Oh-oh, here we go. Penn-Central revisited.
I don't think he is going to find a similar receptive operating culture on CSX then he had on those Western RR's.....which tend to be more CAN DO. Just a theory I have that if he moves to CSX it will be major culture clash. We'll see though.
My guess is that if he goes to CSX, a lot of upper mgmt will be shown the door.
C&NW, CA&E, MILW, CGW and IC fan
St. Paul,
Do you have a credible source for this claim?
Mac
Speaking for myself (but I think the same is true for CMStPnP) the opinions are based on HHH's history and the current situation at CSX, as well as the typical scenario in other similar corporate situations. It's not based on sources or rumors.
I wonder if our Canadian cousins have the ability to prevent anything resembling a merger of CSX and CP. That surely would be the end game here. I suspect they do and have my doubts that any combination would pass their sniff test.
A merger would likely be his end game; however, I doubt now that a Canadian road would be his primary merger target. A merger, if one is going to happen, would likely involve CSX and UP or BNSF.
Ulrich A merger would likely be his end game; however, I doubt now that a Canadian road would be his primary merger target. A merger, if one is going to happen, would likely involve CSX and UP or BNSF.
And would UP/BNSF WANT CSX? What's in it for them?
Seamless nationwide service would benefit both parties to the merger.. at least EHH seems to think so. Maybe KCS too, who knows...
PNWRMNM St. Paul, Do you have a credible source for this claim? Mac
Put your Mouse over the NEWS menu at the top of this page and read the article next to the Hunter Harrison extended gut.........I mean photo.
schlimm Speaking for myself (but I think the same is true for CMStPnP) the opinions are based on HHH's history and the current situation at CSX, as well as the typical scenario in other similar corporate situations. It's not based on sources or rumors.
See my post above. There is a Source but if I link to it I am going to read about three posts from people that do not have access to read it because they are not subscribers or something to that effect. I thought you had to be a subscriber to post on this Forum but I am not sure.
PNWRMNM Do you have a credible source for this claim? Mac
LINK
Convicted One PNWRMNM Do you have a credible source for this claim? Mac LINK
Thanks to Chris / CopCarSS for my avatar.
CMStPnP PNWRMNM St. Paul, Do you have a credible source for this claim? Mac Put your Mouse over the NEWS menu at the top of this page and read the article next to the Hunter Harrison extended gut.........I mean photo.
Thank you, and Convicted One.
Your headline is third hand and unfortunately the source you copied it from, Bill Stevens, inverted the cause and effect, or the horse and the cart if you prefer. The investor group/hedge fund Mantle Ridge is the entity that is driving the process and has presumably hired Harrison as their railroad expert/boogyman. Mantle wants three (of 12) seats on the CSX board. Harrison is one of the tools in Mantle Ridge's tool box. The point is this is not Harrison's doing as your and Stevens' headline implies.
I believe Harrison runs a large risk of ending up with egg on his face if Mantle Ridge succeds and installs him as CEO. The current management at CSX has already bogged it down with monster trains on 28 hour "day" cycles. The big train strategy can go only so far and I believe CSX has gone as far as it can, and perhaps too far. Service reliability still counts for carload traffic which means getting trains in and out of yards on time. If Harrison continues down the big train road I fear quality will suffer more than it already has driving additional traffic to the highway and depressing earnings.
Of course he could surprise us all and go to somewhat shorter trains on a 24 hour or less cycle. With the current traffic downturn there is relatively more main line capacity to support that strategy.
Bring popcorn!
Potential disposition via short line lease or abandonment:
B&O between Seymour IN and St. Louis
B&O west of Cumberland MD through WV
Clinchfield
All coal branches in KY, VA or WV
Mobile AL to Tallahassee FL
Atlanta GA to Augusta GA
Major downgrade - C & O from Cincinnati OH to Newport News VA
kgbw49 Potential disposition via short line lease or abandonment: B&O between Seymour IN and St. Louis B&O west of Cumberland MD through WV Clinchfield All coal branches in KY, VA or WV Mobile AL to Tallahassee FL Atlanta GA to Augusta GA Major downgrade - C & O from Cincinnati OH to Newport News VA
Also:
Former Western Maryland "Dutch Line" - Hagerstown to Baltimore
and possibly even the B & O "Old Main Line" Point of Rocks, MD to Relay MD.
