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September 2015 "Trains" NP-MILW merger.

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Posted by Convicted One on Saturday, August 15, 2015 7:25 PM

dakotafred
but believe you me this is not the way it was represented to the public.

 

I completely agree. It was a shell game designed in part to soothe the segment of the public that relished passenger rail.

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Posted by dakotafred on Saturday, August 15, 2015 7:13 PM

I was working for a railroad and keeping up with the news during Penn Central and the creation of Amtrak. "Insiders" can claim Amtrak was supposed to be only a flag stop enroute to abandonment, but believe you me this is not the way it was represented to the public.

To the extent abandonment was the real plan all along, shame on the planners for their misrepresentation to the public.

Instead, we have seen another example of the hardihood of ALL government programs, worthy or not. I would count Amtrak among the worthy survivors.  

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Posted by NorthWest on Saturday, August 15, 2015 6:51 PM

BaltACD
It is always easier to criticize decisions after they have been made and one can see how they turned out than it is to make the decisions at the time they have to be made with the information available at that time.

Exactly. Amtrak was intended to die a quick and quiet death, with the similar to SD40-2 SDP40Fs going to freight railroads. Then, in 1973, OPEC decided to start the oil embargo...

 

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Posted by Convicted One on Saturday, August 15, 2015 6:39 PM

NorthWest
The author argues that it would have been cheaper for the railroads to continue to operate them and then cancel them all when capacity was cheap than to join Amtrak and eventually deal with their trains that do not pay full access costs.

 

Didn't most people at the outset expect Amtrak to fade into oblivion? I seem to recall a Don Philips installment where he states that the one thing no one ever expected was for Amtrak to survive 40 years and become a budget "hot potato" (my metaphor, not his)

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Posted by BaltACD on Saturday, August 15, 2015 6:37 PM

It is always easier to criticize decisions after they have been made and one can see how they turned out than it is to make the decisions at the time they have to be made with the information available at that time.

Blunders are in the eyes of the beer holders.

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Posted by NorthWest on Saturday, August 15, 2015 6:19 PM

Under the Amtrak legislation, railroads could either join or operate their trains into the late 1970s when they could legally be discontinued (I don't remember the specific year), which a few railroads did.

The author argues that it would have been cheaper for the railroads to continue to operate them and then cancel them all when capacity was cheap than to join Amtrak and eventually deal with their trains that do not pay full access costs.

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Posted by Convicted One on Saturday, August 15, 2015 6:12 PM

chutton01
 Blunder 2 was "joining Amtrak" - and if I am reading that one right, basically it boils down to railroads shouldn't have joined Amtrak, but just let LD passenger service vanish by the 1970s?

 

I may be wrong, and if I am then I'm sure someone will jump in to correct me. But I always thought that the major railroads, prior to Amtrak, were obligated to furnish passenger rail, as a public service. Something to do with their having been given the power of eminent domain back during their growth phase. Mom, apple pie, and serving "the greater common good" and all that noise. (As an aside, I always thought that was where the expression "accommodation run" came in as a description of some passenger service. The railroad was  providing the service as an accommodation to public need,  rather than in true business spirit.)

The primary benefit (within this line of thinking) of Amtrak to the railroads being that it relieved them of that obligation. I look forward to the collective responses  that are sure to follow.

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Posted by dakotafred on Saturday, August 15, 2015 5:48 PM

I loved those old Taj Mahal railroad stations -- they were things of beauty and real monuments to the aspiring instincts of man and business. BUT --

Just the property taxes on them -- especially in the East, where the real edifices were and the taxes highest -- helped guarantee a passenger deficit for owner railroads and could not be sustained. To that extent, I understand the 'Amshacks' that have taken their place and think they will do very nicely for the few trains they host every day.

We can rebuild and pay taxes on cathedrals when Americans return to passenger trains in a meaningful way.

Incidently, a city does not have to wait on Amtrak. The best station new or old I saw on an extended trip last fall was New Orleans', which is a transit center for all surface modes that, although new, has that old heroic railroad feel.

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Posted by chutton01 on Saturday, August 15, 2015 5:18 PM

Convicted One
What can one think? I was shocked to see Penn Station included as one of the biggest blunders in RAILROADING.

Gee, how many railroads even think passenger rail is important today? How many are sitting around thinking "If we just had an opulant passenger terminal in Manhattan, we could operate a successful passenger business!"?  How many of the class one's have any desire at all to be involved in passenger rail?


