Canadian Pacific Railway Comapny (CPR), Soo Line Holding Company (Soo Holding), Dakota, Minnesota & Eastern Railroad Corporation (DM&E), and Iowa, Chicago & Eastern Railroad Corporation (IC&E) have jointly filed a verified notice of exemption under 49 CFR 1180.2(d)(3) for an intra-corporate family transaction. DM&E currently has one wholly owned direct subsidiary, Cedar American Rail Holdings, Inc. (Cedar American), a noncarrier. Cedar American has two wholly owned subsidiaries: IC&E and Wyoming Dakota Railroad Properties, Inc. (Wyoming Dakota), a noncarrier. The transaction involves the merger of Cedar American and IC&E with and into DM&E, with DM&E being the surviving corporation. Upon completion of the transaction, Cedar American and IC&E would cease to exist, with Wyoming Dakota becoming a direct subsidiary of DM&E. DM&E will continue to be a direct subsidiary of Soo Holding and a “sister” corporation of Soo Line Railroad Company.
The transaction is scheduled to be consummated as soon as practicable after December 26, 2008, the effective date of the exemption.
CP took control of Cedar American’s rail assets back on Oct 30th. The above actions will clean out the paperwork/financial side of the house so there will be no reporting actions required. CP’s US assests are rolled into the Soo Holding Company. The investors are having a very nice Christmas!
What is still to be determined is Union representation. IC&E employees are represented by the UTU(IIRC). DM&E employes for the most part are not required to be represented by the UTU. I think some crafts have UTU membership at this point. Existing wage contracts on the DM&E will need to be reviewed. I suspect that over time, DM&E employees may become organized.
Here in Rochester, MN - It’s BAU. The ‘Stop the Coal Train’ crowd has gone quiet, but the City/Mayo Clinic are still looking for concessions that were never spelled out in the STB decision. I suspect CP & Rochester will get together in the future about grade crossings upgrades as DM&E offered to fund them before Rochester/Mayo Clinic started demanding a ‘by-pass’.
The CP ‘Christmas Holiday Train’ made a stop in Rochester and got good press. CP donated $2500 to the local food shelf(Channel One) and took in another $3500 in public donations while the train was there.
A conductor I know on the IC&E said that the IC&E and DM&E probably will remain seperate entities owned by CP, because in order for them to be CP Railway, they would have to renegotitate all their contracts, would would cost CP lots of money, becasue DM&E/IC&E employees make less.
DM&E will remain a separate subsidiary but the IC&E name will be totally dropped on January 1st. Both systems will be part of the DM&E subsidiary. Overall, other than the change of names for employees, I see very few changes coming as part of this. So far you’d never even know CP took over the DM&E and IC&E, both are running almost exactly the same now under CP ownership as they were independant roads. CP hasn’t even retired the GP9s yet.
What’s the difference? I live on the DM&E, and IC&E locomotives are common as dirt around here. They’ve never bothered keeping the equipement seperate, and both sport the same paint job.
The change will be that nothing more will bear the IC&E logo or name. Also like with the Soo Line, the DM&E will begin using the Canadian Pacific name for all non-regulatory purposes. Slowly I would expect some locomotives to be repainted. I would expect all SD40-2s other than the 6400 series to be gone within two or three years, and those within five years. The GP38 and GP40 types will last the longest.
These are some of the rumors that I have heard on the CPR. If they get into the PRB that they are expecting to run an extra 20 trains a day south of winona. (10 empty and 10 full trains) Req. them to put some of the old double main back in. Also, that they will be running right though Rochester with no by-pass. They will be upgrading the track in Rochester next year. Considering I’m MOW this is mostly about MOW pat of the merger. It my be the same with the trainmen and there union also. I do not believe that the DM&E will be apart of the Soo line at all. Mainly because all of the union contract are with the Soo line and this will be CPs way around getting out of having us go over there and do any work. As of right now they are planning on having all of teh work done with contractors and will not be letting any of use work over on any of the DM&E property. Wheather you are pro or anti union thats up to you, and I am not saying this to start anything. But, after saying that I do have to say that it is kind of crappy that you go and sell all of RR property and displace a lot of workers and now buy it back and then find out that you can’t work on it. The RR that now runs though your own town is owned by the company that you work for now says that you can’t work there. You have to travel 250+ miles on your own dime just to work a headquartered job. It sucks and CP will do whatever it can to get out of union agreements. Sorry if it sounds like a rant.
IC&E is BLE represented DM&E is UTU. The DM&E negotiated their contracts before the Oct 30th date for 6 years and are locked in. IC&E has not done a deal yet and will wait till after the 1st.The UTU deal IMHO is inferior and I HOPE we dont get represented by them. The IC&E contracts are going to be honored however so we can only hope.
The name will be gone but I dont expect CP to dump a lot of power down to us.maybe we will get old worn out SOO line or D&H junk.But I doubt you will see Dash 9’s here anytime soon on anything.(well short of the BNSF and UP coal trains lol)
Will be interesting. I hear also a lot of the haulage contracts they have for UP from the Twin Cities to KC will all come back over to us on the 1st and that they are looking for an intermodal ramp between Chicago and KC. One spot being looked at is Savanna.Davenport is next on the list.Given the bulk of container traffic coming out of the Quad Cities I am going to have to go with Davenport getting the nod.
Between the two locations, I would think Davenport would be a no-brainer. The Quad Cities are on an Interstate highway and Savanna is not. Additionally, the potential to generate local traffic strongly favors Davenport.
Sounds like postive things occuring, and business picking up, regardless of the econmy, and some of the downside things mentioned…Do you anticipate additional hiring picking up again after the 1st in conductor/brakeman jobs, in the Davenport/Savanna terminals? I know they were hiring up til near the 1st of December, but now have slowed, or are in a freeze.
Yes Davenport is the no brainer. Savanna has space but no real good access.Rumor is its going to be at the old strip track ( SOO into IMRL days IIRC) With Adrian Carriers in Milan having all those boxes then what better place to send them?
As for hiring, I am going to assume when things pick up then sure maybe they will.So far we have been kinda slow ( ok real slow in areas) but all in all still running pretty good.
Sounds like we are going to do New Years like Christmas. No tains on the line up till the second a couple for the 31st but then shutdown till next year ( I know such a long wait lol)
Last night our second trick DS was getting in the habit of saying " DME operations answering…" Needless to say he was getting flustered lol.I got the last train out of Marquette for Nahant. It was a flipping monster!!! 90x15 12,380 tons 5780 foot.2 SD 40’s ICE 6419 and DME 6090. The ICE motor had two traction motors cut out and the damn thing would trip a ground whenever she would transition.All kinds of fun fighting with it So my goodbye to the IC&E was memorable.
If anything I might run into him in Marquette. I know three people out of mason ones a SLE and the other two are new guys.
By the way, First train in the DME era was a Fruitland coal out of Camanche. Passed it on the way home form the in laws house.Happy New Year and Farewell IC&E!