Trains.com

CSX Line Sales....

13404 views
43 replies
1 rating 2 rating 3 rating 4 rating 5 rating
  • Member since
    July 2003
  • 22 posts
Posted by acmatth on Tuesday, December 5, 2017 3:56 PM

It is rare to see a through train on that line any day of the week, especially mixed freight.  Most general traffic moves from Hanover, PA west to Hagerstown and back.  A daily rock runner goes south at night and the empties return to the quarry at Hanover the next afternoon.  Growing up along that line I remember long manifests going west from Baltimore along with unit grain and coal trains going east.  Occasionally there would be a surprise like a train load of tanks going to Ft. Holabird in Baltimore to be shipped overseas, or a rare TOFC train.  THe TOFC trains mostly went up the main line through Westminster where Maryland Midland runs now. 

  • Member since
    May 2003
  • From: US
  • 2,593 posts
Posted by PNWRMNM on Friday, December 8, 2017 5:20 PM

sps

If I was EHH I would spin lines off to an LLC short line conglomerate much like the INRD is now, wholly owned by CSXT. This would allow different operating requirements, rules and expectations without affecting the parent companies standing on/with Wall Street and the new conglomerate would not be publicly traded. In essence make two out of one. All the gymnastics of valuation, bidding, negotiations are avoided. Put all the wood from the trunk of the tree in one pile and the wood from the branches in another. You still own all the wood. 

 

 

Can you say Winona Bridge??

  • Member since
    December 2007
  • From: Southeast Michigan
  • 2,983 posts
Posted by Norm48327 on Friday, December 8, 2017 5:33 PM

Like Balt ACD still waiting to see what Harrison intends to do with the lines in Michigan. They are out of the triangle Harrison wishes to develop and in his mind should be spun off to short lines. I know CSX personnel in Michigan who are concerned about this.

Norm


  • Member since
    September 2013
  • 2,505 posts
Posted by caldreamer on Friday, December 8, 2017 6:28 PM

I live outside of Gettysburg, and sometines I will se long trains with up to 5 SD50;s, or at little as 2.  Mostly mixed freight , but a lot of covered hoppers are on the trains.  SD50's seem to be the norm for power, but occasionally a B-B unit or a road slug will bin in the mix depending on the trailing tonnage.

  • Member since
    December 2012
  • 279 posts
Posted by A McIntosh on Tuesday, December 12, 2017 9:26 AM

Since this is one site where one can speculate to ones heart content, allow me to share some thoughts, whether or not they are in left field. Some possible line/property sales could be as follows:

1. The Hudson valley line from poughkeepsie to Hoffmans currently leased to, I believe, Amtrak is sold to them.

2. The CSX owned ex C&O trackage in Virginia currently leased to BBRR sold to VA DRPT and continued lease to the current tenant.

3. The S line from AM junction just north of RVM all the way to Boyan wye in Raleigh to VA and NC for the SEHSR. Maybe this could breathe new life into the S line south of Raleigh, if that line isn't on the list to be spun off.

  • Member since
    May 2003
  • From: US
  • 25,292 posts
Posted by BaltACD on Tuesday, December 12, 2017 10:45 AM

One thing to remember when speculating about line sales.

EHH will not let anything go at fire sale prices.

Anything sold will be done at above market value.

Never too old to have a happy childhood!

              

  • Member since
    December 2007
  • From: Southeast Michigan
  • 2,983 posts
Posted by Norm48327 on Tuesday, December 12, 2017 11:32 AM

BaltACD

One thing to remember when speculating about line sales.

EHH will not let anything go at fire sale prices.

Anything sold will be done at above market value.

But what will Harrison do if he has no takers at inflated prices? Most of CSX's lines in Michigan are running low on traffic and with the exception of the line to Detroit have precious few customers. The Saginaw Sub north of Flint has already become a short line (not sure if it was sold or leased). The Grand Rapids sub still has coal and Amtrak but it, too, is short of customers along the line. The Plymouth sub, Plymouth to Grand Rapids is also pretty much devoid of meaningful traffic.

Could the Michigan lines CSX would like to shed be profitable under shortlines? There are some possibilities but it would take some experienced marketing folks and quality service to make them so. Holding out for high dollar may not be Harrison's best plan.

 

Norm


  • Member since
    May 2003
  • From: US
  • 25,292 posts
Posted by BaltACD on Tuesday, December 12, 2017 1:01 PM

Norm48327
 
BaltACD

One thing to remember when speculating about line sales.

EHH will not let anything go at fire sale prices.

Anything sold will be done at above market value. 

But what will Harrison do if he has no takers at inflated prices? Most of CSX's lines in Michigan are running low on traffic and with the exception of the line to Detroit have precious few customers. The Saginaw Sub north of Flint has already become a short line (not sure if it was sold or leased). The Grand Rapids sub still has coal and Amtrak but it, too, is short of customers along the line. The Plymouth sub, Plymouth to Grand Rapids is also pretty much devoid of meaningful traffic.

Could the Michigan lines CSX would like to shed be profitable under shortlines? There are some possibilities but it would take some experienced marketing folks and quality service to make them so. Holding out for high dollar may not be Harrison's best plan.

