CN acquires former NYC tracks

BoxcabE50 Aug 30, 2019

  1. BoxcabE50

    BoxcabE50 Staff Member TrainBoard Supporter

    59,898
    4,441
    600
  2. Hardcoaler

    Hardcoaler TrainBoard Member

    4,132
    6,112
    77
    Thanks for the post Box. Interesting. Looking at maps, the acquisition looks to give CN much better penetration into U.S. eastern markets with direct connection with CSXT's former NYC main. CSX gains cash and hopefully more tonnage to and from the Montreal metro area.

    Not coincidentally, there's a story from three weeks before that CN and CSX will combine on a new intermodal service between Montreal and northern Atlantic ports served by CSX.
     
  3. mmi16

    mmi16 TrainBoard Member

    232
    78
    18
    Mantle Ridge increasing 'share holder' value - selling off the property, a line at a time. What will they do when there is no more property left to sell?
     
  4. BoxcabE50

    BoxcabE50 Staff Member TrainBoard Supporter

    59,898
    4,441
    600
    They will find another victim.
     
  5. Hardcoaler

    Hardcoaler TrainBoard Member

    4,132
    6,112
    77
    At least the transaction serves to maintain rail tonnage and hopefully expand it. CN studied the acquisition and paid for it, so has a return on its investment in mind. No doubt that CSX shareholders large and small have done well in the last 5 Years. By comparison, the S&P 500 is up 49% over the period.
    upload_2019-9-12_9-55-38.png
     
  6. BoxcabE50

    BoxcabE50 Staff Member TrainBoard Supporter

    59,898
    4,441
    600
    I always think of such "strategy" as being akin to your doctor ordering you to lose weight, to vastly improve your health. So you cut off your arms and legs.
     
    acptulsa, Kurt Moose and Hardcoaler like this.
  7. Hardcoaler

    Hardcoaler TrainBoard Member

    4,132
    6,112
    77
    :D Hard to argue with that conclusion!
     
  8. mmi16

    mmi16 TrainBoard Member

    232
    78
    18
    Nailed It!. Mantle Ridge doesn't care about CSX as a ongoing business - just the monies that can be liberated from the treasury.
     
  9. Hardcoaler

    Hardcoaler TrainBoard Member

    4,132
    6,112
    77
    Just read some cool news that both CSX and NS have committed to provide 3 Day intermodal service from the Port of Savannah to Chicago. At roughly 1000 to 1200 Miles by rail, that's good service if it's run with reliability. (Calculating average MPH in rail service always brings a feeble result because trains are worked in intermediate yards en-route.) Kind of neat that CSX and NS will compete toe-to-toe in the service. I'm guessing that CSX's route miles will be a bit less, but I'm not at all sure.

    The Port of Savannah is handling record container volumes and this is a valuable lane it seems.
     
    Kurt Moose likes this.
  10. Hardcoaler

    Hardcoaler TrainBoard Member

    4,132
    6,112
    77
    I see that NS has just added Claude Mongeau to it's Board. He's 57 and a former CN CEO, with CN for 22 years.

    I'm pleased with the appointment. I see too many companies with expansive Boards filled with odd members with no related business experience. However, I do question why Daniel Carp is on NS's Board, a former CEO of Eastman Kodak. He rode herd as Kodak declined from a market leader into ruin. I'm sure he's an intelligent fellow, but I'm uncertain what expertise he contributes to running a railroad.
     

Share This Page