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NS/KCS Merger

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NS/KCS Merger
Posted by caldreamer on Thursday, August 2, 2012 2:36 PM

On Hunter Harrison thread members were talking about other mergers (e.g. CP and KCS) which would not  work.  So I was thinking how about a merger of NS and KCS.  KCS gets direct access to the northeast and southeast and NS gets access to the midwest , suthwest and Mexico.  Very little if any duplicte track and would make a good contiguous rairaod.  What are your thoughs on this merger?

 

 

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Posted by DwightBranch on Thursday, August 2, 2012 3:35 PM

gsrrman

On Hunter Harrison thread members were talking about other mergers (e.g. CP and KCS) which would not  work.  So I was thinking how about a merger of NS and KCS.  KCS gets direct access to the northeast and southeast and NS gets access to the midwest , suthwest and Mexico.  Very little if any duplicte track and would make a good contiguous rairaod.  What are your thoughs on this merger?

 

 

It makes sense for the reasons you list, the only overlap would be St. Louis-Kansas City. My guess is that KCS managers, those who would stay on the merged company, won't want it though because of what I might delicately term "differences in management  philosophy". NS has a reputation for being hard to work for, but not BNSF.

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Posted by mudchicken on Thursday, August 2, 2012 5:18 PM

If you can survive in the circus called KCS, you can certainly survive NS.

Mudchicken Nothing is worth taking the risk of losing a life over. Come home tonight in the same condition that you left home this morning in. Safety begins with ME.... cinscocom-west
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Posted by caldreamer on Thursday, August 2, 2012 5:37 PM

Yes I know.  I have a friend who is a roadmaster of engiens at the Enola, Pennsylvania yard and he tells me about NS.

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Posted by DwightBranch on Thursday, August 2, 2012 6:01 PM

mudchicken

If you can survive in the circus called KCS, you can certainly survive NS.

I don't know, I have never heard of KCS doing anything like making their engine crews use a plastic bag as their bathroom, and sign for plastic bags (with serial numbers) prior to a trip then SHOW the plastic bags (used or unused) to a manager at the end.

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Posted by caldreamer on Thursday, August 2, 2012 6:24 PM

Can we get back to the subject of this post, your thoughts on a possbile NS/KCS merger.

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Posted by CNW 6000 on Thursday, August 2, 2012 6:31 PM

Interesting concept.  I wonder just how much traffic goes those ways now.

Dan

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Posted by Lyon_Wonder on Thursday, August 2, 2012 6:42 PM

At least NS wouldn't have to worry about painting a KCS Belle heritage unit since KCS already has a fleet of recent SD70ACes and the ES44ACs in that paint scheme.

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Posted by ValleyX on Thursday, August 2, 2012 7:55 PM

DwightBranch

 

 mudchicken:

 

If you can survive in the circus called KCS, you can certainly survive NS.

 

 

I don't know, I have never heard of KCS doing anything like making their engine crews use a plastic bag as their bathroom, and sign for plastic bags (with serial numbers) prior to a trip then SHOW the plastic bags (used or unused) to a manager at the end.

A practice that was discontinued many years ago now but still surfaces here from time to time to show how rotten NS is perceived to be.  They are trying to change, so I hear.

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Posted by caldreamer on Thursday, August 2, 2012 8:15 PM

I would imagine quite a bit since a lot of products are made in Mexico.  The connecting points would be Chicago, Springfield and St Louis.  I forgot to mention from the west access to New  Orleans, Gulfport Mississippi and Mobile.  NS already access New Orleans and Mobile from the north, so the western access would strenghten their access to these two important ports  With current widening of the Panama Canal the gulf ports will become even more important rail hubs.

.

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Posted by Paul_D_North_Jr on Thursday, August 2, 2012 9:33 PM

NS already has trackage rights to Dallas (not sure how or when they were acquired/ created,  nor which is the 'host' railroad, though), as well as its own tracks to Memphis, St. Louis, and Kansas City  - see this system map: http://www.nscorp.com/nscportal/nscorp/map.html  

I believe there are at least a couple trains a day each way to/ from Dallas, plus "Triple Crown Services" RoadRailer service to Kansas City and St. Louis: http://www.triplecrownsvc.com/ServiceArea.html 

This route also includes the NS-KCS 320-mile long "Meridian Speedway" joint venture/ operation from Meridian, Mississippi to Shreveport, Louisiana- see: http://www.nscorp.com/nscportal/nscorp/Media/News%20Releases/2006/ns_kcs.html    

- Paul North. 