Who says they aren't 'earning their keep' today.  As long as a line makes enough to pay for it's expenses there is no real rush to sell it.  CSX divested and/or abandoned all the lines that couldn't pay for themselves long ago.  There may be lines on the CSX that are not 'big earners'; but from what I witnessed in the 36 years that CSX was on my paycheck they didn't keep lines that lost money.

Never too old to have a happy childhood!

              

  • Member since
    December 2007
  • From: Southeast Michigan
  • 2,983 posts
Posted by Norm48327 on Tuesday, December 12, 2017 1:33 PM

BaltACD
Who says they aren't 'earning their keep' today. As long as a line makes enough to pay for it's expenses there is no real rush to sell it. CSX divested and/or abandoned all the lines that couldn't pay for themselves long ago. There may be lines on the CSX that are not 'big earners'; but from what I witnessed in the 36 years that CSX was on my paycheck they didn't keep lines that lost money.

The best response I can offer is based on what information my CSX and CN signal maintainer friends have confided in me. Of course in business rumors fly at the speed of sound while factual information plods along at a snail's pace. All those I know have been concerned for some years they may have been forced to move to retain their employment with CSX or Cn or be forced to take employment with a short line or a contractor should they choose to stay where they are.

I have been told short lines in Michigan favor contracting out signal and track maintenance and have met a few guys who were previously rails and now working under totally different circumstances and no longer covered under the terms of the RRB.

Would you be concerned regarding their future given they planned on receiving RRB benefits and suddenly found themselves shuffled off to another program that left them in the lurch financially? Had I worked for forty years expecting RRB benefits and suddenly be told I would be livid as I suspect you would.

IMO, that change indicates loyal employees mean nothing to management. They are simply disposable pawns who management decrees sacrificial in the quest to capture the king.

It's one big and stinky game of financial and political chess.

My track foreman hit the jackpot and retired in good stead after 42 years of service. Others may, given today's penchant for reducing expenses to benefit investors may not be so fortunate.

Norm


  • Member since
    May 2003
  • From: US
  • 25,292 posts
Posted by BaltACD on Tuesday, December 12, 2017 2:03 PM

Norm48327
 
BaltACD
Who says they aren't 'earning their keep' today. As long as a line makes enough to pay for it's expenses there is no real rush to sell it. CSX divested and/or abandoned all the lines that couldn't pay for themselves long ago. There may be lines on the CSX that are not 'big earners'; but from what I witnessed in the 36 years that CSX was on my paycheck they didn't keep lines that lost money. 

The best response I can offer is based on what information my CSX and CN signal maintainer friends have confided in me. Of course in business rumors fly at the speed of sound while factual information plods along at a snail's pace. All those I know have been concerned for some years they may have been forced to move to retain their employment with CSX or Cn or be forced to take employment with a short line or a contractor should they choose to stay where they are.

I have been told short lines in Michigan favor contracting out signal and track maintenance and have met a few guys who were previously rails and now working under totally different circumstances and no longer covered under the terms of the RRB.

Would you be concerned regarding their future given they planned on receiving RRB benefits and suddenly found themselves shuffled off to another program that left them in the lurch financially? Had I worked for forty years expecting RRB benefits and suddenly be told I would be livid as I suspect you would.

IMO, that change indicates loyal employees mean nothing to management. They are simply disposable pawns who management decrees sacrificial in the quest to capture the king.

It's one big and stinky game of financial and political chess.

My track foreman hit the jackpot and retired in good stead after 42 years of service. Others may, given today's penchant for reducing expenses to benefit investors may not be so fortunate.

Hate to say it but the Michigan lines have been dangled for the past 30 years.  Small segments have been leased and/or sold - but not at fire sale prices.

I fully understand the less than settled feelings of CSX employees in all crafts in Michigan.  Will they stay employed long enough to collect RRB benefits or will political machinations try to STEAL those benefits from them and ME!  

Never too old to have a happy childhood!

              

  • Member since
    December 2007
  • From: Southeast Michigan
  • 2,983 posts
Posted by Norm48327 on Tuesday, December 12, 2017 2:36 PM

Chuck

That remains to be seen.

Norm


  • Member since
    September 2013
  • 2,505 posts
Posted by caldreamer on Tuesday, December 12, 2017 5:04 PM

I was suprised to see two AC4400CW's leading a train west from Hanover, Pa yesterday.  As I stated in an earlier post the usual power are SD50's, so those were a real treat to see.

  • Member since
    December 2011
  • 440 posts
Posted by Uncle_Bob on Sunday, December 17, 2017 11:44 AM

With Harrison's death, who knows what CSX will do about line sales, or anything else.  Hopefully they'll make wise decisions about what to keep and what to shed.

  • Member since
    July 2003
  • 109 posts
Posted by txhighballer on Wednesday, December 20, 2017 3:28 PM

Uncle_Bob

With Harrison's death, who knows what CSX will do about line sales, or anything else.  Hopefully they'll make wise decisions about what to keep and what to shed.

 

Who at CSX is handling short line leases and sales?

Join our Community!

Our community is FREE to join. To participate you must either login or register for an account.

Search the Community

Newsletter Sign-Up

By signing up you may also receive occasional reader surveys and special offers from Trains magazine.Please view our privacy policy