I just saw the "21 Blunders" article in Trains today, and as a life-long New Yorker I have no real regrets that Penn Station was torn down (of course, I was about 1 when this happened in '65) and replaced by MSG & Penn Plaza (MSG I have often attended events at over the decades - darn convenient); I'm pretty ambivalent about the "new" Farley Station Annex, because while I do appreciate the long necessary extension of platforms and expansion of underground walkays, I'm quite meh about the "train hall" skylight and not at all happy about Amtrak moving ticketing offices to Farley.  From images I've seen, the old Penn Station IMO just had a lot of unused, open space (must have been fun to heat), and before you go on about Grand Central Terminal, consider the original plans did call for a multistory office building above Grand Central (just be thankful we didn't get the 1968 International Style building illustrated on that page; even I think that looks silly).

But getting back to the Blunders article - IIRC at least 2 other "major" blunders dealt with passenger service
Blunder 1 was the major investment railroads made in passenger service, mostly in new passenger rolling stock, after WWII.  If I understand that correctly, that means by Amtrak day in 1971 (assuming the time line remains the same otherwise), instead of relatively modern stock (25 years or younger stainless steel passenger stock from Budd and PS), Amtrak would have to make do with only pre WWII 40+ year old worn out heavy-weights, and a handful of one-offs streamlined trains (think Zephyrs and the like).  That would have went over well witht the traveling publc at the time.
But, that wouldn't even matter - as Blunder 2 was "joining Amtrak" - and if I am reading that one right, basically it boils down to railroads shouldn't have joined Amtrak, but just let LD passenger service vanish by the 1970s?
So, who would have been using that preserved Penn Station from the initial Blunder? I can assure you the majority of NJT and LIRR commuters really wouldn't give a poop one way or another, especially as the concourse as it stands is fairly well-lit. clean, and convenient.

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Posted by Convicted One on Thursday, August 13, 2015 5:38 PM

dakotafred
hate these lists disguised as news stories wherever they appear. They are strictly sausage stuffers, and should be regarded as such by readers.

 

What can one think? I was shocked to see Penn Station included as one of the biggest blunders in RAILROADING.

 

Gee, how many railroads even think passenger rail is important today? How many are sitting around thinking "If we just had an opulant passenger terminal in Manhattan, we could operate a successful passenger business!"?  How many of the class one's have any desire at all to be involved in passenger rail?

 

I could see the demolition of Penn Station being included in such a list in Architectural Digest perhaps. But including it's demise in a railroad-centric account, seems just a little too weepy, sticky, sweet sentimentalist to me.

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Posted by MidlandMike on Wednesday, August 12, 2015 8:36 PM

CSSHEGEWISCH

NP/MILW would have definitely been the weak sister and would have been stuck with a redundant Twin Cities-Seattle line.  GN had a better engineered main and Burlington had a better network of Midwest routes.  While the NP main has not been abandoned, much of it is leased to and operated by Montana Rail Link, not BNSF.

 

I think everyone has agreed that NP was the weak sister.  Nevertheless, BN wisely kept the MRL line as a reserve, even guaranteeing them a certain number of trains to make sure they stayed in business.  Many of the responders to this post look at the merger from the same point of view of the BN, saying that it was not a mistake.  I think the original thesis of the Trains article was that it was a mistake from the point of view of the health of the railroad industry as a whole.  After the merger, the MILW failed and the NP main was downgraded.  Apparent competition eliminated.  If the merger didn't happen, even a struggling NP/MILW would have kept the GN/CB&Q on their toes, and from becoming complacent.  They (NP/MILW) probably would have been swollowed up by the UP eventually, providing actual competition in the northern corridor.

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Posted by PNWRMNM on Tuesday, August 11, 2015 9:09 PM

Uncle Jake
NP did have a branch network in eastern Washington's grain country that was much more extensive than that of the GN.

 
True, as did the UP. About 1974 the federal government provided the local barge line a free ride to Lewiston ID. Elevator operators built new facilities on the river and abandoned the railroads for the river. All of them.
 
BN abandoned the former GN lines ASAP after the merger. NP was cut back from Lewiston to Moscow ID, and ultimately sold off. UP sold off to shortline operator also. Shortline operator ran track into the ground and threatened to abandon track, so state bought both former NP and UP lines, what there was left of them. State is now looking for $58 million to get back to 25MPH standards, plus another $610 million for who knows what. Probably bridges since all lines have an extensive collection of timber trestles that have gone largely unmaintained for the past 40 years or so.
 
 
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Posted by Paul_D_North_Jr on Tuesday, August 11, 2015 8:58 PM

"Morgan, it all depends on whose ox is being gored."

