Here’s one for those who like to dream.
If you had the money, which of the following railroads would you buy? Union Pacific, Kansas City Southern, Canadian National, Amtrak, Canadian Pacific, Norfolk Southern, CSX And why that one?
What would you do, milk it for the most immediate cash return or hold on to it for the long term a ;a Warren Buffet and BNSF? Would you retain the present management team or hire new blood?
Personally, I would take over CSX. The RR has done pretty well especially considering the abysmal shape large parts of the network was in when CSX began operations. I would forego almost all dividend income and spend the money on infrastructure. I believe that within five years CSX would at least double in value. And I would keep the present management team in place. They know what needs to be done but haven’t had the money to solve the problems quickly. In fact, Michael Ward & Co have done an excellent job.
What say you?
(If this subject has benn hashed over before, please ignore this post.)
If I had the MONEY (you didn''t specify a limit!), I'd buy whatever was available, run all the Dismals off a cliff and rebuild a full Steam fleet and just tow random sized boxcars around. I honestly can't think of any other reason why "I" would buy a RR. If I had that kind of money, I would not need to invest it into anything at all. I am not in this life to make money... Bleah, that's disgusting.
Semper Vaporo
Pkgs.
The opinions expressed here represent my own and not those of my employer, any other railroad, company, or person.
The OP may have to reword his question to be "You must purchase a Class I railroad (in North America, I presume), which one do you purchase and why?"
I'd go after Wheeling & Lake Erie and Iowa Interstate, then try go get a gateway to New York via the former PRR Northern Region and NYC Stoneboro Line (a helper-free crossing of the Eastern Continental Divide), and knit the entire package together.
Then I'd try to solicit traditional freight along the lines of the Reading's stillborn Bee Line service.
I think I'd put my money into restoring and/or helping some of the "tourist" lines, large and small. Besides track and equipment, I think I'd help them invest in publicity and public relations - far too many get by on a thread (and a very thin one at that) and just don't have the ability to market themselves.
I might just dabble a bit in shortlines, but would probably leave the Class Ones alone.
Larry Resident Microferroequinologist (at least at my house) Everyone goes home; Safety begins with you My Opinion. Standard Disclaimers Apply. No Expiration Date Come ride the rails with me! There's one thing about humility - the moment you think you've got it, you've lost it...
I don't have the money, but I have the luxury of having something very specific in mind if I did.I would buy the Michigan Shore Railroad, and obtain the necessary trackage rights from CSX to get trains into Holland, and possibly Grand Rapids. There is nothing "scenic" about the line, so any passenger operations would be all about the destinations...places like Holland, Grand Haven, and Muskegon, or possibly things such as dinner trains. The money I "had" would be enough to buy or build the equipment necessary for such trips. Of course, I'd run passenger trains between Muskegon and Holland to connect with existing or expanding Amtrak service between Grand Rapids and Chicago (as existed until 1971).Considerable rehabilitation of track would be necessary to provide faster operation. Since PTC would be needed for the chemical traffic that still exists, we would have the necessary safeguards to operate the trains at the same speeds as with a signaled line. Rail would be replaced (from what I can figure, the line still has mostly the same jointed 112-pound rail it had when I grew up there). The drawbridge, trestle, and fill over the Grand River would have to be replaced with something that won't settle as quickly and would be more suitable for boat traffic...possibly a causeway with drawbridge.Trackage would need to be restored in some places where it had been abandoned. Even a short spur from Berry Junction to the Michigan's Adventure amusement park would be good for bringing tourists from Muskegon (or beyond) to that venue. I doubt that lines to (or toward) beaches in the larger towns could be restored.I'd need to hire a good freight salesperson to see what freight business could be kept and expanded upon. But above all, it would become a connecting and tourist passenger line for an area that ordinary railroads have largely given up on.
I can be as crazy as I want to here, because all of this is predicated on my having the money. I don't and--since I don't do the lotteries--never will. And nobody said I had to spend it "wisely".
Carl
Railroader Emeritus (practiced railroading for 46 years--and in 2010 I finally got it right!)
CAACSCOCOM--I don't want to behave improperly, so I just won't behave at all. (SM)
I would purchase a shortline, expand it and create a local passenger service.
(My Model Railroad, My Rules)
These are the opinions of an under 35 , from the east end of, and modeling, the same section of the Wheeling and Lake Erie railway. As well as a freelanced road (Austinville and Dynamite City railroad).
Jimmy_Braum I would purchase a shortline, expand it and create a local passenger service.
An excellent way of turning a large fortune into a small fortune
I'd buy nudie bars adjacent to all the major class one terminals.. if I had the money...
Randy Stahl I'd buy nudie bars adjacent to all the major class one terminals.. if I had the money...
Out of all the ideas, this is the only one that would have a return on investment.
Never too old to have a happy childhood!
Not really...they generally don't make money and only serve to launder money for the drug smugglers (now there's a business with excellent margins).
NS is a good candidate. Although its operating ratio is not the best there is much potential. NS appears to have the best operating plan although some one did not for see the need for so many crews on the northern tier.
Shorten dispatch districts by farming out some to other less busy centers until more dispatchers are qualified. Survey all crew bases and give TDY bonuses to those who will temporarily move to the northern tier. Which brings up the question how can TDYs be qualified on new territory ?. Can engineers operate as conductors to qualify on route ? How much supervision needed to qualify in each position if already a full engineer and / or conductor ? ETC ?
