I just read on Steam Central that Wisconsin Central and Canadian National may merge, spelling the end of steam trips on the WC and Land Locking several museums. Anyone have an update on this?
The "merger" of CN and WC is no longer "news", have been announced some time ago. In 1999, the stockholders ousted Ed Burkhardt, the founder of WC, in hopes the stock would go up in price. Late last year, Burkhardt mounted a proxy fight to regain control. He lost, but since the stock never went up, they shopped the railroad and CN bought. I think it's a bit premature to talk about "landlocking" museums.
Ironic, the WC was basically a bunch of unprofitable lines the SOO(CP) spun off... Now CN has got them.
<BLOCKQUOTE>quote:</font><HR>Originally posted by rsn48: My question still stands...what happens to lines in Australia ?<HR></BLOCKQUOTE> I would love to move there , take my seniority down under , I wonder if they have OutBack Steak House down there ???
Dave, From what I understand they wish to divest themselves of all foreign lines. If they don't, the problem facing you would be them proving you are needed here in order to have a working visa issued. Works the same as Canada and the US does in this regard. Seniority would probably not be carried over - I don't think our systems run the same seniority-based job bidding you do. As for Outback, the only Outback we have here is the real thing and Subarus. But we do have Lone Star steakhouses, though! Gary.
Good article in www.trains.com on the WC/CN merger including what equipment CN intends to keep and trash...check it out.
It is most unfortunate that CN still has not learned a lesson from the IC takeover - one of WC's strengths is the accessibility of its marketing people and their willingness to work hard to secure the customers traffic. Trying to deal with CN's marketing department is an experience most customers are not willing to tolerate. Not only does it take half a day to find the person responsible for the commodity, but often then the person one gets is far more fluent in French than English. One notes that the other Canadian railroad moved its marketing headquarters to Calgary. English and indeed Spanish speakers far outnumber Francophones, except on CN.
<BLOCKQUOTE>quote:</font><HR>Originally posted by Gregg Mahlkov: It is most unfortunate that CN still has not learned a lesson from the IC takeover - one of WC's strengths is the accessibility of its marketing people and their willingness to work hard to secure the customers traffic. Trying to deal with CN's marketing department is an experience most customers are not willing to tolerate. Not only does it take half a day to find the person responsible for the commodity, but often then the person one gets is far more fluent in French than English. One notes that the other Canadian railroad moved its marketing headquarters to Calgary. English and indeed Spanish speakers far outnumber Francophones, except on CN. <HR></BLOCKQUOTE>Oh boy , I won't even comment on this man No Commento
Some interesting reading CN keeps on track despite stock slowdown TORONTO -- The Dow Jones transportation index, legend has it, was created nearly a century ago to give investors an indication of where the broader market was headed, the Globe and Mail reports. Railways, in particular, are seen as early cycle stocks because information about carload volume is available weeks before sales data for the goods being shipped. But don't look to railway stocks this time around to figure out when the economy will wake from its current slumber. That's because rail stocks never really went to sleep. Montreal-based Canadian National Railway Co., in particular, has been behaving like a bull despite the general bear market. The stock is trading near its all-time high, up 33 per cent in the early year. It closed down 44 cents yesterday at $59 on the Toronto Stock Exchange. James Valentine, an analyst with Morgan Stanley Dean Witter & Co. in New York, said investors have held on to their railway shares, despite selling off most other so-called Old Economy stocks. "The question is, do they finally get around to picking off the [railways] or do they say these are fairly stable companies even in a slowdown?" asked Mr. Valentine, who has an "outperform" rating on CN shares. While he won't guess what investors will do, Mr. Valentine said he thinks the time is right to buy CN shares even though the stock, which trades at almost 11 times earnings, is no longer considered a cheap relative to other major North American railways. Mr. Valentine said CN is finally getting the valuation it deserves as the best-run and most efficient railway on the continent. He said CN's valuation is still attractive because railways are likely to show accelerated earnings growth coming out of a downturn. "It's my favourite name in the rail industry. My mantra has always been if you're going to own a [railway], make it Canadian National. It's the best-run, with the best returns. It has the best future prospects." But Doron Daniels, an analyst with Scotia Capital in Toronto, downgraded CN shares to a "hold" recommendation last week because the stock has become so pricey. Mr. Daniels said the economic slowdown will have an impact on the company's earnings going forward. CN shares have fallen slightly since Mr. Daniels' downgrade. So why has the stock done so well in recent months against the backdrop of a slowing economy and soaring fuel prices? Winnie Siu, an analyst with Salman Partners in Vancouver, said railway stocks in general have been performing well as investors look for safe