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Harrison just wants to talk to NS
I still think Harrison Hunter needs to focus more on straightening up the mess with Canadian Pacific’s safety issues, than go after a merger with Norfolk Southern. NS has the best safety record in the industry. From what I read in this article, looks as though the “merger” wasn’t worth anybody’s time. There’s too much against the merger in the first place. Hopefully this subject will finally come to an end, but I’m not opposed to railroads spinning off new regional carriers like in the '80s and '90s. For now, please no more mergers!
Sounds to me like this might finally be coming to its’ logical end…no merger!
What an arrogant s-- !!! Even though most would agree that we have way too many ’ career ’ politicians, who generally look out for their own interests, I bet even Donald Trump would argue that 99.9% know how to spell " railroad " !!!
I hope and pray that EHH will now just go away, and we won’t have to look at his ’ cheshire ’ mug again !!!
NS shareholders didn’t want to hear it because CP’s major shareholder, Ackerman I believe, at end of day can’t pay them enough by leveraging CP. That is my take
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However, How about flip the coin and NS shareholders pursue CP? In other words, NS think big and broad. NS gets direct access to Balken & Alberta Sand oils for East Coast refineries when the prices go back up. It gives them a straight run through on Chicago with west coast port access as well as access to Toronto and Montreal without the cumbersome interchange and cumbersome trackage agreements. Also, with declining coal revenues NS will need to get leaner & become a corridor railroad with more diverse traffic base as well as more markets in the long run (think grains in the future).
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Heck go really big in your thoughts and pursue CP and then KCS - You now have a network of Canadian & Mexico as well as East Coast container ports & Gulf Coast chemical coast serving Dallas/Forth Worth, Houston, Midwest Cities, Chicago, Northeast Corridor and Atlanta/Southeast directly, no need to interchange or deal with trackage rights. Talk about a long term power play on some well established UP and BNSF western markets whether it be the movement of CBR & grains out of the northern plains, west coast containers via Canada or Mexico (vs. LA/Long Beach, Oakland or Seattle), or Mexico manufactured goods/autos & Gulf Coast.
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I also wonder if NS will now look at KCS and wander if it should try the same thing that happened to them. However, it will have a lot more leverage to make a more appealing offer to buy out KCS shareholder. Would most likely be less complicated with both companies US based. NS would get complete control over the Meridian speedway, direct access to the Gulf Chemical coast, expand its grains reach, and strengthen its auto business by adding Mexico’s auto industry via KCS ownership of rails south of the border.
When one thinks about it, today’s CP is essentially the Soo Line grow large.
Oh no!..I sense ANOTHER Fred Frailey blog post coming
As a shipper; while I could “understand” the logic behind a merger between NS and either BNSF or UP; I continue to believe a combination of CP and NS would create a disproportionate amount of headaches for shippers relative to any meager benefit derived.
And I don’t believe any large rail shipper with a lick of common sense and the ability to see beyond six months, would or should be supportive of any Class 1 merger going forward.
Having experienced every consolidation since 1980; which reduced the industry from 41 Class 1’s to the current 7; none of them have been painless and few of us who have experienced all of them would say shippers have it better now.
Mr, Warfel, You make some very good points from your perspective as a shipper. Thanks !
Mr, Ekren, The problem with your point of view, is a lack of EGO and ARROGANCE on the part of the NEW management at NS, who obviously believes the top priority for them right now is to get their own house in order and lower the operating ratio !
Also, could you please take some time to proof-read your comments before you submit them ? Appreciate it, Thank You !
It seems that the “growing pains” of the 1990’s mega-mergers, and the division of ConRail, have resulted in a fairly balanced railroad system for the U.S. and Canada, at least. There is nothing which CP has proposed in its buyout bid for NS which any two (or more) railroads cannot accomplish through interline agreements, save for EHH’s “precision scheduling” baby - and I’m sure the rail industry is capable of working that out as well. Even though he still wants to talk with NS, it seems that Harrison and Ackman are finally starting to see the light!