MONTREAL — Canadian National today announced it has reached an agreement to acquire Winnipeg, Manitoba-based The TransX Group of Companies, one of Canada’s largest and oldest transportation companies, focused on truck transportation...
http://trn.trains.com/news/news-wire/2018/10/30-cn-buys-manitoba-based-trucking-company
Brian Schmidt, Editor, Classic Trains magazine
The news report does not indicate where TransX has operating rights.
Just Manitoba? Just throughout Canada? Canada and USA?
daveklepper The news report does not indicate where TransX has operating rights. Just Manitoba? Just throughout Canada? Canada and USA? They do run as far west as Vancouver BC. I don't know about the eastern end of things in Canada, nor the US. Charlie Chilliwack, BC
They do run as far west as Vancouver BC. I don't know about the eastern end of things in Canada, nor the US.
Charlie
Chilliwack, BC
TransX boxes have been a common sight on CN intermodal trains out here for many years.
Greetings from Alberta
-an Articulate Malcontent
I have seen TransX semis in the Chicago area every now and again.
daveklepperThe news report does not indicate where TransX has operating rights. Just Manitoba? Just throughout Canada? Canada and USA?
"Operating Authority", or where a trucker was allowed to operate, hasn't been an issue in the US for decades. I don't know about Canada. In the US any trucker can pretty much go anywhere.
I live between Chicago and Milwaukee. I see TransX equipment on the Interstate frequently.
TransX is one of Canada's largest LTL carriers and among their several divisions operate throughout Canada, the US, Mexico and beyond.
This acquisition is important for several reasons: it puts CN directly into the LTL game in a big way. TransX is huge.. and they move huge volumes across Canada. TransX also operates large deck and truckload divisions, giving CN direct access to freight throughout the United States.
Secondarily, this is a shot across every major competitor's bow.. for years the LTL guys here in Canada have reduced their fleets in favor of "using rail". What could go wrong with that? Well.. they're about to find out, because their biggest ( and in most cases ONLY) linehaul supplier is now also a DIRECT competitor. IMHO, a brilliant strategic move on the part of CN..
They understand that the railroad mergers game is pretty much played out.. this is much better and smarter. In one fell swoop they've broadened their offering, ADDED thousands (yes thousands) of direct customers.. AND pissed all over their competitors.. Brilliant.
CP.. your move.
My one understanding is that in Canada, unlike the USA, most intermodel has been with trailers and containers owned by the two major railroads. This purchase should change the situation nominally if still considers TransX a truck company in itself, with many TransX trailer and container moves going from over-the-road to intermodel. I suspect that some of the other big five or big six may at least try to move similarly. CP would logically be the first, for self-protection.
There's no more TOFC here, and containers are generally owned by the transport company.. i.e. thus far Transx has used its own containers. TransX's competitors for the most part also use their own contianers. This is why, in Canada at least, one sees alot of TransX, M-O, Manitoulin, Clarke, etc.. on any given domestic container train. Based on what CN charges for the supply of containers, they don't want to be in the container supply business..
Basically CN just became a door-to-door entity, but using the Berkshire Hathaway model to do it.
Can US railroads own trucking companies? I remember that at one time they couldn't.
Backshop Can US railroads own trucking companies? I remember that at one time they couldn't.
Railroads have owned trucking companies for years. In the past the most publicized acquisitions have met with little or no success due to regulatory constraints, poor fit, and lousy overall execution.. (UP and Overnite is perhaps the best known example). Here in Canada CN and CP have both owned trucking operations as part of their overall thrust to becoming multimodal transportation entities verses "just a railroad" some 50 years ago.
What changed between now and 50 years ago: truck and rail are nolonger considered adversaries... at least not to the extent they once were. They are simply tools .. and whatever tool or combination of tools works best gets the job done. Customer service standards and transparency have also shifted things around in (perhaps) unexpected ways.. the longer transit time of rail has been improved in many lanes, and even at that that.. customers are better able to manage their needs using computerization in order to predict needs farther out.. So.. "we need this material yesterday!!!" has been to a great degree replaced with.. "we're going to need this material in 10 weeks from now".. Time in transit is thus nolonger the be all end all it once was.. ask any expeditor... speed ain't important.. time definite delivery is.
And last among the important factors: environmental and labor concerns are forcing trucking companies to adapt... the status quo cannot continue.. (funny you're getting this from me, a trucker) Running a truck for thousands of miles and having drivers sleep in a box mounted on the frame behind the cab is yesterday's model.. tomorrow belongs to shorthaul drayage.. drivers home every night or every other night at least.. and perhaps electrification. A cleaner environment and a job with a life for the trucker.. imagine that!
Ulrich wrote the following post[in part]"
"...Running a truck for thousands of miles and having drivers sleep in a box mounted on the frame behind the cab is yesterday's model.. tomorrow belongs to shorthaul drayage.. drivers home every night or every other night at least.. and perhaps electrification. A cleaner environment and a job with a life for the trucker.. imagine that! .."
Pretty suscinct read on the current situation in the trucking business, IMHO. Trucking transport and railroad carriage, seem to go hand in hand these days.
More than once, on this Forum; we have discussed some of the major, current issues in OTR trucking: driver shortages, Govermenttal hours of service regs, drivers being less inclined to be gone for weeks[ or longer] from their homes, and families. The rise of 'Regional-based' driver jobs, and so on. Just to touch on several of the issues.
CN has themselves in a good position.
With TransX and their own internal CNTL they have a good foot on the pavement.
With CN owning the Great Lakes Fleet they have a fleet of ships taking a chunk out of the bulk traffic volume on the Upper Lakes. (9 boats, 8 in active service) Getting a chunk of that ore business that isn't on the rails is a good thing. The other stone business they do must be worth it as well. It must be profitable if they haven't divested themselves of it.
10000 feet and no dynamics? Today is going to be a good day ...
Our community is FREE to join. To participate you must either login or register for an account.