UP Proposes to streamline border crossing

I guess I don’t understand the history here but to me the whole concept of changing train crews in the middle of a train trestle, where the relief crew has to walk out onto the trestle to change, seems a little strange to me how that ever got started in the first place.

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Because train crews have to be qualified and authorized to operate a train in another sovereign nation under that other nation’s laws and regulations. And at the US-Mexican border there is a very significant language barrier. Changing out crews at the international border was the easiest, if not the most efficient, way of dealing with all this.

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Just a difference between Mexico and Canada.

In times before the current political climate - US crews on US trains operated to points in Canada and return.

I suspect - before the current political climate amenable crew changes existed between US and Mexican carriers.

The present political climate is toxic for international operations.

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Sounds like a mess that needs to be fixed. USMCA should in my view smooth border crossing. I see the Canadians had to spring $5 Billion for the Gordie Howie bridge to Detroit to get better fluidity between Canada and United States for auto parts. So might not be a focus of the US but it should be.

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I dunno. CPKC has “international” crews at Laredo. KCS implemented them back in 2018. I suspect that UP will eventually be successful in Eagle Pass. There’s just a lot of FRA, union, and customs agreements that need to be worked out to make it happen. Eliminating long train stops right at the international border probably facilitates better border security.

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Helps if you also own the Mexican carrier and can set and enforce standards…

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Indeed. That’s CPKC’s big advantage - for now. Keith Creel better squirrel away billions (and billions) of dollars to outbid UP and/or BNSF when the concession ends.

UP does own something like 25% of Ferromex. They can influence things south of the border too.

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Canada had to finance the bridge alone, because the owner of the Ambassador Bridge and Windsor Tunnel (the only other road connections between Detroit and Canada) gave the Michigan Senate majority leader a hefty campaign contribution, who then killed the appropriation bill.

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Matty Maroun was scum of the earth. Nobody in Michigan mourned him when he died. He’s also the one who bought the Michigan Central Station, let it rot, ignored court orders and then made money selling it to Ford. Michigan has had some good/great business leaders who gave back to the community (Fords, Illitches, Gilbert, etc.) and then you had the bloodsucking scum named Maroun.

The railroad also put the Detroit River rail tunnels up for sale. Some politicians suggested one of the two tunnels could be converted to roadway so more trucks could cross the busy border. Matty Maroun bought the tunnel to protect his monopoly on the international river crossings. The Michigan Central Station was part of the deal. Maroun sold the tunnels to IIRC an Ontario pension fund with the condition that they would not be converted to highway use.

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US and Canadian crews have been crossing the border for a long time. The difference, IMO, is that the respective crews are more or less equals. It doesn’t save much money on using either crew. It’s like UP and BNSF interchanging at major points, who’s crew mans the transfer train.

On the southern border, it’s not a question of equals. Mexican crews aren’t paid what the US crews are making. (Years ago, when US railroads first became involved in Mexico, an unnamed US railroad senior official said doing business in Mexico was great. They dealt with US companies, could charge US level freight rates, but pay Mexican wage rates.) Letting Mexican crews (or truck drivers as proposed at times) come into the US is purely to move work from US workers to Mexican workers.

The move eliminates UP jobs. It may not have an immediate impact on staffing levels, no one may get furloughed immediately. It could mean someone may have to work 100 or more miles at a different terminal.

When they say it’s not about money, it’s about money. Vena was supposed to have the stock price at $400 a share by now. The activist group that brought him in said so.

Jeff

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So the issue is no equalization has taken place South of the Border in regards to pay, standards or training. Which is something the USMCA should be addressing. The long-term goal of the USMCA should be a common market type arrangement, in my view. A lot of work needs to be done there though. Road signs need to be standardized, Metric system adopted, etc. Between the three countries. Regardless of all that. The border crossings to either country as a general rule are pretty horrendous and impede the smooth flow of commerce.

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