This agreement has been in the works for awhile, probably before CP started courting CSX then NS.
Stratetically it fits quite well for both. NS has a challenge with it's Chicago - Boston intermodal and while this doesnt place them in Boston, the deal situates them in Albany, one less segment of line not under their control. Will they purchase Pan American? Probably not, but they will possibly continue to invest in the Boston line in order to upgrade it. The majority of intermodal freight NS handles for Boston seems to be JBH and containers while CSX handles the UPS and timely freight. There is no way NS can compete Chicago - Boston on time....just slow it down and add an extra day and handle volume.
Ed
This deal was in the works (and almost happened) just before the activist investors swooped down on CP. At the time all of the D&H was on the block; the southern end would go to NS and the northern end was up for bid. This was before oil became a big deal. Now it will be just the southern half going to NS.
As for NS competing in the New England to Chicago market, why not? EL-NYNH&H gave the NYC a run for their money.
Editor Emeritus, This Week at Amtrak
Oh, NS competes, just not on a timely basis. NS runs 2 intermodals each way and those JB Hunt containers make a very impressive site. It is just not very efficient or fast.
ed
I hope NS will also be painting an ES44AC or SD70ACe as a D&H heritage unit too:)
Lyon_Wonder I hope NS will also be painting an ES44AC or SD70ACe as a D&H heritage unit too:)
D.CarletonIt would be like painting your locomotive in Union Pacific colors and lettering and running it as your own.
Like Canadian Pacific did, in a sense, at one time? ;-}
http://www.rrpicturearchives.net/pictures%5C35464%5CCP%206034.JPG
Colors and number lettering, anyway...
Overmod D.Carleton It would be like painting your locomotive in Union Pacific colors and lettering and running it as your own. Like Canadian Pacific did, in a sense, at one time? ;-} http://www.rrpicturearchives.net/pictures%5C35464%5CCP%206034.JPG Colors and number lettering, anyway...
D.Carleton It would be like painting your locomotive in Union Pacific colors and lettering and running it as your own.
D.Carleton Overmod D.Carleton It would be like painting your locomotive in Union Pacific colors and lettering and running it as your own. Like Canadian Pacific did, in a sense, at one time? ;-} http://www.rrpicturearchives.net/pictures%5C35464%5CCP%206034.JPG Colors and number lettering, anyway... Or FEC for that matter: http://www.railpictures.net/viewphoto.php?id=501743&nseq=12
Or FEC for that matter: http://www.railpictures.net/viewphoto.php?id=501743&nseq=12
FEC bought those locomotives from UP. They had been repainted fairly recently, the paint was in good condition, so FEC slapped its name on them and called it good.
D.Carleton Lyon_Wonder I hope NS will also be painting an ES44AC or SD70ACe as a D&H heritage unit too:) I'm not so sure that's possible. Even after this transaction the Delaware & Hudson will still exist, on paper, as a Canadian Pacific subsidiary. It would be like painting your locomotive in Union Pacific colors and lettering and running it as your own. Uncle Pete may have a word or two to say about that.
I'm not so sure that's possible. Even after this transaction the Delaware & Hudson will still exist, on paper, as a Canadian Pacific subsidiary. It would be like painting your locomotive in Union Pacific colors and lettering and running it as your own. Uncle Pete may have a word or two to say about that.
NS bought about half of Conrail, about half of which were old NYC lines. CSX still uses NYC reporting marks, yet NS has painted Conrail and NYC heritage units.
MP173 [snipped - PDN] . . . Stratetically it fits quite well for both. NS has a challenge with it's Chicago - Boston intermodal and while this doesnt place them in Boston, the deal situates them in Albany, one less segment of line not under their control. Will they purchase Pan American? Probably not, but they will possibly continue to invest in the Boston line in order to upgrade it. The majority of intermodal freight NS handles for Boston seems to be JBH and containers while CSX handles the UPS and timely freight. There is no way NS can compete Chicago - Boston on time....just slow it down and add an extra day and handle volume. Ed
Seems to me this improves the routing for traffic from anyplace in the Southeastern US (from the Panama Canal ?) to New England and Boston, as much as from Chicago.
Will this have any effect on NS' Southern Tier (of New York) line ? (ex-Erie, I think ?) Specifically, avoid the need to rebuild the Portageville Trestle, even with government financial aid ? Instead, just abandon or downgrade/ sever that route to avoid the cost, and run northeasterly from Harrisburg, PA instead ?
- Paul North.
I think the new Portageville bridge project is already well underway. Also, the story said CP will still be able to reach Buffalo after the sale, which seems to imply they'll continue to run trains via the Southern Tier.
The big question around here (Binghamton area) is, will NS move everything to the old Lackawanna yard in Conklin, or will they maintain some facilities in downtown Binghamton in the old Erie yard?
Uncle_BobAlso, the story said CP will still be able to reach Buffalo after the sale, which seems to imply they'll continue to run trains via the Southern Tier.
I think that means they can get to customers on the US side at Buffalo via Niagara Fall, not the Tier.
-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/)
MidlandMike NS bought about half of Conrail, about half of which were old NYC lines. CSX still uses NYC reporting marks, yet NS has painted Conrail and NYC heritage units.
Paul_D_North_Jr Will this have any effect on NS' Southern Tier (of New York) line ? (ex-Erie, I think ?) Specifically, avoid the need to rebuild the Portageville Trestle, even with government financial aid ? Instead, just abandon or downgrade/ sever that route to avoid the cost, and run northeasterly from Harrisburg, PA instead ? - Paul North.
That said, a couple of weeks ago I was dispatched to Chicago to ferry a high value load to the Northeast. After passing Erie, PA, I could not help but notice parked train after parked train on the parallel former NKP. We are now in the era of more track, not less.
NS bought 58% of CR and CSX bought 42%.
NS needs the former Erie via the Portage viaduct to
reach the former NKP at Buffalo which will take on
even more importance with the re-building of the
yard and Bellevue, Ohioi.
Regarding NS competing with CSX, remember that there is more to New England than just Boston. For an NS "Patriot Corridor" train with loads for Maine and New Hampshire, the loads are already on Pan Am east of Albany, whereas CSX has to interchange with Pan Am anyway. So, yes, to Worcester, Boston, Providence, and Southern New England, CSX is faster, but to any point north of Boston, it is probably NS even right now.
The STB filing for this sale states that CP will surrender all of its Trackage Rights south of Binghamton and east of Buffalo. NS will provide Haulage Rights service for CP to connect to the Shortline RRs that would otherwise lose their connection to CP. I find it interesting that CP would gain Trackage Rights as far as Binghamton. CP also would retain exclusive access to GE in Schenectady. CP and NS will interchange at Saratoga Yd. in Saratoga, NY. While runthrough trains will be swapped at Mohawk Yd. in Schenectady, NY.
beaulieu CP also would retain exclusive access to GE in Schenectady.
CP also would retain exclusive access to GE in Schenectady.
Wonder what GE thinks of that?*
*It's not like GE is a big player or anything....
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