I would doubt the portion of the C & O main from Richmond to Newport News will be downgraded, but west of Richmond ?????
While we are at it - just abandon all of CSX - and all the traffic that is hauled. That will save a bunch of money and put 30K jobs on EHH's scalp.
Never too old to have a happy childhood!
BaltACDjust abandon all of CSX
Russell
csxnsBetter yet just abandon all the american railroads and put it all on the interstates.
Absolutely! After all, nobody ships anything by rail any more, do they?
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...
It is interesting how all those ultra "free market" types on here seem to reject the proven successful business approach of H. Harrison (as measured by profitability and operating ratio), seen throughout his long career.
schlimmreject the successful business approach oh Harrison (as measured by profitability and operating ratio).
I just roll my eyes how on one breath people say that the railroads have to adapt/change/evolve into the new economy, yet in the next breath - they want to hire the same old executive that has been doing the same thing for the past couple decades.
But what do I know...I believe there's more to a RR than operating ratios, and expecting record setting profits every quarter is unrealistic in the real world that exists outside of stockholder reports.
The opinions expressed here represent my own and not those of my employer, any other railroad, company, or person.
zugmann I just roll my eyes how on one breath people say that the railroads have to adapt/change/evolve into the new economy, yet in the next breath - they want to hire the same old executive that has been doing the same thing for the past couple decades. But what do I know...I believe there's more to a RR than operating ratios, and expecting record setting profits every quarter is unrealistic in the real world that exists outside of stockholder reports.
Well, of course, because railroads are not just a business, but a vital part of national infrastructure. But that subtle point, as seen in their original charters, has gotten lost in our mania for the short-term and bottom line.
Agree with Schlimm on that point, however, they seemed to have lost sight of that with the New York Central, Pennsy, Rock Island, Milwaukee Road...what were they? ..Lionel train sets? Extinction and near extinction.
Some reduction of duplicate and no longer useful lines (as opposed to not profitable enough) was sensible. But we have turned a transportaion infrastructure system into a mostly bulk cargo and train-load set of carriers linking about a dozen or so nodes.
No No No No No No NOOOOOOO! as a shareholder No! as a rider No! as a custumer No...As a commuter No!
schlimm Some reduction of duplicate and no longer useful lines (as opposed to not profitable enough) was sensible. But we have turned a transportaion infrastructure system into a mostly bulk cargo and train-load set of carriers linking about a dozen or so nodes.
Murphy Siding schlimm Some reduction of duplicate and no longer useful lines (as opposed to not profitable enough) was sensible. But we have turned a transportaion infrastructure system into a mostly bulk cargo and train-load set of carriers linking about a dozen or so nodes. Are you seeing that as something other than evolution of the transportation system in our country?
Are you seeing that as something other than evolution of the transportation system in our country?
Some would see it as evolution, which implies progressive change. Not sure that I would. So much has been lost. But if you see what has happened as progress, then you should be cheering on Harrison. He'll lop off many CSX lines and make it more profitable.
Your new President is the kind of guy that would say "Ok, it's fine to rip up lines wherever you want, but, for every mile you tear up you must employ 2 more people on your railroad". What a hoot that would be.
schlimm Murphy Siding schlimm Some reduction of duplicate and no longer useful lines (as opposed to not profitable enough) was sensible. But we have turned a transportaion infrastructure system into a mostly bulk cargo and train-load set of carriers linking about a dozen or so nodes. Are you seeing that as something other than evolution of the transportation system in our country? Some would see it as evolution, which implies progressive change. Not sure that I would. So much has been lost. But if you see what has happened as progress, then you should be cheering on Harrison. He'll lop off many CSX lines and make it more profitable.
I feel you're trying to put words in my mouth and suspect that you think I'm trying to put words in your mouth. That's not the case. I'm just trying to visualize this from the perspective of a subjective, third party with no real interest in railroads- something neither you nor I can profess to have.
For an outsider looking in, doesn't the current condition of the railroad industry appear to be what it is now because it evolved into this over the years? From that perspective, guys like Hunter Harrsion and Equity Funds Managers seem like just part of the evolutionary process. We who are a little more interested in the subject-for a lot of reason and from varying perspectives no doubt- may see things differently than those looking at simply $ and quick profits. Evolution, by nature, has winners and losers.
I guess I am using the term "evolution" in a more strict sense of meaning. I do not see the direction the rails have been steered as progress for the whole nation.
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