Oh-oh, here we go. Penn-Central revisited.
I don’t think he is going to find a similar receptive operating culture on CSX then he had on those Western RR’s…which tend to be more CAN DO. Just a theory I have that if he moves to CSX it will be major culture clash. We’ll see though.
My guess is that if he goes to CSX, a lot of upper mgmt will be shown the door.
St. Paul,
Do you have a credible source for this claim?
Mac
Speaking for myself (but I think the same is true for CMStPnP) the opinions are based on HHH’s history and the current situation at CSX, as well as the typical scenario in other similar corporate situations. It’s not based on sources or rumors.
I wonder if our Canadian cousins have the ability to prevent anything resembling a merger of CSX and CP. That surely would be the end game here. I suspect they do and have my doubts that any combination would pass their sniff test.
A merger would likely be his end game; however, I doubt now that a Canadian road would be his primary merger target. A merger, if one is going to happen, would likely involve CSX and UP or BNSF.
Hey! What about KCS!!
And would UP/BNSF WANT CSX? What’s in it for them?
Seamless nationwide service would benefit both parties to the merger… at least EHH seems to think so. Maybe KCS too, who knows…
Put your Mouse over the NEWS menu at the top of this page and read the article next to the Hunter Harrison extended gut…I mean photo.
See my post above. There is a Source but if I link to it I am going to read about three posts from people that do not have access to read it because they are not subscribers or something to that effect. I thought you had to be a subscriber to post on this Forum but I am not sure.
Do you think he’ll paint that damn bridge?
Thank you, and Convicted One.
Your headline is third hand and unfortunately the source you copied it from, Bill Stevens, inverted the cause and effect, or the horse and the cart if you prefer. The investor group/hedge fund Mantle Ridge is the entity that is driving the process and has presumably hired Harrison as their railroad expert/boogyman. Mantle wants three (of 12) seats on the CSX board. Harrison is one of the tools in Mantle Ridge’s tool box. The point is this is not Harrison’s doing as your and Stevens’ headline implies.
I believe Harrison runs a large risk of ending up with egg on his face if Mantle Ridge succeds and installs him as CEO. The current management at CSX has already bogged it down with monster trains on 28 hour “day” cycles. The big train strategy can go only so far and I believe CSX has gone as far as it can, and perhaps too far. Service reliability still counts for carload traffic which means getting trains in and out of yards on time. If Harrison continues down the big train road I fear quality will suffer more than it already has driving additional traffic to the highway and depressing earnings.
Of course he could surprise us all and go to somewhat shorter trains on a 24 hour or less cycle. With the current traffic downturn there is relatively more main line capacity to support that strategy.
Bring popcorn!
Mac
Potential disposition via short line lease or abandonment:
B&O between Seymour IN and St. Louis
B&O west of Cumberland MD through WV
Clinchfield
All coal branches in KY, VA or WV
Mobile AL to Tallahassee FL
Atlanta GA to Augusta GA
Major downgrade - C & O from Cincinnati OH to Newport News VA
Also:
Former Western Maryland “Dutch Line” - Hagerstown to Baltimore
and possibly even the B & O “Old Main Line” Point of Rocks, MD to Relay MD.
I would doubt the portion of the C & O main from Richmond to Newport News will be downgraded, but west of Richmond ???
While we are at it - just abandon all of CSX - and all the traffic that is hauled. That will save a bunch of money and put 30K jobs on EHH’s scalp.
Better yet just abandon all the american railroads and put it all on the interstates.
Absolutely! After all, nobody ships anything by rail any more, do they?
It is interesting how all those ultra “free market” types on here seem to reject the proven successful business approach of H. Harrison (as measured by profitability and operating ratio), seen throughout his long career.
I agree.