If you know the source of this quote, no further explanation is necessary; if you don't, it'd take too long for me to find and explain it. 

- PDN. 

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Posted by Uncle Jake on Tuesday, August 11, 2015 8:42 PM
NP did have a branch network in eastern Washington's grain country that was much more extensive than that of the GN.
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Posted by VerMontanan on Tuesday, August 11, 2015 7:41 PM

NP Eddie

I strongly disagree that the NP was a weak railroad. Remember that I worked for the NP from April 1966 until the BN merger.  The NP had on line coal in North Dakota, sugar beets in eastern Montana and the fruit belt in the Yakima valley. Don't forget all the grain the NP hauled.

Ed Burns

 

Ed,

I can't see where anyone said the NP was a weak railroad; the reference was weaker compared to GN and CB&Q.

With regard to your mention of commodities:  The coal along the NP in North Dakota was lignite, which is the worst kind there is (that's why today it's not shipped any long distance; the only thing that makes lignite economically feasible is where the facility using it is very close by, but higher grade sub-bituminous from Montana and Wyoming is shipped all over by rail, even to North Dakota); Sugar beets were not handled any great distance, rather just to a processing plant such as in Sidney or Billings (therefore low margin freight); Today, all the traffic out of the Yakima Valley is handled on one daily local making a Yakima turn out of Pasco; NP probably served a grain producing area in North Dakota on par with GN, but didn't go to South Dakota at all.  Today on BNSF, there are 23 shuttle grain facilities accessed by former GN trackage in Minnesota, but only 2 on ex-NP; In Montana, of the 23 shuttle grain facilities today, 20 are on ex-GN routes, but only 3 on former NP.

That doesn't make it a weak railroad just a weaker one.  But much stronger than the Milwaukee, to be sure.

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Posted by CSSHEGEWISCH on Tuesday, August 11, 2015 7:08 AM

NP/MILW would have definitely been the weak sister and would have been stuck with a redundant Twin Cities-Seattle line.  GN had a better engineered main and Burlington had a better network of Midwest routes.  While the NP main has not been abandoned, much of it is leased to and operated by Montana Rail Link, not BNSF.

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Posted by MidlandMike on Monday, August 10, 2015 8:55 PM

Redore

BN was hardly a blunder as stated in the article.  NP and MILW were the two weaker roads and probably would have ultimately failed.  GN-CBQ would have wound up with the GN ore business in Minnesota, the Powder River coal boom, most of the North Dakota oil boom, the best intermodal route Seattle/Portland to Chicago, a main line Chicago to Denver, and a mainline to Texas.

 

I don't buy that portion of the article.

 

NP/MILW would have failed?  How much of the NP mainline has been abandoned by BNSF?  Is it not busy?  How much of the MILW Chicago-Twin Cities main has been abandoned?  How about from there to Terry, MT?  If NP/MILW had been shut out of Powder River, they could have built the Tongue River line themselves, and tapped in as the UP did.  How much traffic would the BNSF Denver line have if they did not have access to the ex-DRGW/WP line?

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Posted by NP Eddie on Monday, August 10, 2015 8:16 PM

I strongly disagree that the NP was a weak railroad. Remember that I worked for the NP from April 1966 until the BN merger.  The NP had on line coal in North Dakota, sugar beets in eastern Montana and the fruit belt in the Yakima valley. Don't forget all the grain the NP hauled.

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Posted by BaltACD on Monday, August 10, 2015 6:45 PM

Revisionist history always has an agenda.

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Posted by Redore on Monday, August 10, 2015 3:13 PM

BN was hardly a blunder as stated in the article.  NP and MILW were the two weaker roads and probably would have ultimately failed.  GN-CBQ would have wound up with the GN ore business in Minnesota, the Powder River coal boom, most of the North Dakota oil boom, the best intermodal route Seattle/Portland to Chicago, a main line Chicago to Denver, and a mainline to Texas.

 

I don't buy that portion of the article.

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Posted by VerMontanan on Wednesday, August 5, 2015 8:57 AM

MidlandMike

 The MRL is nice to have as an alternative when BNSF has a traffic surge, however, as long as they have access, they might not want to own it.

As a reminder, BNSF still owns the right-of-way on which the MRL operates (except for some branch lines); MRL is leasing it through at least 2047.
The traffic on and the value of the MRL makes for difficult speculation given its history.
 