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Posted by jeaton on Thursday, August 2, 2012 10:55 PM

A NS/KCS merger would be a big benefit to CSX.

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Posted by DwightBranch on Thursday, August 2, 2012 10:59 PM

jeaton

A NS/KCS merger would be a big benefit to CSX.

How do you mean, that it wouldn't work?

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Posted by Los Angeles Rams Guy on Friday, August 3, 2012 6:29 AM

gsrrman

On Hunter Harrison thread members were talking about other mergers (e.g. CP and KCS) which would not  work.  So I was thinking how about a merger of NS and KCS.  KCS gets direct access to the northeast and southeast and NS gets access to the midwest , suthwest and Mexico.  Very little if any duplicte track and would make a good contiguous rairaod.  What are your thoughs on this merger?

 

 

How would CPRS + KCS NOT work?  The only way to even make a combination with NS worthwhile would be to have CPRS PLUS KCS. 

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Posted by ccltrains on Friday, August 3, 2012 7:24 AM

I like the idea of a NS-KCS merger followed by picking up FEC.  That would give them ownership of the line to Miami instead of trackage rights.  With Fortress selling their interest in Rail America they may be interested in parting with FEC.

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Posted by oltmannd on Friday, August 3, 2012 7:51 AM

NS doesn't need KCS .  They already own a good share of the Meridian Speedway.

NS doesn't need PAR.  They already own a good share of the B&M mainline to Ayer and Portland.

NS doesn't need FEC.  They are already joined at the hip at Jacksonville through marketing agreements.

Owning them would drain the treasury of money needed for the Crescent Corridor.  It also comes with the headache of integration.  It would provide little new business and provide few cost savings.  The only real benefit would be you'd get more control over operations - but that likely wouldn't mean much better service.  The current mgt isn't dopey.

-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/

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Posted by jeaton on Friday, August 3, 2012 8:26 AM

DwightBranch

 jeaton:

A NS/KCS merger would be a big benefit to CSX.

 

How do you mean, that it wouldn't work?

No, it would work just fine, except for the part where BNSF and UP decide who their best friend is when it comes to a partner for traffic moving east and west.

Other than that see oltmannd's comments above.

"We have met the enemy and he is us." Pogo Possum "We have met the anemone... and he is Russ." Bucky Katt "Prediction is very difficult, especially if it's about the future." Niels Bohr, Nobel laureate in physics

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Posted by Paul_D_North_Jr on Friday, August 3, 2012 3:54 PM

oltmannd
  [snipped - PDN.]  . . . NS doesn't need FEC.  They are already joined at the hip at Jacksonville through marketing agreements.

Owning them would drain the treasury of money needed for the Crescent Corridor.  It also comes with the headache of integration.  It would provide little new business and provide few cost savings.  The only real benefit would be you'd get more control over operations - but that likely wouldn't mean much better service.  The current mgt isn't dopey.

Same could - and should - be said about many other possible railroad mergers and acquisitions, so this bears repeating.  Much the same results can be achieved without the usual hassles if the managements, marketing, and operating folks of both railroads can learn to and actually do "play nice together".

- Paul North.  

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Posted by tdmidget on Saturday, August 4, 2012 7:07 PM

Since the STB has said that there will be no more Class 1 mergers,  I would guess that N&W 611 running up Saluda Mountain is a lot more likely.

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Posted by oltmannd on Monday, August 6, 2012 7:59 AM

jeaton

 

 DwightBranch:

 

 

 jeaton:

A NS/KCS merger would be a big benefit to CSX.

 

 

How do you mean, that it wouldn't work?

 

No, it would work just fine, except for the part where BNSF and UP decide who their best friend is when it comes to a partner for traffic moving east and west.

 

Other than that see oltmannd's comments above.

CSX sold out to BNSF a couple of years ago, letting them get to Atlanta from Birmingham.  This sucked all the BNSF interchange intemodal traffic off NS/KCS.  NS now moves all the E/W intermodal traffic over the UP at Shreveport.

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Posted by cptrainman on Monday, August 6, 2012 2:34 PM

Hey you guys. Stop treading on my territory. Wink

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Posted by beaulieu on Tuesday, August 7, 2012 3:46 PM

When Linda Morgan as Chairman of the STB imposed the moratorium on merger applications KCS was given a pass. Of course that was a long time ago.

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Posted by dakotafred on Tuesday, August 7, 2012 5:53 PM

Hey, all, that moratorium was for a term -- 18 months? -- that expired years ago. If there have been no more applications, that's been the rails' choice.

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