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Do we see mergers in 2019

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Posted by BaltACD on Thursday, March 7, 2019 10:12 AM

CSSHEGEWISCH
 
zardoz
 
BOB WITHORN
Perhaps you should be a bit more serious though. It really would be the manly thing to do. 

You are assuming that I am a male of the species, and that if indeed I am a male, that I would be even slightly concerned that my behavior fit in with the preconceived notions of what constitutes proper 'manly' behavior.  

What would you expect from someone who thinks that B-24's were great bombers Whistling

We all have a long time to be seriously dead.  No sense in being serious before we are dead!

Never too old to have a happy childhood!

              

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Posted by kgbw49 on Thursday, March 7, 2019 1:04 PM

Balt, that matchstick race car was just crazy! Why did he build it? Becuase he could! Why did he burn it? Because he could!

To borrow a phrase from those beer commercials, "Dilly dilly!"

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Posted by BaltACD on Thursday, March 7, 2019 2:52 PM

kgbw49
Balt, that matchstick race car was just crazy! Why did he build it? Becuase he could! Why did he burn it? Because he could!

To borrow a phrase from those beer commercials, "Dilly dilly!"

Why does anyone do anything?  Because you want to and because you can.

Never too old to have a happy childhood!

              

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Posted by kgbw49 on Thursday, March 7, 2019 3:47 PM

Yes! It was definitely very cool!Thumbs UpThumbs Up

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Posted by Marc6850 on Tuesday, March 12, 2019 5:12 AM

There is no need for mergers.  The industry is healthy.  The Class I's less BNSF and restructuring operations and are projecting some significant service improvements.  Shippers want more choices, not less.  Shippers prevented Hunter Harrison's takeover of the NS by the CP, and are not going to roll over just because someone thinks a massively larger system is good for Wall Street.

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Posted by zugmann on Tuesday, March 12, 2019 12:30 PM

Marc6850
Shippers prevented Hunter Harrison's takeover of the NS by the CP, and are not going to roll over just because someone thinks a massively larger system is good for Wall Street.

Who needs Harrison when they just adopted his strategies?

It's been fun.  But it isn't much fun anymore.   Signing off for now. 


  

The opinions expressed here represent my own and not those of my employer, any other railroad, company, or person.t fun any

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Posted by kgbw49 on Tuesday, March 12, 2019 6:00 PM

I am still surprised that neither of the Eastern roads have made a play for KCS over the years.

I distinctly remember reading in Trains back when the new merger rules came out after the proposed CN-BNSF merger that those new rules (the idea of projecting future mergers and future competition, etc.) did not apply to a merger with KCS. I recall the article specifically stating that the old rules would apply to a merger with KCS.

That does not mean that the STB would not move the goalposts in reviewing such a transcation, but it would be on a different playing field.

Given the growth of manufacturing in Mexico and the fact that about 70% of the US population lives in Texas and the other 30 states on or east of the KCS North-South Main Line, you would think that single-line service between Mexico and those 31 states would make for an attractive business combination.

Perhaps I am missing something, but in terms of total capital needed for a purchase, KCS at a market capitalization of $11.44 billion plus a 30% premium would require a total of approximately $15 billion to acquire.

KCS reported 2018 Net Income of $629 billion, dropping 23.3% of its $2.7 billion in revenues to the bottom line as net income.

Using PSR, an Eastern Road could probably retire even more locomotives equivalent to the whole KCS fleet.

It is likely $629 million in Net Income after a $15 billion investment is not a high enough rate of return to justify that investment, so there would have to be significant synegies that could be demonstrated that would reduce costs or increase revenues further to increase the rate of return on the invested capital.

One has to think an Eastern US road will snap KCS up someday - there is too much logic to such a combination in the long run.

Or not, but it makes for some interesting discussion!

 

 

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Posted by CSSHEGEWISCH on Wednesday, March 13, 2019 7:23 AM

I'm not sure that single-line service is all that it's made out to be.  A merger between KCS and one of the Eastern roads would pretty much lock out the other road from interchange with KCS.  After all, why would the newly merged road shorthaul itself?

The daily commute is part of everyday life but I get two rides a day out of it. Paul
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Posted by cat992c on Wednesday, March 13, 2019 7:58 PM

Would be open to BNSF merging with Norfolk Southern.It least BNSF was not stupid enough to join the headling rush to begin going with psr as if it were the end of the world.Matt Rose knows better.Who the heck cares what a dead man left behind?

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Posted by tree68 on Wednesday, March 13, 2019 9:08 PM

cat992c
Who the heck cares what a dead man left behind?

Activist investors, apparently.

One thing you'll notice in most of the announcements involving railroads and PSR is that they are adopting the principles of PSR.  In other words, picking out what they think are the good parts and disregarding the rest.

All the activist investors see is "PSR" and they think a gold mine awaits...