Earl Currie gave an interesting presentation at the Great Northern Railway Historical Society convention in Helena, Montana in 2014.  Mr. Currie was the Rocky Mountain Division (which basically encompassed what became the MRL) superintendent some years before the MRL lease.
 
His presentation was comparing the two routes (ex-GN and ex-NP) between Laurel and Sandpoint, and the operating characteristics of each.  BN had a big push to jettison part of the railroad during the 1980s (as their myopic mindset was the railroad would not make a great return on investment).  The ex-NP route from Laurel to Sandpoint was a prime candidate due to its multiple helper districts and restrictive work rules.
 
Both routes were studied.  Running trains from Laurel to Sandpoint via Great Falls and Shelby was found to be cheaper as grades were not as steep and that no helpers were required for westward trains.  BN was ready to just shortline the Laurel-Sandpoint segment and reroute all the traffic when certain entities within the organization (interjecting reality) advised that the Shelby-Laurel ex-GN route was still dark territory with some light rail, had not enough long sidings, and had 5 tunnels with clearance restrictions to some auto racks and doublestack equipment.
 
Well, this changed everything.  The ex-GN route would need to be upgraded to handle the traffic.  This was unacceptable, since they just wanted to get rid of something, but not actually invest in anything else to be able to do it!
 
Hence was born the concept of Montana Rail Link.  BN could rid themselves of the ex-NP route and not have to do any upgrades (technically, this wasn't true, for instance BN kept the Helena-Garrison segment for 5 more years, doing a lot of infrastructure work, including on Mullan Tunnel, before turning that segment over to MRL).  But then they had to make sure the MRL could sustain itself, so MRL would also take over the Laurel and Billings terminal areas.  BN would pay MRL for every car passing through Laurel (for instance, from Greybull, WY to Great Falls) whether it was actually switched there or not, and gain a large customer base in the Billings area.  In addition, it would be guaranteed a certain amount of overhead traffic.  All to ensure it could support itself.
 
All of this skews the reality of how and why traffic is routed through Montana to this day.  Without a doubt, the MRL is valuable component of the BNSF system, but the traffic it gets is kind of like some "chicken or egg" questions: Would BN/BNSF rather route traffic via Great Falls instead of MRL, or does it route via MRL to fulfill the quota, or is the MRL the cheapest route regardless?  While the Great Falls route has received some upgrades, has it not been enhanced to meet its full potential simply because it's not economically feasible because BN/BNSF needs to route a certain amount of traffic via MRL?
 
These types of scenarios extend to other areas, too.  For instance, from Glendive to Sandpoint via Snowden and Havre is only three miles further than via Laurel and Missoula but is much cheaper to operate due to its milder grades, and using few crews, fuel, and locomotives.  Yet the Glendive-Snowden route is still not completely upgraded to handle these heavier trains.  It could happen in the future, but again there is reduced incentive due to needing the fill the quota on MRL.
 
So when it comes to labeling the MRL a mistake:  It all depends. When you have little incentive to use routes with superior operating characteristics to fill an artificially created quota, yes, that's a mistake. But the guarantee of traffic kept the MRL in top condition and was critical for rerouting traffic during the flooding and burgeoning traffic in North Dakota in 2011-2013. Lots of components to any speculation, regardless of how you look at it.
 
 

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Posted by MidlandMike on Tuesday, August 4, 2015 8:06 PM

dakotafred

Mike: Besides coal, oil, ethanol and puh-lenty of grain, the former NP east of Billings catches overflow traffic from the High Line and is a critical resort when something goes wrong up there.

Don't bet on management making the Montana Rail Link mistake twice.

 

As I have mentioned before, I think the ex-NP east of Glendive, where most of the trafic you mentioned originates, is safe for the foreseeable future.  However, west of there is heavily coal dependent.  I have heard the anecdotal stories of BN operations people who were sorry to lose the MRL milage.  Nevertheless, I understand the plan after the projected Tongue River shortcut was to have been built, was to continue spinning-off more NP line east to Miles City to MRL.  The MRL is nice to have as an alternative when BNSF has a traffic surge, however, as long as they have access, they might not want to own it.

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Posted by carnej1 on Tuesday, August 4, 2015 11:16 AM

mudchicken

 

 
carnej1

Correct me if I'm wrong but didn't the Milwaukee Road ask to be included in the Burlington Northern Merger?

IIRC, BN didn't want it..

 

 

 

They asked in March 1973 (3 years after BN hatched)....

 

MILW shot themselves in the foot.

