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UP’s Koraleski “not convinced” mergers will resolve service issues
It is my understanding that both NS & CSX interchange more traffic with UP than with BNSF. Therefore if UP & BNSF each merge with an eastern carrier, it will be a net loss of traffic for UP. It is in UPs interest to maintain the status quo.
Key part is "we work really hard with Interline Partners:, but the Interline Partners have to work as hard, if not harder. Chicago is still an issue, always has been. Traffic in Chicago will continue to increase, the demand for passenger, commuter passenger, as well as high speed freight (Intermodal), and oil trains, coal trains, and manifest freight grows. Alternate routes close but around to Chicago must be expanded for greater fluidity, cooperation, and physical plant. The EJ&E is the key. Moving the problem to St. Louis or KC is not the answer. Building a new private railroad to bypass Chicago might work but the Class One’s would have to buy in, and I do not think that would happen.
Remember the meltdown that happened when UP absorbed C&NW? And how it was a practice meltdown for UP + SP? Remember what happened when NS and CSX split Conrail and merged its parts into their system? If Barclays Capital’s Brandon Oglenski thinks a merger will solve service issues, methinks he was sleeping through his Due Diligence classes.
Bill, amen to that, brother.