places to put their money. She said further interest rate cuts will continue to help CN. "Fundamentally, CN is still very good. You might see some weakening of some revenue going forward because of the softening of the economy," Ms. Siu said. "But they are still a very well-run company and I think they will still try to offset lower revenue with other measures." Like most other major railways, CN has raised its prices to offset the increase in fuel costs. And unlike companies in many other industries, railway companies have not had to give profit warnings -- partly because they are benefiting as power producers switch back to coal because of soaring natural gas prices. Gary Yablon, an analyst with Credit Suisse First Boston, issued a report recently stating that he thinks the coal inventory restocking, which has been benefiting railways, will continue through the balance of 2001. "While we are not making across-the-board [profit] estimate increases, we do see this as offering another level of cushion in a market where most other companies are preannouncing earnings shortfalls," Mr. Yablon wrote. While CN does not ship as much coal as many of its competitors, the increase in coal shipments will still help to offset a decline in other revenue. CN shares have also benefited from its pending merger with Wisconsin Central Transportation Corp. of Chicago. The deal, which is still subject to regulatory approval, would give CN about 3,500 kilometres of track, including an important missing link between Chicago and Western Canada. CN said it expects to realize $60-million (U.S.) in annual synergies from the merger. Last year, U.S. regulators effectively killed a proposed $6-billion merger between CN and Burlington Northern Santa Fe Corp. of Fort Worth, Tex., out of concerns that it would force another round of rail mergers that would result in just two major railways in the continent. The U.S. Surface Transportation Board also imposed a 15-month moratorium on any mergers between major railways. With the moratorium set to expire in June, all eyes are back on CN to see if it will again try to merge with a major U.S. railway. But Credit Suisse's Mr. Yablon said the tough new merger rules proposed by the STB present such big hurdles that it could be two to three years before any railways are willing to attempt another transcontinental merger. Mr. Yablon said this is good news for investors, since the last round of rail mergers hurt the bottom line of many railways. One notable exception was the 1999 merger of CN with Illinois Central Corp., which is generally seen as successful. Bottom Line:CN shares are up almost one-third this year, despite higher fuel prices and a slowing economy. One analyst says the railway is finally getting the valuation it deserves; another says the stock is too pricey in the current economic climate. [ 14 April 2001: Message edited by: Davecn5623 ]
The CN-WC combination would be a natural fit for CN & WC , and end to end combination , that if approved by the STB , it will secure CN's North American network . That transaction made good business sense for both CN & WC . WC management needed a strong financial partner . For CN , CN gains operational control over a IMPORTANT growth corridor and the deal will increase CN's overall company revenues by 10% . It will also benefit the customers , the refined operations will give unique service plans to the customers , more options . The CN IC merger is a success story , don't forget I work for CN , I know . During the merger I was assigned to Chicago for a few months and I was seeing it happen first hand . The changeover proceeded efficiently and effictively without the kinds of disruptions that have plagued mergers between other carriers , we know who those carriers are The CN IC merger has actually went beyond the STB's expectations , reduced transit times , more customers , no labor uprooting or problems . CN's stocks are up and are crushing the competition in a time where the economy is going down the drain . I dunno , I am not a business man , I'm a blue collar Locomotive Engineer slash Conductor , I call it the way I see it and read it and see things from my travels at work EVERYDAY . You hear of these other carriers who are in the red when it comes to quarterly earnings , but not CN . CN is making money . CN is not laying people off and getting rid of and cleaning house like NS is . That enough should say something . CN is actually hiring people due to the increase and business and lack of people to cover it . As one trainmaster has said , CN is stealing CSX's and NS's business around the Great Lakes area and into some places in Canada . [ 15 April 2001: Message edited by: Davecn5623 ]
Hello All, Where can I find more information about this, I am thinking about becoming a dispatcher and I was debating on maybe moving to England, since the WC owns interests in some of UKs railroads and was wondering what will happen to them. Thanks or E-mail me at bn9900@hotmail.com. Thanks a bunch.
BN9900, you don't want to have anything to do with British railways right now! The WC owns English, Welsh & Scottish, which is the major freight operator. But, in the UK, the track is owned by Railtrack, freight is run by EW&S, the passenger cars are owned by leasing companies, and the passenger trains are run by 30 or so TOC's (Train Operating Companies). Sooo, the poor dispatcher, working for Railtrack, has to dispatch trains for perhaps a half dozen or more operators on a system that suffers badly from lack of maintenance. Does not sound like a great job opportunity to me.
