I was surprised and dissapointed to hear Canadian Pacific wants to sell it railroad. The CEO announced that the company is not capable of running many major global companies (eg. shipping, hotels, railroad) and is considering reducing its holdings. And here is a quote from Branchlines Jan 2001 p. 14. "Obrien suggested CP could eventually even get out of the railway business, the backbone of the company for years....railway would have less growth prospects than some of our other businesses'" Obrien feels that a CP/CN merger would give the Canadian people a problem with such a large company. "That's a huge combines or competition issue in Canada." My prediction is that if there is a sell off you will see an aggressive move by Rail America, which has booted BC Rail from third place to fourth place in trackage ownership in Canada. Rail America is now a major player in Canada, and as we speak, I bet there are financial analysts with that railroad looking at the numbers for a buy out. My question is: What do you think?
WOW! When is this going to happen, if it does? CP has tracks through Milwaukee, and I love watching their trains! I can't imagine not seeing CP freights roll through Mil. Will RA by all of CP's tracks(both Canadian and American tracks), or will some other roads buy some of the lines? Who knows, I have so many questions, and I guess only time will tell. ------------------ Drew What's that? A train horn? Sorry, gotta go!
This would be of no big surprise to me, as you should no they sold there entire main line and all there holdings (The Atlantic Divison) from Montreal, QB to St John, NB and the Maritimes about 5 years ago. The two holding companies (1 Canadian & 1 American) that bought it up are now hauling more tonage than the CP ever thought of hauling..... Do you think CP may have some management problems?????????????
According to the CEO, the sale won't happen for some time, but I think the news story is to determine how quickly it will sell. If the Canadian people don't react strongly to the story, I suspect sooner rather than latter, is going to be the scenario. To any Canadians out there, I don't have to tell you this is a piece of real Canadiana happening as the CP line is one of the main events bringing Canada together.
Great, just what this country needs... another monopoly. More skyhigh prices and third-rate service. This sucks. D6
Like almost every where, the railways have lost customers to the trucking business. Both CN and CP lost customer confidence and really never developed a proper marketing plan to change and diversify their operations. A whole study could be done but it is too late for that so this is what Canadians will have to face in the future ------------------ Robin member #35 Maberly and Tayside
Since I don't have any real knowledge of the environment that CP or CN operate under in Canada, I will make just a couple of comments more from a business perspective. <UL TYPE=SQUARE> <LI>As trucking and transportation by air increase, there will be increased pressures on rail transportation business. However, rail service in total is not in real jeopardy, due to the total volume of goods shipped. <LI>A CN/CP merger I think would actually be a pretty good thing. There would surely be some corporate redundancies that would be eliminated, and the two would probably be able to better utilize their lines for more efficient flow of goods. <LI>One could also argue that the combined CN/CP would also be better situated to compete against their American counterparts. [/list] Just my thoughts from a guy who likes the Canadian rail lines. Bry ------------------ Smile! It makes people wonder what you are up to. Bry's Photopoint.com Album
I agree with you Bry. Wheras I would prefer to see both CP and CN continue, if they became one, the new company could concentrate on competing with other modes of transportation, instead of each other. Also rationalisation of trackage could maybe make a leaner, meaner railroad. Although this could also happen through co-operation, as they do in the Rockies. ------------------ Alan Curtis. Moderator. Member #12 The perfect combination - BNSF and N Scale! www.alancurtismodels.com Andersley Western Railroad Alan's American Gallery
From my railfanning experiences in the Fraser Canyon this past summer, and talking to others who have been there more recently, rail traffic (more in lenghts of trains) have increased significantly. The traffic is so heavy the motive power is almost commical. Anything that can pull is being used. Why? Because of the surge in fuel prices. Now it makes more sense for some companies to ship by rail rather than air or truck. Cars through the canyon in one average day has gone up because more are wanting to use the rails. I forget the motive power, but I can recall an incident with an engineer in North Bend (BC). He had just finished his shift and was going for beans when he saw my son and I watching the train pull out. He told us the train would have great difficulty because it was at its maximum tonnage. It took four minutes from when the throttle was first applied, taken up to throttle 8, sanding like crazy before the consist would even budge. It was on throttle 8 for at least a minute before it moved.
If CP and CN were to merge it would NOT be good. It would be less choices for shippers, and costs would go up. If they become one they can charge you more, because what other railroad are you going to use? Now watch me piss everybody off! UP has been looking at CP for a while now, about 5 years. The problem is CP wanted to be the "Railroad in charge" if there was to be a merger. UP is so consident that it was not willing to go for that. This might be UP's chance. I can imagine it now, "Patched" yellow and UP numbers on all the CP engines, I like this idea. Start the attack!
UP had such a horrible horrible horrible (did I say horrible) experience in that last merger (major rail melt down) that if those in power wouldn't agree to a CN/BNSF merger (partially because of the bad taste in their mouth from the UP merger) that I can't possibly imagine them approving a CP/UP merger. Which raises an interesting point, who could buy CP whom the American powers that be would approve it? Again, I am curious as to what Rail America is up to, since they are a major player in Canada now.
Canadian/Union Pacific.. that would be interesting. They'd have a big hub here in Milwaukee. I doubt it though ------------------ Drew What's that? A train horn? Sorry, gotta go!
Now for something different. Yesterday I ssaw three locos pulling a fairly long freight train. The lead and third locos were the usual CN but in the centre was a yellow UP loco. Did they get mixed up and are getting involved in CN instead of CP or do they want both. Just like Wal-Mart trying to dominate the Canadian retail field. Oh well, we are more than neighbours ------------------ Robin member #35 NARA member #2 Maberly and Tayside