 

 If I correctly recall the proposed C&NW-Milwaukee road merger  (which actually began as a proposed threeway merger that would also have included the Rock Island) made some sense when initially discussed in the early 60's but the I.C.C approval process dragged on until it was a moot point..

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Posted by aricat on Tuesday, August 4, 2015 8:10 AM

I would think the only Milwaukee trackage NP would have wanted was the Twin Cities to Milwaukee and Chicago main line and very little else. UP would have wanted Chicago access. NP would have been hard pressed to survive if GN had gotten the Burlington and the UP got acess to Chicago. The NP would have sought merger with GN sometime in the 1970's. Most Milwaukee trackage would have been abandoned shortly after the merger, had it happened. 

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Posted by NP Eddie on Monday, August 3, 2015 8:26 PM

ALL:

I thought it would be good to tell of two mistakes the BN/BNSF made. First was MRL. Dennis was an NP clerk that bid from Northtown to Laurel, Montana immediately after the 1970 merger. He told me that the BN was sorry for the sale before the ink was dry on the paperwork. Gary is a retired  SOO/BN/BNSF train dispatcher. He said that Dennis Washington has the best haulage agreement. When the BN/BNSF train hits Jones Junction, the MRL gets paid.

About 1998, Rob Krebs was at Northtown for an open meeting. I ask him abou the re-purchase of the Washington Central (Stampede line) for 30 million. All he said that a previous administration was to blame. It was sold for 3 million!

The BNSF will not repeat previous mistakes.

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Posted by mudchicken on Monday, August 3, 2015 2:39 PM

carnej1

Correct me if I'm wrong but didn't the Milwaukee Road ask to be included in the Burlington Northern Merger?

IIRC, BN didn't want it..

 

They asked in March 1973 (3 years after BN hatched)....AFTER they had spent 10 years trying to merge with CNW and then were abandoned at the church steps ...AND AFTER they tried to join the CRIP/UP merger before that became a fiasco. They were so sure the CNW+MILW thing was going to happen that they waved the Big Nuthin' right on by without as much as a reservation after they had fought it tooth and nails in the old Pacific Great Northern (Pre-BN 1962 Hill lines effort that failed)

MILW shot themselves in the foot.

Mudchicken Nothing is worth taking the risk of losing a life over. Come home tonight in the same condition that you left home this morning in. Safety begins with ME.... cinscocom-west
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Posted by carnej1 on Monday, August 3, 2015 11:14 AM

Correct me if I'm wrong but didn't the Milwaukee Road ask to be included in the Burlington Northern Merger?

IIRC, BN didn't want it..

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Posted by VerMontanan on Monday, August 3, 2015 9:28 AM

MidlandMike

VerMontanan, The real circuity in the Soo/CP/SI/UP route comes after Spokane, wher it takes the trip over the UP via Hinkle/Portland/Seattle.

Not really, because BNSF uses the same circuity.  (It's actually not circuity, it's the case of not using 125% more power to move the trains over the mountains.)  Remember, we're talking Twin Cities to Pacific Northwest. Except for intermodal (which there is relatively little of from the Twin Cities or Dakotas to the Norhtwest), BNSF merchandise, coal, crude, and grain is routed via Pasco and Vancouver, WA to Seattle/Tacoma, pretty much paralleling the CP/UP route.  With regard to grain, it's also important to remember that more goes to Portland, Vancouver, Kalama, and Longview than to Tacoma and Seattle anyway. Crude is destined mostly to BNSF-captive locations, CP has given BNSF trains from the Bakken at New Westminster, BC for delivery to port facilities north of Bellingham.

MidlandMike

While I don't think that a BNSF spin-off of the ex-NP east of Billings is imminent, I would not want to guess beyond 5 years out.  Are not most of the upgrades they are doing on the route in he Bakken Field?  Between oil field production decline curves and pipeline competition, that business could disappear as fast as it started.

Yes, most of the upgrades are in the Bakken Field, but on multiple routes. Ex-Great Northern routes across North Dakota have seen the most upgrades, but on the ex-Northern Pacific route has seen them also.  Extra yard tracks have been added at Forsyth and Glendive, as well as about three extra sidiings between Forsyth and Casselton.  Glendive to Casselton should be all CTC by the end of this year, whereas a couple of years ago, none was.

 

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Posted by dakotafred on Monday, August 3, 2015 7:09 AM

Mike: Besides coal, oil, ethanol and puh-lenty of grain, the former NP east of Billings catches overflow traffic from the High Line and is a critical resort when something goes wrong up there.

Don't bet on management making the Montana Rail Link mistake twice.

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