This was on MSNBC earlier on the ticker, looks like a good business decision on the surface. Anyone more knowlegable on this, feel free to weigh in.
Knowlegable on what?
The road and its construction, possibilites for profits to the roads involved, and any theory as to how three very different companies could agree to share something. This is especially important when one considers their individual personalities, conflicting histories, competitive reputations and independent natures.
What exactly is happening, do you have a link to the article?
What is happening with all these companies and the D&H?
Link is www.msnbc.com news wireservises from Reuters dated 12:41 ET on todays date, 8 November 2004. Reported from Vancouver, BC.
summary…summary…I’m not lazy, really, but finding old stories on msnbc.com is a adventure for even those with fast internet!
November 8, 2004
CN, CPR and Norfolk Southern Announce Agreement To Improve Freight
Service Between Eastern Canada and the Eastern U.S.
MONTREAL, Nov. 8, 2004 - CN, Canadian Pacific Railway (CPR) and Norfolk
Southern Railway (NSR) today announced an agreement that will
significantly improve freight service between Eastern Canada and the
Eastern United States.
The three-party arrangement will give CN and NSR a seamless, direct
north-south routing over CPR’s lines south of Montreal that will slice
as much as two days’ transit time off some 20,000 annual shipments. It
will also increase freight traffic density and revenues on CPR’s wholly
owned subsidiary, the Delaware and Hudson Railway. Implementation is
scheduled to begin Nov. 19, 2004.
CN-NSR traffic destined for the Eastern U.S. will move in CPR
trains on CPR’s line between Rouses Point, N.Y., and Saratoga Springs,
under a freight haulage arrangement between CPR and NSR. This CN-NSR
traffic will then move in NSR trains over CPR’s line between Saratoga
Springs and the NSR connection near Harrisburg, Pa., under a trackage
rights agreement between CPR and NSR.
The new agreement will cut 330 miles off the current routing used
by CN and NSR, which sees freight traffic handled more circuitously
through the Buffalo, N.Y., gateway.
E. Hunter Harrison, president and chief executive officer of CN,
said: “This three-railroad agreement will benefit both customers and
railroads. First, it will offer CN’s existing merchandise carload
customers in Quebec and the Maritimes quicker access to important
consuming markets in the Eastern United States. And second, it will
enable the participating railroads to improve the utilization of their
networks and locomotive and car fleets.”
David R. Goode, chairman and chief execu
If I understand this correctly, CN is moving all of there NS trains (334-Allentown to Toronto, 335-Toronto to Allentown PA) from their CN Grimsby Subdivision to the CP Hamilton Subdivision? I don’t think that CP line can handle it-the line is single tracked and unless CP plans to put up some passing sidings at least between Hamilton and near Fonthill, ON; I don’t know how well that will work.
The only thing that I see that is attractive to this route is that the CN trains will not need to stop for the Seaway bridges; CP has a tunnel under the canal. Beyond that, 334 and 335 do interchanges at Port Robinson yard on the Stamford Sub enroute to NS Bison yard in Buffalo. Unless a CN local transports the loads to Fort Erie, they will probably bring it to Niagara Falls yard where NS 387? (ex 445-Bison to Niagara Falls turn) will grab them.
Sounds interesting; I look forward to hear more about it.
The D&H main from Albany to Montreal is SOOOO much better than the CSX ex-NYC route via Syracuse, or going the long way around through Buffalo. It’s good to see agreements that allow traffic to move over the shortest, fastest routes. No worry about congestion, CP was trying to find enough traffic to keep the D&H in the black. A recent deal with NS helped a lot. This will help a bit more.
The north end of the D&H is a great ride. If you’ve never taken the Adirondak, you should!
Has CSX done anything like this recently?
The message sounds great. But I have some questions.
What happens at Saratoga Springs? Do the trains simply change engines and engineers or do the railroads expect the trains to be shunted? In the latter case, I see a waste of time and probably money.
Wouldn’t run-thru-trains and engines be a more economical solution?
