financial and political chess.
My track foreman hit the jackpot and retired in good stead after 42 years of service. Others may, given today’s penchant for reducing expenses to benefit investors m
[quote user=“Norm48327”]
BaltACD
Who says they aren’t ‘earning their keep’ today. As long as a line makes enough to pay for it’s expenses there is no real rush to sell it. CSX divested and/or abandoned all the lines that couldn’t pay for themselves long ago. There may be lines on the CSX that are not ‘big earners’; but from what I witnessed in the 36 years that CSX was on my paycheck they didn’t keep lines that lost money.
The best response I can offer is based on what information my CSX and CN signal maintainer friends have confided in me. Of course in business rumors fly at the speed of sound while factual information plods along at a snail’s pace. All those I know have been concerned for some years they may have been forced to move to retain their employment with CSX or Cn or be forced to take employment with a short line or a contractor should they choose to stay where they are.
I have been told short lines in Michigan favor contracting out signal and track maintenance and have met a few guys who were previously rails and now working under totally different circumstances and no longer covered under the terms of the RRB.
Would you be concerned regarding their future given they planned on receiving RRB benefits and suddenly found themselves shuffled off to another program that left them in the lurch financially? Had I worked for forty years expecting RRB benefits and suddenly be told I would be livid as I suspect you would.
IMO, that change indicates loyal employees mean nothing to management. They are simply disposable pawns who management decrees sacrificial in the quest to capture the king.
It’s one big and stinky game of financial and political chess.
My track f