UP and CSX to merge?

[Anonymous]

While I was out at the UP yard I over heard a teacher talk about her friend who lives in another city. She went on to say her friend's husband who works at UP said his job his in question due to talk that UP and CSX will merge. The e-mail she got went on to say UP might not keep their name (I find that hard to believe due to the historic name and equipment on the roster). If this is right UP will get larger. Layoffs have already started. I guess some CSX employees have been transfered to Omaha and the headqaurters has not been determined yet. In a way I find this shocking, but has anyone else heard this or any of you UP or CSX employees heard? I am eager to find out what is going on. I have noticed alot of CSX power on UP trains as of late.

Thanx

[Anonymous]

I don't believe anything can go forward as far as a merger between UP-CSX because the surface transportation board has delayed any mergers for the time being. If they do choose to merge that would probably start another merging frenzy like earlier this decade. I'm sure BNSF and NS would have to merge to compete with the behemoth of UP-CSX which is too large for me to picture.I'd hope that they wouldn't in the wake of the carving up of Conrail and how levels of service dropped.

Dave

[thirdrail1]

I think here is another case of the rumor mill working overtime. No doubt some CSX employees are stationed in UP's Omaha offices, and some UP employees are in Jacksonville, too. But you'll probably find a few in Fort Worth (BNSF) as well. In these days of run through freights and equipment pools it is quite common to have operating and car management people working at connections' headquarters. Every study that has been done concerning creation of a transcontinental railroad has shown the potential traffic loss to be greater than the potential gain. There is very little transcontinental traffic anyway.

[Justicar]

Yeah, Greg is right...its all propaganda. Until something official is announced or very credible inside information is gleaned, I don't buy it. I don't think it would happen anyway. Reportedly, the STB is thinking of upgrading WC to Class 1 so that it can adjudicate the merger/purchase.
That transaction pales in comparison to UP-NS. I think the Feds have learned their lesson with the last fiasco.

[Justicar]

Hey Dave,

I had some specific questions about Twin Cities railroads. Drop me a line if you have the chance.

jc
[e-mail]
Canadian Pacific Railway
Minneapolis

[wabash1]

well i dont think it would happen. and rumors are a dime a dozen. for several years i have heard that the bnsf was going to take over parts of if not all of the ns. well i havent seen that come true either.

[Saxman]

The STB has ruled that the mereger of the WC and CN will be treated as a "minor" tranasaction. I think what will be seen in the industry instead of mergers, is more marketing alliances. Such as the alliance between CN/IC and KCS.

[Anonymous]

i work for the up and we are always having rumors go around, like for instance, that we are going to buy IMRL (this one is possible). one of the discussions is that eventually we might go with the CSX, we already partner with them on express lane service, and they are one of our largest intermodal customers, (these partnerships are one of the reasons you see lot's of CSX power, but run through units are very common anyway). as far as layoffs, these currently have nothing to do with a pending merger, rather they have to do with the economy and controlling costs. one interesting comment we have been hearing isn't about CSX, but CP, who we also partner with, and the parent company is preparing to break up into parts, which would place CP for sale. anyone for
UP+CP and BNSF+CN. probably more likely in the near future than UP+CSX, BNSF+NS.

[favuprailroadfan]

I like the BNSF+CN merger, I'm not for sure about UP+CP. I like UP+CSX merger because these two interchange big time in Chicago. I would allow less terminal time there and the other interchange points. UP+CP, they would duplicate each other too much. What about KCS+Whoever is interested. I like KCS because they have grown in the era of big time Class 1's. I am open to opinion on the KCS issue. Tell me what you think.

Dru

[thirdrail1]

After the rules the Surf Board issued yesterday, I do not think anybody will be merging (other than CN and WC) for quite a while. Yes, UP and CSXT interchange a lot of traffic in Chicago, but so do BNSF and CSXT, and so do NS and UP. They all interchange a lot of traffic at other places, too, like New Orleans. The STB wants everyone to get their own houses in order before they further consolidate. Unless the big ones improve the quality of their service, there won't be anything but coal moving by rail in a decade anyhow.

[favuprailroadfan]

Gregg,
I hadn't the rules that the SurfBoard layed down yet. Thenks for the input on that. I think anybody that UP could merge( aside BNSF) would work good. So thanks for the input.

Dru

[Anonymous]

i'm a big fan of KCS. that is my primary modeling interest, and my grandpa and uncle worked for them. i would just as soon see them stay independent, but if they do have to merge, i figure it would be either bnsf or ns. they get a ton of coal trains from bnsf at kc, and they do the intermodal thing for both ns and bnsf down south. the other possibility would be cn/ic because of the alliance they have. i kind'of root for the underdog though, so i like'em just the way they are.