Back on topic - one wonders if there might be any assimilation of shortlines/regionals back into the Class 1's.  G&W's potential sale being a possible indicator.

LarryWhistling
Resident Microferroequinologist (at least at my house) 
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There's one thing about humility - the moment you think you've got it, you've lost it...

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Posted by Miningman on Thursday, March 14, 2019 12:44 AM

Have to agree with Overmod. We have heard for years about what a prize peach KCS is and also a corresponding growth of industry and movement of goods from Mexico. Canadian Pacific was heralded as the perfect fit. But we get bupkis.  

Everyone keeping their 'powder dry' as they say. 

However it does resemble a tinderbox and one event could trigger the last dash to the last roundup. Feels that way. 

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Posted by SD60MAC9500 on Friday, August 30, 2019 3:14 AM

No. I believe we will have a better chance of seeing a CN and Tim Hortons merger.. Precision Scheduled Coffee and Donut's..

 

Rahhhhhhhhh!!!!
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Posted by Juniata Man on Friday, August 30, 2019 8:30 AM

SD60MAC9500

No. I believe we will have a better chance of seeing a CN and Tim Hortons merger.. Presicion Scheduled Coffee and Donut's..

 

 

That‘s a merger I could support!

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Posted by SD60MAC9500 on Friday, August 30, 2019 10:35 AM

Juniata Man

 

 
SD60MAC9500

No. I believe we will have a better chance of seeing a CN and Tim Hortons merger.. Precision Scheduled Coffee and Donut's..

 

 

 

 

That‘s a merger I could support!

 

LOL! Just imagine instead of your coffee coming by itself. The server pours everyone's coffee and then blocks them together sending them out in one line.. As you sit at your table your coffee gets switched out at your table.. Donuts ditto!. I tried to post a picture I imposed of a CN freight at Tim Hortons, but wasn't able to do itBig Smile

 

P.S. I need to learn some precision scheduled spelling while I'm at it! I just noticed I spelled precision wrong..

Rahhhhhhhhh!!!!
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Posted by BaltACD on Friday, August 30, 2019 11:42 AM

Juniata Man
 
SD60MAC9500

No. I believe we will have a better chance of seeing a CN and Tim Hortons merger.. Presicion Scheduled Coffee and Donut's.. 

That‘s a merger I could support!

Fritz in KC has a PSR

Never too old to have a happy childhood!

              

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Posted by SD60MAC9500 on Friday, August 30, 2019 12:21 PM

BaltACD

 

 
Juniata Man
 
SD60MAC9500

No. I believe we will have a better chance of seeing a CN and Tim Hortons merger.. Presicion Scheduled Coffee and Donut's.. 

That‘s a merger I could support!

 

Fritz in KC has a PSR

 

 

LOLOL! this is great Smile I'll have to check this place out next time I stop by KC.

Rahhhhhhhhh!!!!
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Posted by BaltACD on Friday, August 30, 2019 2:05 PM

SD60MAC9500
 
BaltACD 
Juniata Man 
SD60MAC9500

No. I believe we will have a better chance of seeing a CN and Tim Hortons merger.. Presicion Scheduled Coffee and Donut's.. 

That‘s a merger I could support! 

Fritz in KC has a PSR

 

LOLOL! this is great Smile I'll have to cheack this place out next time I stop by KC.

My son took me there when we visited the attractions at Hallmark Center.  It was a hoot!.

Never too old to have a happy childhood!

              

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Posted by Overmod on Friday, August 30, 2019 5:46 PM

SD60MAC9500
As you sit at your table your coffee gets switched out at your table..

I'm surprised none of you remembers this (5:00 forward; PSR reference at 2:40)

https://www.youtube.com/watch?v=2CMCroHjm08

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Posted by SD60MAC9500 on Friday, August 30, 2019 10:31 PM

Overmod

 

 
SD60MAC9500
As you sit at your table your coffee gets switched out at your table..

 

I'm surprised none of you remembers this (5:00 forward; PSR reference at 2:40)

https://www.youtube.com/watch?v=2CMCroHjm08

 

 

Well Overmod I'm a 80's baby, but I did get a kick out of that clip.. LOL. Thanks for sharing thatYes

Rahhhhhhhhh!!!!
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Posted by zardoz on Saturday, August 31, 2019 10:59 AM

Overmod
I'm surprised none of you remembers this (5:00 forward; PSR reference at 2:40) https://www.youtube.com/watch?v=2CMCroHjm08

In the same vein: 

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Posted by Paul_D_North_Jr on Sunday, September 1, 2019 10:01 AM

Thanks for sharing that one, Overmod.  Something to look forward to - have to string up some catenary for the cat, though! (Imagine what happens when the tail comes in contact with an energized overhead . . . Mischief )

- PDN. 

"This Fascinating Railroad Business" (title of 1943 book by Robert Selph Henry of the AAR)

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