I vote CP for KCS as well. Only because I was very impressed at what I observed they did after the Milwaukee Road absorbtion and the efficiency improvements they made. The investment in reverse CTC on primarily single track from one directional CTC on twin tracks and new signaling, reduction to single track with long sidings. Attempts to work with several communities to preserve old railroad depots vs demo them.
I think CN has enough access to shipping ports already, whereas I think CP could use more.
Also, I have to hand it to them they are first class in their ability to milk hundreds of millions of dollars from the Feds and state DOT's for Amtrak improvements that benefit primarily the freight side. Plus their handling of Amtrak trains within schedule is really highly rated by Amtrak. They shake down the Feds and DoT's regularly and everyone is still happy. I mean that is just masterful PR.
If KCS is to be acquired by another railroad, I'd rather see it go to CP. Whether they use the CP name or come up with a new name. Possibly KCS would still exist on paper but be operated under the CPRS banner like other US lines.
Even under CN it may still be a paper company, like many of their other US lines.
If it stays independent, that's OK, too.
Jeff
#s 4 or 2. CPRS + KCS is the one combination that makes the most sense of all.
I vote for:
2) KCS gets absorbed into CP
It's a true end-to-end merger, and better balances CP to CN, although I also agree that KCS de Mexico be spun-off as a neutral shared asset.
A hedge fund with a history of messing with railroads. I think it stands for the children's investment fund or something like that.
They failed to take over CSX back around 2008, and advocated raising freight rates and stock buybacks in order to raise revenue and share prices at the time.
Now they are CP's largest shareholder, and CN's second largest after Bill Gates.
Greetings from Alberta
-an Articulate Malcontent
What/who is TCI?
Still in training.
My choices would be 5, then 4 then 2. We will see because the final say is up the STB.
I don't think CN is going to give up yet. But I also think it is unlikely that a CN-KCS merger will be approved soon.
Even with the penalty payment, CN has succeeded in making a KCS merger significantly more expensive for CP.
I can also see CN vs TCI turning into a long, nasty proxy fight, just like TCI vs CSX.
I'd like to see KCS remain independent and no mergers take place. But I don't think this will happen.
Of the 5 options you offer, I would prefer 5, (or) then 2, (or) then 4, (or) then 3, (or) then 1 .....in my order of preference.
What I think would be better is to "Conrail" it, such that not one inch becomes surplused.
Perhaps apportioning the segments south of the Rio Grande in the same way they did the "shared assets" of Conrail...
First choice: #5
Second choice: #4
Re #5, I hate to see another old flag fall.
Re #4 However, I'm not so sentimental about the Canadian Pacific name. (Apologies to the northern neighbors.) Possible new name: Canamex Railroad System. But not just "CRS" written on the equipment (please!), but rather, in order of preference: "Canamex Railroad," "Canamex RR," or just "Canamex."
What I think will actually happen is #2, sadly.
1st choice: 2
2nd choice: 5
No particular rational for either. I just have always liked CP; CN not so much.
I'm curious about where our membership comes down regarding KCS. This is not asking what the best business move is, or what best sustains competitive balance. I'm just talking emotionally. Simply, what do you want?
Please vote for one first choice and one second choice:
1) KCS gets absorbed into CN (looking unlikely)
3) KCS merges with CN, resulting in new name for entire system (looking extremely unlikely)
4) KCS merges with CP, resulting in new name for entire system (I'm guessing probably not likely)
5) KCS remains independent.
Our community is FREE to join. To participate you must either login or register for an account.