Should there be another round of mergers

[favuprailroadfan]

I am open to any opinions that "should there be more mergers or not? I want to here what you have to say.

[Anonymous]

I say not right now. As a UP modeler I like to see the Union Pacific stay around alot longer.So if mergers happen again, I hope it is UP doing the taking over. With better results than the SP take over.

[thirdrail1]

Do you want to "there" what we have to say as well? The STB decision posted on June 11 will make it very difficult to economically justify further mergers right now, as the concessions that would have to be made to meet the "enhance competition" requirements would negate any savings. Therefore the only benefits to be derived would be to the ego of the surviving CEO.

[Anonymous]

we should merge all the railroads and call it "Amfreight."

[thirdrail1]

Considering the cost of Amtrak to the taxpayer, I don't think the public would want this, let alone the stockholders of the railroads and most especially the shippers that use them.

[jamesedwbradley]

Seems there's a lemming-like 'pressure' toward only 2 U.S. systems - I spent 22 years in the freight business and was a backer of rate/service regulation of transport, but ICC didn't do it right. Combination of deregulation and de facto monopoly now seen for many shippers doesn't seem accepatable. Two systems at every siding can be wasteful, too; we saw that around here (PA)for 100+ years. A huge system is difficult to manage for the customer - 'best' lines around here were the Western Maryland and D&H - 'small enough to care'. A 'railfan' manager didn't hurt, either, but it would seem to be advisable to go very slowly on any further mergers1
Jim Bradley Natl. Director Hawk Mtn. Chapter NRHS

[Anonymous]

As much as I dislike further mergers they are bound to happen. It will probably end up with two large class 1 railroads. The "regional" railroads will probably increase as these two behemoths will probably be unable to cope with the amount of trackage and shed off excessive or redundant track. Who knows maybe "contraction" will take place after things don't work out.

[Anonymous]

I also dislike the idea of further mergers, but think that they are inevitable. The main question would be how soon. Don't forget that CN & CP are also potential players in any future mergers of North American railroads. Remember the proposed CN/BNSF combination of a year or so ago? US roads have made inroads into Mexican operations, CN & CP have done the same with IC & SOO. I wonder about the eventual possibility of only a couple of major systems for the entire North American Continent of the US, Canada and Mexico, as a result of full implementation of NAFTA? Ron.

[Anonymous]

I never thought I'd miss Conrail.Look what that did to NS.

[Anonymous]

Should there be another round of mergers? I really don't like horror stories so I hope not.

[Anonymous]

20 years from now they will realize it was all a mistake and they will have to break them up again.
Look at MA BELL and MICRO SOFT. There will be a RR board meeting with a handful of individuals with more money than Bill Gates ever imagined, while the railroads go to pot along with the whole country.

[Soo2610]

I sure as heck hope not!! But if it does happen I'm willing to bet that the two railroads still standing 20 years from now will be the UP and BNSF.

[wabash1]

i dont understand what the problem is here. what did the norfolk southern do.

[jsanchez]

I think we should leave it the way it is, NS made such a mess of things in he Northeast,(losing trains, delivering cars a month late, angering all employees, not listening to the Conrail folks advive, being stupidly arrogant,) I don't think it would be in the best interest of the customers, railroads, and the public to go through another round of mergers. The Conrail, NS, CSX merger was probaly the best thing to happen to the trucking industry since the U.P./S.P. merger. The railroads can't seem to manage what they have currently, I don't think getting bigger would help, the railroads should focus on improving service and transit times, not mergers. I also think the class 1's should sell off more lines to class 2 and 3's and let people who know what they are doing run these lines.

James

[wabash1]

who bought who???? the conrail folks dont seem to understand the ns bought you. and if you quit fighting the system it run smoother. and if they dont like the employer. well then quit.its that simple.im sure there be somebody to take your job. wont be no fighting that way.

