This is a link to an article in the Huron(S.D.)Plainsman newspaper about the DM&E/Rochester issue. It’s interesting to see a different perspective, one from a pro-DM&E city. Huron, at one time, was set to be the maintenance headquarters for DM&E, and provide a lot of jobs locally. It’s a city that has seen it’s heyday, and is now dealing with population loss, and a none-to-rosy economic outlook. I think Huron would like to have a lot of trains running through there.
Also note, that somewhere in there, it says that Rochester opponents said DM&E would run up to 43 coal trains per day! That’s one coal train every 34 minutes,plus grain trains and mixed freight trains. Man, I want to see that![:P]
It all comes down to MONEY Murphy Siding and simply CP Rail could outspend the Mayo Clinic and the city of Rochestor when it comes to Lawyers and PR Firms when it comes to saying this one city is keeping over 3 thousand HIGH paying Middle class jobs from being created. Also CP Rail can pay for the Entire PRB expansion on their own without any loans from the Federal Goverment and also the bankers by using their own Bonds they can issue and also their own revenue they generate. Mayo saw the handwriting on the wall and is now BLUFFING trying to get everything they want without being called. If CP rail calls the bluff watch Mayo and the City of Rochestor get bent over worse than the Stock Market has been in the past few weeks.
I am not sure I agree with you that CP could easily fund the PRB expansion. They are going to need capital to do this. Their free cash flow wont do it. They will either have to float bonds or go for financing. The loan pool has dried up for right now. Not to say they wont get the $$$ they need, but it will take some effort.
This conclusion that Mayo realizes they are outgunned, and are ready to wave the white flag is not obvious to me. I don’t think CP is as sure about defeating Mayo as many on this forum are. As far as I know, this is the first time Mayo has made their demands known. Frankly, I think CP is breathing a sigh of relief that Mayo has finally laid their demands on the table. To be sure, the grade crossing work will cost a fortune, but otherwise their demands are not a big deal.
CP may have a lot of money to buy lawyers, but so does Mayo. And I doubt that CP would want to win the legal battles while losing the war by besmirching their brand. Nobody wants to be known as a bully in these sensitive times.
From the article: “Quite frankly, with the DM&E, we got off on the wrong foot,” said Dennis Hanson, president of the Rochester City Council.
“From then on, everybody planted their feet in the sand,” he said. “That made it tough to negotiate. We want to make sure the new owners know we want to be good neighbors.”
This time around, sans brinksmanship? Sounds plausible to me.