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RUMORS !!!!!!!!! csx / ns / up / bnsf / cp

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Freight railroading today is, by it's very nature, an extremely low profit margin industry (rather like supermarkets); therefore, it is highly improbable that any major railroad would part with a huge chunk of scarce capital (dollars) to just buy ONE mainline segment from another railroad, rather than the much more customary tactic of simply orchestrating an outright merger, which tends to minimize actual cash outlays in favor of a paper (stock) swap among old and new stockholders. <br />Among stock analysts, the much more believable scuttlebutt is to watch for BNSF to finally make a play for KCS within one year of Mike Haverty's finally clearing up the last of the legal and negotiating roadblocks currently delaying the consummation of the KCS + TFM deal. Also look for cash-rich CN to eventually make a play for poorly-managed CSX and to wring much additional profit from same. Within 5 to 10 years after that, look for a reconstituted BNSF + CN merger. Over this same approximate time frame, eventually look for some sort of "domino" mergers between the UP + CP + NS + Guilford + FEC + FerroMex in an order yet to be determined. We will finally wind up with two super-efficient continent wide rail systems that should be able to squeeze their operating ratios down to around 45 to 50 percent, and FINALLY earn the cost of capital needed to maintain their respective infrastructures, WITHOUT having to cannibalize themselves (such as the old SP, Rock Island, Milwaukee Road, and PennCentral systems). Wall Street is definitely pushing HARD for this sort of scenario to happen! <br /> <br />Sincerely, Ross R. Moore, Jr.
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