Probably be run-through at Saratoga Springs, although an engine change is possible; a crew change very likely. Won’t take long. The D&H line is actually not in too bad shape, and was under-utilised. This whole thing strikes me as a truly bright idea…
The article says that the trains will use the CP from Saratoga Springs to the NS connection near Harrisburg. I suppose they mean the connection at Sunbury PA.
Will any of these trains follow the Lehigh line from Scranton to Allentown? I remember that not too long ago, CP was unsatisfied with the condition of the tracks on the part of the Lehigh line owned by Reading & Northern.
I’ve heard dozens of rumors, my best sourse says that 30T/31T will be gone, this new train will run under a new symbol. CN will also be dropped, the new train will run with solid NS black. [xx(] It will also keep running on the RBMN/NS Lehigh Line.
[quote]
QUOTE: Originally posted by Limitedclear
November 8, 2004
CN, CPR and Norfolk Southern Announce Agreement To Improve Freight
Service Between Eastern Canada and the Eastern U.S.
MONTREAL, Nov. 8, 2004 - CN, Canadian Pacific Railway (CPR) and Norfolk
Southern Railway (NSR) today announced an agreement that will
significantly improve freight service between Eastern Canada and the
Eastern United States.
The three-party arrangement will give CN and NSR a seamless, direct
north-south routing over CPR’s lines south of Montreal that will slice
as much as two days’ transit time off some 20,000 annual shipments. It
will also increase freight traffic density and revenues on CPR’s wholly
owned subsidiary, the Delaware and Hudson Railway. Implementation is
scheduled to begin Nov. 19, 2004.
CN-NSR traffic destined for the Eastern U.S. will move in CPR
trains on CPR’s line between Rouses Point, N.Y., and Saratoga Springs,
under a freight haulage arrangement between CPR and NSR. This CN-NSR
traffic will then move in NSR trains over CPR’s line between Saratoga
Springs and the NSR connection near Harrisburg, Pa., under a trackage
rights agreement between CPR and NSR.
The new agreement will cut 330 miles off the current routing used
by CN and NSR, which sees freight traffic handled more circuitously
through the Buffalo, N.Y., gateway.
E. Hunter Harrison, president and chief executive officer of CN,
said: "This three-railroad agreement will benefit both customers and
railroads. First, it will offer CN’s existing merchandise carload
customers in Quebec and the Maritimes quicker access to important
consuming markets in the Eastern United States. And second, it will
enable the participating railroads to improve the utilization of their
networks and locomotive and car
Progress is made, lets hope it holds
It’s just a matter of time before all the railroads operate on all the tracks and it’s just one big network.
Here in the lower mainland of BC it is already like that, CP, CN, BNSF and the SRY all share a whole bunch of trackage.
I still don’t see why CN 335 could make the climb on CP Hamilton Sub if that is what I understand. This train is often 150 cars loaded in most cases with lumber, newsprint, adipic acid, cement, steel coils and plastic pellets. It also hauls sulfuric acid, scrap metal, chlorine, LPG, alumina, grain and sometimes potash.
Thease are heavy commodities and between CP Kinnear Yard in Hamilton and CP Welland Yard, it is quite a climb up the hill. I just don’t see it happening unless CP lets CN use some DPUs between the grade.
Andrew/Junctionfan:
You must have Ontario on the mind. This CN/CP/NS trackage agreement refers to the Montreal/Rouses Point/Saratoga Springs/Albany/Sunbury/Harrisburg corridor ONLY! This traffic won’t even come close to Hamilton or Welland or any other part of Ontario. The whole idea is for traffic originating in Quebec and the Maritimes to have a much faster transit time heading to consumers in the U.S. Mid-Atlantic and Southern states. Hopefully Mr. Harrison will also negotiate a similar agreement for CN/CSX traffic in the “I-87/I-95 corridor” to make use of the CP/D&H trackage from Montreal to Albany!
That makes sense now. I’m assuming its only the cars and not the entire train.