Why is it that the new Canadian pacific ECOs are now being transported to the twin cities on Canadian National?
Because if they are delivered to the CP in the State of Illinois, they will have to pay Chicago/Illinois Sales Tax. Minnesota State Sales Tax must be less inexpensive. This is nothing new. The Milw and C&NW used to move each others new engines to Milwaukee and 'deliver' them there. The CGW had the C&NW move their new GP30 and SD40 engines to St Paul, MN - Then the CGW moved them 'dead in tow' to Oelwein, IA for set up.
Jim
Modeling BNSF and Milwaukee Road in SW Wisconsin
ATSF and the BNSF Never accepts delivery of any new GE power till the Argentine Yard in Kansas City. IL IIRC from my Brother would tax them at close to 6% Capital Tax Rate.
I think the OP was asking why CN was transporting CP engines.
22dec I think the OP was asking why CN was transporting CP engines.
CN is 'delivering' them outside of the State of Illinois - Thus CP does not incur certain Illinois taxes. Several railroads have had agreements to do this - Nothing unusual.
Also Mayfield, KY is located on a shortline which can only deliver to the CN. So CN is going to get the first portion of the delivery no matter what happens.
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