RIP, Alberta shortlines

Well, now that the deal is pretty much closed that CN is buying ANR, that means that there are no longer any shortlines in Alberta. Here is a short list of recent losses.

The Athabasca Northern Railway, obviously. Going to CN as said in this article: http://www.cn.ca/about/media/news_releases/2007/4th_quarter/en_News20071224.shtml

Central Western Railway. Went to CN in January 2006.

Lakeland & Waterways Railway. Went to CN, January 2006.

MacKenzie Northern Railway. Went to CN, January 2006.

Savage Alberta Railway. Went to CN, December 2006.

And who could forget the Northern Alberta Railway. Went to CN, 1981.

…Anybody noticing a pattern here?

Derailments are up in Alberta?

Other than CN buying back what it had previously sold off?

RWM

What’s the background of CN buying back shortlines it previously sold off? What has changed that would make CN want them back?

Murphy, one word:
Oilsands.

All four?

Matt, look at the bright side. ANR was probably a goner, maybe within the coming year. Now it has a new lease on life, with upgraded rail, new business and expanded operations. I know CN seems to be gobbling up the whole civilized world, or at least your corner of it, but that may be better than the alternative. Besides, when you get tired of all the red CPs, you will be able to go out and find some red CNs! [:P]

Tim

Murph, the Lakeland & Waterways Railway and Athabasca Northern Railway are in northeast Alberta, and reach up to the oil sands. Savage Alberta Railway was in northwest Alberta, coal and wood pulp territory. The MacKenzie Northern Railway runs up to the Northwest Territories, where mining and gas drilling is happening. It is likely the construction of the Mackenzie Valley gas pipeline will create a lot of traffic as well.

Alberta Rail Map

Dale: thanks for the map, that lays it out a little better in my mind. If all 4 of these are former CN lines, why the push to get them back in the CN fold? It sure looks like CN was going to get most of the traffic that came off the lines anyway. Does Canada allow the paper barrier type of agreements, that would obligate a spin off short line to only interchage with the railroad that spun it off?

Hunter Harrison (probably) believes CN will merge with UP, BNSF, NS or CSX in the future, all of which are larger than CN at this time. He is trying to grow CN so it will be on an equal footing if one of these mergers happens.

The Athabasca Northern Railway has not been able to maintain their track at current traffic levels. CN can bring the line up to standard, and has agreements worked out with shipers to increase the traffic.

I don’t believe the paper barriers are allowed up here, but that is over my head.

Sounds like CN is taking a page out of UP’s book and becoming Borg of the North.