The latest on bidding for KCS

BoxcabE50 Aug 10, 2021

  1. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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  2. sd90ns

    sd90ns TrainBoard Member

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    I've asked this before and have received no real answer; how is it that Canadian railroads have so much penetration into U.S. markets while U.S. railroads have virtually none in Canada?
     
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  3. MRLdave

    MRLdave TrainBoard Member

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    The 2 primary Canadian Railroads CN and CP are both going strong, and there would be little to gain for a US railroad to buy into any smaller roads. On the other hand, there have been many US railroads that have been up for grabs and the Canadian roads have used that to expand their territory.
     
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  4. HemiAdda2d

    HemiAdda2d Staff Member TrainBoard Supporter

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    Interesting how CP isn't even matching the CN offer. I get that CP doesn't have the deep pockets CN does, and does not wish to start a bidding war (a' la eBay), but I hope the STB agrees that KCS/CN is not what's best for either country.
     
  5. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    The whole thing should be rejected by the STB, et al. We are down to a mere hand full of Class One companies. I keep wondering when and how the old laws on monopolies simply melted away. Competition among these outfits, for your business via rails? Today it essentially is gone at this level. We have created miles and miles of trails, and hoards of trucks. Unless it is an easy cherry for them to pick, forget wanting a Class One to be a part of it.

    Some salvation exists in the Class Two and Three companies created or spun off. Many of these actually do what the Class One companies no longer do- actively work to attract shippers.
     
  6. HemiAdda2d

    HemiAdda2d Staff Member TrainBoard Supporter

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    Good point--class 1s are more interested in picking up a loaded unit train somewhere, taking it to destination and little more. Carload business on class 1s beyond the major terminals is drying up, and they aren't doing much to retain the business they do have. It's sad, but the operations on the Northgate Branch in ND, at least until the Niobe elevator shut down, were carload based and the RR performed switching to the elevator's personalized needs. With the only shipper for the branch now at Northgate, carload business exists, but since it's loaded north of the border, and there's no Canadian rail connection, it's all transloaded from trucks. My gut feeling is BNSF doesn't do the work except grab loads and drop off empties. The Northgate terminal is also a unit train origin, furthering my earlier point.
     
  7. Hardcoaler

    Hardcoaler TrainBoard Member

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    I read that CP hopes its bid shortfall will be overlooked if shareholders realize that ownership by CP will likely receive less scrutiny and delay by the STB. I think CN is paying too much and will face an uphill battle with the STB, resulting in give-backs (such as trackage rights and line sales) to retain competition. We'll see I guess ......
     
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  8. sd90ns

    sd90ns TrainBoard Member

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    Be it CP or CN, if either gets its hands on KCS we will have a "Nation Divided".
    That's right people, the United States will be cut in half with Canadian owned rails being the division point.
     
  9. sidney

    sidney TrainBoard Member

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    like everything else now a days POLITICALLY run we the people simply are disposable pawns end of story.........:mad:
     
  10. Philip H

    Philip H TrainBoard Member

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    This is one of the big concerns. CN and KCS both serve Baton Rouge and points south - who gets to keep their line and who doesn't? Whose yard remains open and whose gets shuttered? And that's not the only place this could happen in a joined system.
     
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  11. mmi16

    mmi16 TrainBoard Member

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    My 'feeling' is that CN may have the superior 'bid', however, the STB will knock down the CN-KS as being anticompetitive with CN already have the N-S franchise in middle America.
     
  12. HemiAdda2d

    HemiAdda2d Staff Member TrainBoard Supporter

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  13. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    Word is the STB has unanimously voted to deny CN's latest request, for putting KCS into a trust.
     
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  14. Hytec

    Hytec TrainBoard Member

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    WOW!
     
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  15. Hardcoaler

    Hardcoaler TrainBoard Member

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    CN's Board of Directors should get a clue and ditch their plans to take KCS. News of the STB's ruling resulted in CN's shares moving up 8% today. CN's shares have been clobbered for months ever since this nonsense surfaced. Likewise, CP's shares fell 4-1/2% today as their debt will climb if the CP plan prevails. KCS's shares also fell 4-1/2% today, indicating that bidding insanity has reached its limit.
     
    Last edited: Aug 31, 2021
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  16. Philip H

    Philip H TrainBoard Member

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    There's reporting that the #2 institutional investor in CN by volume of shares owned is publicly calling for the removal of the CN leadership by the board. This is going to get a tad ugly . . .
     
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  17. Hardcoaler

    Hardcoaler TrainBoard Member

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    Glad to hear it. I own a handful of CN shares (I owned IC and found my way into CN upon IC's demise) and would fully support that.
     
  18. HemiAdda2d

    HemiAdda2d Staff Member TrainBoard Supporter

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    In light of this most recent news, will/should CP move forward with the merger?
     
  19. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    Very interesting! If true this could be a story to follow by itself.
     
  20. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    I hope not. :(
     

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