The future for UP

Colonel May 13, 2001

  1. Colonel

    Colonel Staff Member TrainBoard Supporter

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    What does everyone see as the future for UP. Do you think UP will merge with CP or will UP try and take over an Eastern Railroad to make it a true National Railroad coast to coast?
     
  2. esprrfan

    esprrfan TrainBoard Member

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    How about this UP goes with CSX, which leads to BNSF+NS. The because of the ties with CN the new BNSF/NS link with CN, which ofcourse CP joins UP/CSX which should invite KCS to join. Then there will only be 2 RRs and once everythings re#d and painted railfanning will become boring.
     
  3. Kevin Stevens

    Kevin Stevens TrainBoard Supporter

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    While I have no idea about what the future will hold for UP or any other railroad for that matter, I have an opinion. I tend to look "outside of the box" on the issue of mergers. While some people see more mega-mergers in the future, I think we may have seen the last of them. The STB seems to be leaning farther toward the old views of the ICC, while still allowing railroads to operate with less regulation than in the 1980's and earlier. I think the future of class one railroading will be operating alliances, like the one CN and BNSF are tinkering with. As for UP, I look for them to build alliances with either NS or CSX allowing for more seamless transcontinental operations without the management headaches of a transcontinental operating plant. For a wild card, maybe acquisition of KCS, similar to CN's acquisition of WC.

    Just one observer's humble opinion served up for entertainment purposes only :D ;) :cool:

    P.S. Even if a merger is in the UP's future, don't expect the new company to be called NSUP or CSUPX. If past future holds true, the company will be "Union Pacific" as it has been through the preceding mergers. Union Pacific prides itself as one of the longest standing railroad companies in the US, and if I am not mistaken only the Delaware and Hudson has been in continuous operation longer. No matter what the merger, Armour Yellow and Harbor Mist Gray will likely prevail...ask ex-WP/MP/CNW/SP employees that have been assimilated by the "Yellow Borg".

    [ 14 May 2001: Message edited by: Kevin Stevens ]
     
  4. Alan

    Alan Staff Member TrainBoard Supporter

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    Sound thinking, Kevin.
     
  5. Colonel

    Colonel Staff Member TrainBoard Supporter

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    OK what you said sound feasable kevin, now what about open access (maybe i should start a new topic)

    What if the United States went the way most of the western world has gone with open access to all operators?

    Could it be viable that all infrastructure was signed over to a seperate company then all operators used access on the system?
     
  6. Kevin Stevens

    Kevin Stevens TrainBoard Supporter

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    I doubt that there will ever be European-style open access in North America. The closest will probably be the current overhead trackage rights agreements allowing railroads access to businesses served only by a rival railroad. There are several reasons that open access will probably not catch on over here, here are the biggest two in my opinion:

    1. Diversity and volume of territory.
    North America includes hundreds of thousands of square miles of land, with diverse population density and resources. This is especially true in the West, which allows for multiple access routes to the same location. The closest things we have to open access have either been divested (Conrail) or are headed toward dissolution (Amtrak).

    2. Differences in operating style.
    As you may have noticed in a recent heated discussion about Railroad Management, the styles and practices vary between the different corporations. While one values capacity and physical plant improvements, the other prefers deferred maintenance. In an open access environment, I would assume that the common arguement would be "who pays for what".

    The factor are complicated enough to fill page after page, so I tried to editorialize. As noted before, these are semi-uneducated observations. I have been known to be completely wrong (just ask my wife) :confused: [​IMG]
     

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