Agent kid,
In the newswire story, Burkhart said that their obligations had exceeded their assets or something to that effect. What happens now that MM&A has no way to ever pay off this debt?
George
AgentKid Railroad files for bankruptcy after Quebec tragedy http://www.ctvnews.ca/railroad-files-for-bankruptcy-after-quebec-tragedy-1.1401613 Bruce
http://www.ctvnews.ca/railroad-files-for-bankruptcy-after-quebec-tragedy-1.1401613
Bruce
Hardly shocking. What's next? Will CN or CP buy MMA's remnants for next to nothing and get the cars rolling again?
Stu
Streamlined steam, oh, what a dream!!
RastafarrWill CN or CP buy MMA's remnants for next to nothing and get the cars rolling again?
This has been a big topic on Canadian railway forums. The consensus is, CP sold off the line in 1990 for very sound business reasons; it was losing money. Obviously nothing has changed since then.
So shovel the coal, let this rattler roll.
"A Train is a Place Going Somewhere" CP Rail Public Timetable
"O. S. Irricana"
. . . __ . ______
AgentKidCP sold off the line in 1990 for very sound business reasons; it was losing money. Obviously nothing has changed since then.
Not to be contrary, I'm simply curious. Does the massive growth of oil-by-rail not change that? I understood that this new source of rail traffic headed for refineries in NB had basically saved MMA's bacon. Prior to the explosion, that is...
RastafarrDoes the massive growth of oil-by-rail not change that?
MN&A needed the oil by rail business to last for a number of years so they could afford to gradually upgrade their ROW and locomotives. As was suggested by others, when these shortlines suddenly find themselves with an opportunity for new business hauling dangerous commodities, they should be required to look long and hard at their existing infrastructure before accepting the risk. IMO, when the final report is released, I expect there will be a recommendation for minimum ROW standards. Something like a minimum capability of 25 mph, even if the RR chooses to not operate at that speed. This will separate the wheat from the chaff in terms of companies with the financial ability to handle these type of risks.
Unfortunately this is going to put some industries and towns in the position of either having to make their own financial investments, or pay considerably higher freight rates, which will cause inflation for everybody.
One of the large Canadian pipeline companies will be building a pipeline to New Brunswick, as reported in NewsWire. It will be operational in 5 years. About the time they might finish upgrading the MM&A, it will loose any crude traffic.
http://trn.trains.com/en/Railroad%20News/News%20Wire/2013/08/TransCanada%20proceeds%20with%20Energy%20East%20Pipeline.aspx
Burkhart & MM&QA says no more oil transport ? ?
http://www.railwayage.com/index.php/freight/short-lines/mma-ceases-crude-by-rail-haulage.html?channel=94
The Railway Age article cited above says MM&A will refuse to transport crude oil now. How will it move in the time between now and when the new pipeline is built in 5 years? Can someone speculate on what route it will take now that MM&A won't move it?
overall The Railway Age article cited above says MM&A will refuse to transport crude oil now. How will it move in the time between now and when the new pipeline is built in 5 years? Can someone speculate on what route it will take now that MM&A won't move it? George
The point about MM&A refusing to haul oil is now moot with their bankruptcy filing, reorganization is highly unlikely. The most likely result is that the current shareholders will be wiped out, and somebody else will buy and operate all or part of the MM&A. Current front runner to buy the trackage is Irving LTD. Note that this is a separate company from Irving Oil. They own the connecting railroad that finishes the haul of oil from Brownville Jct, ME to St. John, NB. Their reason to buy is that it would give them a connection to CP and pricing leverage against CN.
Note that there are two large secured creditors ahead of any accident claimants. First is the FRA for an approximately $27 million RRIF loan(originally $30 million). Second the Wheeling & Lake Erie has a $6 million Line of Credit Loan to MM&A which is secured.
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