Will the DM&E ever be profitable? The dream of creating a new Class I gives us a look at the early days of railroads with bankrupt and insolvency. They could be a good target if they are able to reach the P.R.B. My question to the group is if they do reach the P.R.B. Would one of the Eastern or Canadian Roads have an interest in acquiring the property?
The DM&E is a fallen flag, it bought I&M Rail Link to form the Iowa Chicago & Eastern Railroad.
Since when did DM&E merge into IC&E…I thought ICE was a subsidary
That is my my understanding too.
The DM&E will never reach a profitable status without huge GRANTS not LOANS and run as a non-union scab-sucking Republican scam of free enterpise.
The PRB coal will not be the answer. If anybody thinks the BNSF & UP will give up the coal traffic without a fight they have to be in the mindset of *** Chenney and Honorable George of the weapons of mass sestruction.
Tom
GOD BLESS THE GREAT NORTHERN
Dougal. DM&E is very much alive. IC&E is a subsidiary as mentioned above.
LC
I doubt DM&E reaching the PRB has anything to do with the Republican or Democratic parties. I’d rather leave the politics where they belong…on the political sites…
LC
Geez, I always have read the DM&E renamed itself.
DME and ICE are both owned by a holding company and they operate them jointly from Sioux Falls, SD. Cedar American Holdings, I think.
Should the DM&E reach the PRB would they be an attractive take over target for a Eastern or Canadian Road?
It is a distinct possibility.
LC
Will the PRB project generate enough revenue to pay back the $2B capital project?
Interesting question. Given the current high demand for coal from China and other parts of the far east it would seem likely. Of course, I haven’t done the math. I think that some of the issues that the DM&E expansion still has to get through securing ROW and getting through the court battles will ultimately be resolved and financing will become more available, especially if the trend towards construction of more coal fired power plants continues.
LC
Takeover by an eastern road is a good possibility. Canadian not so much, since all of IC&E is former Canadian Pacific, but who knows? I think that a KCS-ICE-DME merger would make good sense, since it’s basically end-to-end and an expansion of KCS to the north.
[2c],
-Mark
http://www.geocities.com/fuzzybroken
It is well known in the industry that KCS was looking at the IMRL as a potential acquisition, but lost out in the bidding to the Washington Group. At the time both the Gateway and IMRL were considered highly desirable by the KCS.
LC
The KCS would be interesting do they have connection with coal burning electric plants? I would assume the NS or CSX would be a possibility because of the eastern coal fire electric plants they service. Could the KCS bring the low Sulfur coal to tide water for export over seas? BNSF or UP with there Pacific ports would be at a better position to export coal to Asia. I was looking at the map of eastern coal fired electric plants. With the need for cleaner coal you would think it would be a no brainier for an eastern road to gobble up the DM&E. Any thoughts?
I think KCS is highly consumed with their efforts to expand South (TFM). I wonder if they’d really have the resources to tackle this too.
Perhaps not at the moment, but DM&E is not exactly at the PRB yet. By the time DM&E can expand and complete it’s western extension, the TFM deal should be wrapped up one way or the other. Assuming KCS wins TFM it will be a much larger more creditworthy company potentially capable of expansion.
LC