Plow all earnings back into infrastructure and maybe even borrow short term against future earning to speed up same.
Work out a joint agreement with BNSF to purchase from the various owners the old TP&W route from Peoria - Logansport. BNSF already has track Galesburg - Peoria and Logansport connects with the Wabash line of NS to Fort Wayne.. Operate as many thru intermodals over the route as the infrastructure will allow as well improve its infrastructure as quickly as possible. The intermodals usually have a higher HP/TON ratio that will allow any grade restrictions to be handled. Every train that avoids Chicago will improve the fluidity for the remaining NS trains.
As well another route that might allow directional running would be the BNSF route from Galesburg - Streator and the NS route (CIS) Streator - Kankakee and KBB route to Sheldon and join TPW.
Or continue on CIS to Shelby and get track age rights on CSX Monon route - Monticello the NS to Logansport
This might take away some traffic from CSX.
Reading. Then I'd pass 'Go' and collect my $200.
Nudie bars, the only return on your investment?
Agree, and the one enjoying that return... would be your ex-wife.
I would invest in passenger corridor service.
I'd buy the more interesting bits of railroads in the U.S. that have been abandoned (Tennessee Pass, Saluda Hill, etc) and offer bribes to corporations to locate their business along said lines, with the understanding that they must ship by rail. And on those same lines I'd run nice little tourist passenger trains. I'd also try to resurrect the North Shore from Chicago to Milwaukee, and perhaps even beyond.
I'd also make sure I kept enough so I could retire in comfort.
If I had the money, I'd pick up Iowa Interstate (and CSX from Bureau to Blue Island where they have trackage rights) and upgrade it for 110mph all the way from Blue Island to Omaha. Then start running passenger service Chicago - Omaha because that route just needs passenger trains back and soon and I don't want to wait for key folks in Iowa to "get it".
If I had more money, I'd build a brand new true high speed route from Chicago to New York for passenger service. Chicago to New York with strategic stops in 8 hours!
CJtrainguy If I had more money, I'd build a brand new true high speed route from Chicago to New York for passenger service. Chicago to New York with strategic stops in 8 hours!
Sounds like the re-incarnation of the Chicago-New York Electric Air Line!
CSSHEGEWISCH Sounds like the re-incarnation of the Chicago-New York Electric Air Line!
There's a chapter in my railroad history I'd missed until now. I was actually thinking of a new line along the Water Level Route. With today's high speed trains, it would still be possible to make the entire trip in about 8 hours and make stops in some key cities along the route. Using the Water Level Route, upstate New York would also be covered for the high speed service they need to NYC in addition to the though service Chicago - NYC. One could then expand with across the platform transfer in Albany to High Speed service to Boston. Alternately, MU trains for the trip to Chicago.
You could save your self some money and just buy the ones at the away from home terminals.
Jeff
Make sure all employes comply with rule G-string!
To get back to morality... err... I mean, reality... err... I mean, blue-sky'ing the OP's question...
How about buying CRANDIC and reinstating Cedar Rapids to Iowa City passenger/commuter service?
It would require upgrades to the present track between the two cities for passenger service and some track to connect the CRANDIC track to the Iowa Interstate track (and appropriate track rights) just north of Kinnick Stadium (U-of-I sports complex) and the University of Iowa Hospitals and Clinics, as I think those two venues would be the major passenger service points in Iowa City. With additional track in the downtown area to again connect the Iowa Interstate to the CRANDIC where the two lines cross (grade separated), stops could also be at the Veteran's Affairs Health Care System and the U-of-I Libraries as well as other downtown venues, and that would complete a loop-back in Iowa City to eliminate the need for push-pull operation, wyes, run-arounds (or even turntables).
U.P. track rights in downtown Cedar Rapids would provide a loop at that end, with no additional track needed there.
I believe "Downtown-to-Downtown" commuter service could be implemented... And given the amount of automobile traffic on I-380 between the two cities, I believe the enterprise could almost break even if the price of gas goes up much more.
The only problem with my blue-sky'ing this way is that I'd want steam locomotives and a steamer has been on CRANDIC rails only twice in it's history... once during WWII when a derailment caused a troop train to detour onto CRANDIC track, and once when the Iowa Interstate used the wye near Marengo to turn the two Chinese QJ's (that IAIS bought), on their inaugural run a few years ago. There might be some major resistance to regular steam on CRANDIC rails!
I'm sure that that there was some major resistance to diesels on CRANDIC rails in the late 1950's! At any rate, CRANDIC's current diesel roster is in the process of becoming more interesting.
I'd back this plan. Rapid transit on CRANDIC simply must happen soon. There's good customer potential between Cedar Rapids and Iowa City, not to forget the CR airport.
I kind of like the idea of making a loop in Iowa City and in Cedar Rapids to enclose more potential destinations. Some modern rolling stock, start with hourly trips, maybe 30 minutes apart in rush hour. Gotta love it. Nice thing is that traffic flow goes both ways there, not the typical one direction commute.
zugmannIf I had the money to buy a class 1, I wouldn't buy any if them. I'd go and enjoy the rest of my life without the stress, agrevation, or work of having to own a class 1.
+1 !
-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/)
I agree. Excellent choice. But I think the same about UP, and it might have better long-term prospects. Growth states.
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