Latest STB memo; Surface Transportation Board (Board) Chairman Linda J. Morgan announced today that the Board has accepted for consideration the railroad control application filed with the Board on April 9, 2001, by the Canadian National Railway Company, Grand Trunk Corporation, and WC Merger Sub, Inc. (collectively referred to as "CN"), and Wisconsin Central Transportation Corporation, Wisconsin Central Ltd., Fox Valley & Western Ltd., Sault Ste. Marie Bridge Company, and Wisconsin Chicago Link Ltd. (collectively referred to as "WC;" CN and WC are referred to collectively as the "applicants"). Chairman Morgan also announced that the Board has issued a procedural schedule providing for the issuance of the Board's final decision no later than September 7, 2001, or 5 months after the April 9 filing of CN-WC's merger application, unless the Board determines that an Environmental Assessment or Environmental Impact Statement is required or that an oral argument will be held. CN operates a rail network consisting of 3,912 route miles in 14 states in the United States, and 11,620 route miles in eight Canadian provinces. WC operates over 2,464 route miles in Wisconsin, Minnesota, Northeastern Illinois, and the Upper Peninsula of Michigan, and over 296 route miles in the Province of Ontario. The principal routes of the combined CN-WC rail system would be identical to those now operated by CN and WC, respectively, with the addition of through routes where interchange or haulage is now required. CN's traffic, between Duluth, MN/Superior, WI, and Chicago, IL, is carried under haulage agreements over WC's lines. Major interchange locations on WC's routes are Chicago, Superior, Minneapolis/St. Paul, MN, and Sault Ste. Marie, ON. The applicants have stated that no track redundancies would be created by the proposed merger, and that no rail-line abandonments would result from the combination of the two systems. The Board accepted the merger application, determined the proposed transaction to be a "minor transaction" under 49 CFR 1180.2(c), and found that the application complies with applicable regulations and other requirements. The Board also has considered the applicants' April 9 petition for a scheduling order. With a modification to provide additional time for public comments, the Board is adopting the applicants' proposed procedural schedule (which, as modified, would result in a decision being issued approximately 28 days prior to the statutory deadline, assuming that no oral argument is held and no unanticipated environmental review is required). The Board's schedule provides for the issuance of a final decision no later than 45 days after the close of the public record. A copy of the schedule is attached. The Board accepted the CN-WC merger application today in the case entitled Canadian National Railway Company, Grand Trunk Corporation, and WC Merger Sub, Inc.--Control--Wisconsin Central Transportation Corporation, Wisconsin Central Ltd., Fox Valley & Western Ltd., Sault Ste. Marie Bridge Company, and Wisconsin Chicago Link Ltd., STB Finance Docket No. 34000, Decision No. 2. A printed copy of the decision is available for a fee by contacting D~-To-D~ Office Solutions, Room 405, 1925 K Street, NW, Washington, DC 20006, telephone (202) 756-1649, or via Da_To_Da@Hotmail.com. The decision also is available for viewing and downloading via the Board's Website at www.stb.dot.gov. ### ATTACHMENT Attachment Procedural Schedule STB Finance Docket No. 34000 "Canadian National-Wisconsin Central" Merger Date / Material Due or Action Taken April 9, 2001 - Applicants' merger application and Petition for Scheduling Order filed with Board. May 9, 2001 - Board's notice of acceptance of application published in the Federal Register. May 9, 2001 - Applicants' Safety Integration Plan (SIP) due. May 14, 2001 - Applicants' distribution of Environmental Appendix and SIP to public and initiation of publication of newspaper notices due. May 25, 2001 - Notification to Board of persons' or parties' intent to participate in the merger case due. June 13, 2001 - All comments on Environmental Appendix and SIP due. June 25, 2001 - All comments, protests, requests for conditions to be applied to the merger, and other opposition evidence and argument due, including filings of the U.S. Department of Justice (DOJ) and U.S. Department of Transportation (DOT). July 25, 2001 - Response to DOJ and DOT comments, other comments, protests, requested conditions, and other opposition due; and rebuttal in support of the application due (conclusion of the public record). September 7, 2001 - Board issues a written decision (if there is no Environmental Assessment or Environmental Impact Statement required and there is no oral argument). End message. Gary.