[jsanchez]

It's funny how CSX didn't have half the trouble NS did, maybe its because they actually treated their employees with a little respect and tried to familiarize themselves with how the lines operated. I think most of N.S. management will admit they really goofed in how they handled the merger.( Wall Street and the S.T.B sure Noticed) CSX wasn't perfect, but if you were a shipper or shortline you were very thankful not to be dependent on N.S.

[wabash1]

they did but you didnt here about it as much. but why confuse you with facts when your mind is made up.

[Soo2610]

Amen, brother! I agree!

[Saxman]

During the first weeks of the mereger I spent plenty of time in and around Toledo,OH assisting Canadian National trains in and out of both the Mega Yard and Stanley Yard. While CSX was having their problems at Stanley it was nothing like what was going on on the ex Conrail Chicago Line. On one night the only track open was a yard track as both mains were blocked with trains. Crews were walking trains to determine what was on them. I remeber one crew being asked if they were qualified to Cleveland as the outbound crew could not be found. Fortunately the crew was and the train proceed without stopping.

All in all it was not pretty in Toledo for NS on the ex Conrail Main. It was a far change from the nights when it was Conrail that we would be threaded through east and west bound trains at CP Maumee off of the Miami Cut to the Detroit Line and CP Alexis to return to Flat Rock.

Have things gotten better. Sure they have but the first few weeks were bloody. If this is what mergers cause, I do not think the industry needs more. The merger with the CN and IC went so smoothly because we were end to end. Also, it was over a year later that the IT side was finally merged. Not on day one. I suspect the same will be true with the WC merger which again will be and end to end merger.

Did NS appear arrogant in the beginning? Yes! Remember the bidding war for Conrail when CSX announced they were going to merge?

[Anonymous]

Go ahead and provide some facts, I'll never forget seeing the Allentown Yard parking lot, trains lined up for miles with outlawed crews, talking to many shortline managers/workers about how much business was lost due to NS some of it now permanent.
Another bone to pick is how they have out right lied about keeping the Holidaysburg shops open as a merger condition. I had high hopes for Ns as most of us did and still do in Pennsyvania. The point is we don't won't to go through this again anytime soon, that is why I am opposed to anymore mergers.

[Anonymous]

With all the talk of mergers i have to wonder what will happen to my favorite railroad IMRL. I hope If it does cease to exist that Union Pacific Railroad takes over them. I also Hope if Canadian Pacific also Fades into history that Union Pacific takes them over too.

[Anonymous]

Here's my 2 cents, which is probubly all its worth.
The way I see it the major problem is arrogence and ego.That puts too many trucks on the road because the railroads can't provide timely seamless service door to door or coast to coast.
The shippers want a timely schedual that the railroads can't provide,so they have to turn to trucks. This puts more underqualified drivers on
our already overburdened highway system. The reason these drivers are underqualified is because
the scheduals are so grueling, the trucking companies can't keep qualified drivers.
Here's what needs to happen:
(1) A CP/UP/CSX merger
(2) A BNSF/CN/NS merger
This gives,(with the Mexican affiliates) two
east-west end to end systems that covers the whole north american continet.
(3) Let the regionals and the short lines do all
of the local work. With the right incentives
this may inspire some of them to reopen some
of the abondoned lines. This in turn will revitalize those portions of this country that
the rails built then abondoned.Also these roads, either thru wholly owned or partnered
with regional trucking companies,could provide service where there is no rail spur.This does two things (a)Gets alot of trucks off of the road
(b)Gives the remaining drivers a
sane schedual so the turnover is
reduced.

So this is how it would work: The regional/shortline either by rail or truck picks up at the shippers door. The load is taken to the terminal of the shippers choice,(one of the two remaining national end to ends). On the recieving end it's picked up at the rail terminal by a shortline/regional to be delivered to the reciever.
No fuss. No muss. Timely pick up and delivery.Less trucks on an already overcrowded highway system.
Better retention of qualified drivers. Happy shippers. Happy recievers. Happy people in revitalized small towns. Happy everybody.
Works for me!!!