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Harrison: CP has agreement to sell Delaware & Hudson
Who owned the Erie Lackawanna and Delaware & Hudson at the same time?
Mr Marynowych.
Erie Lackawanna(EL) and the Delaware & Hudson(D&H) were at one time owned by Norfolk & Western. That ownership lapsed in the EL bankruptcy.
It should be noted in the previous article that CP says they are improving the North Dakota grain situation and in this piece Harrison tours the fact CP has fewer employees.
Oh yes and he is trying to get the operating ratio to the “mid-sixties” . By cutting employees? That is an interesting way to grow a railroad, by cutting it down.
If NS is indeed the mystery buyer (which makes the most sense), then I look foward to the possibility of seeing a D&H “heritage unit”… blue/grey lightening stripes of course.
Wonder if CSX is buying it?
Maybe they can sell what’s left of the Soo Line as well, to somebody who would invest some $$$ into the property and return it to a state of respectability!
So whether it goes to NS or Pan Am, it’s going to a previous owner. You’d think a railroad connecting to NY would have better fortunes.
Regarding a potential sale of the Soo, I would think CP would want to keep the main lines from Chicago to the Canadian border in Minnesota and North Dakota. However, the former Milwaukee lines to Kansas City and across northern Iowa might make sense. Could potential buyers include Kansas City Southern, Iowa Interstate, or even Iowa Northern (for the line across northern Iowa). Then again CP could potentially move to buy any of these (though I hope they don’t).
This reinforces my belief that CP is retrenching to Winnipeg, in the north, Chicago to the south and selling the rest. This is an opinion. It has no solid basis in fact-yet. CSX may want CP’s Detroit-Montreal route as it would fit into their existing route structure. But, CSX has problems (another entrance to Chicago from Willard/Cleveland is much more urgent) and may not be able or willing to take on any expansion at this time. KCS has to be looking at some of the CP’s former Milwaukee (or Soo Line) routes to extend their markets as well. Landon from Illinois has it pretty much right as far as I am concerned.
Most of the traffic on the D&H already belongs to NS, so why not sell NS the rest of the traffic and the maintenance. NS gains complete control of the Crescent Corridor to Albany and Pan Am Southern, improving competition with CSX in New England.
I hope the former Milwaukee Road lines in Iowa aren’t in too much jeopardy. KCS doesn’t have a stellar history of using lines they’ve purchased. The example I think of immediately is the former Chicago & Alton line from Mexico to Fulton, Missouri. They never used it and it fell into disrepair. Now owned by a short line, it’s so raggedy no train has been to Fulton in probably 10 years. Hopefully they treat the MILW better, should they buy it.
The scuttlebutt I’ve heard is that NS is buying the D&H from Mohawk yard south. The D&H from Mohawk yard north would remain CP.
One theory is that EHH is freeing up capital so he can attempt a merger with (or acquisition of) KCS.
Oh, Mr. Webster, I so hope you’re wrong about that.
I wonder if the sale of D & H could also mean CP would sell off all or part of the old ICE. I would bet UP would like Chicago to Clinton.
I hope they sell this line Norfolk Southern is a great railroad.
If the end result is acquisition by the NS not only should there be a D&H livery Heritage unit added to the fleet.
But a passenger ’ extra ’ to celebrate the event northward. All the way to Montreal.
Bring x-N&W 611 to Canada for the first time with the markers on their x-NYC 20th Century observation car. HA !
I hope NS upgrades this route, and negotiates trackage rights to Montreal, so they can run trains from NJ to Que. using the old Erie route out of NJ…
Anyway, this is good news, although it rids the northeast of some RR diversity…
I think a NS D&H heritage unit would be black with yellow nose stripes.
It was a company called Dereco.