With the PTC install the railroads have a deadline to make and even EHH and his disdain for capital improvements can not stop that one from happening at all. He attitude so reminds me of and this one is a current CEO the United CEO and how they have handled the passengers issues recently. He is tone deaf to everything that happens to his railroad in his pursuit to his holy grail of a below 60% OR. He could care less of customer complaints labor issues just drive it down then I'm out of here and leave the pieces for the next guy to pick up.
There are several unknowns about what Hunter is doing. Here on the A&WP subdivision CSX is installing PTC satellite antenna and other equipment from Palmetto - LaGrange at least. CSX is running very fast trains with extra power on front to maintain speed and then very slow trains. How this affects PTC implementation is unknown ?
Maybe more like a cowboy interrupting a 'train robbery' - might not win, but they'll know he was there.
Wonder if a sheriff-type will eventually show up . . . ?
Paul_D_North_Jr I can't quickly find the thread that's mainly about about E. Hunter Harrison being hired by CSX, so I'll post this here as being closer than the other 2 current ones: John Fishwick Takes on Railroad Mogul in “CSX Train Robbery” http://baconsrebellion.com/john-fishwick-csx-train-robbery/ Short version: It's about lawyer John P. Fishwick, Jr. (yes, a son of former N&W President John Fishwick) objecting to EHH"s pay package, calling it "repulsive" and "exhorbitant", having a Facebook page on it, etc.: "He has taken up a new cause, blocking the out-sized compensation package of Hunter Harrison, a 72-year-old executive hired by CSX Corp. As a CSX shareholder, Fishwick objects to the company reimbursing Harrison $84 million in compensation he forfeited by leaving Canadian Pacific." - PDN.
I can't quickly find the thread that's mainly about about E. Hunter Harrison being hired by CSX, so I'll post this here as being closer than the other 2 current ones:
http://baconsrebellion.com/john-fishwick-csx-train-robbery/
Short version: It's about lawyer John P. Fishwick, Jr. (yes, a son of former N&W President John Fishwick) objecting to EHH"s pay package, calling it "repulsive" and "exhorbitant", having a Facebook page on it, etc.:
"He has taken up a new cause, blocking the out-sized compensation package of Hunter Harrison, a 72-year-old executive hired by CSX Corp. As a CSX shareholder, Fishwick objects to the company reimbursing Harrison $84 million in compensation he forfeited by leaving Canadian Pacific."
- PDN.
Seems as if Mr. Fishwick is about to fling a polecat into the middle of the family picnic.
[Just what this 'affair' needs, another side-show.]
SD70M-2Dude cprtrain True that there are different management styles. HH was a disaster at CP. They lost some major accounts in the last few months due to poor service. He ran the railroad into the ground, destroyed service and morale. It will take CP a decade to recover. The employees who were sacked have had their lives destroyed. May he rot in hell. +1
cprtrain True that there are different management styles. HH was a disaster at CP. They lost some major accounts in the last few months due to poor service. He ran the railroad into the ground, destroyed service and morale. It will take CP a decade to recover. The employees who were sacked have had their lives destroyed. May he rot in hell.
True that there are different management styles. HH was a disaster at CP. They lost some major accounts in the last few months due to poor service. He ran the railroad into the ground, destroyed service and morale. It will take CP a decade to recover. The employees who were sacked have had their lives destroyed. May he rot in hell.
+1
+1 from me as well.
Murphy Siding PCS?
PCS?
-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/)
cprtrainHe ran the railroad into the ground, destroyed service and morale.
And this goes back to his want/need to wring every last dollar out of the railroad - and into the hands of the investors.
Larry Resident Microferroequinologist (at least at my house) Everyone goes home; Safety begins with you My Opinion. Standard Disclaimers Apply. No Expiration Date Come ride the rails with me! There's one thing about humility - the moment you think you've got it, you've lost it...
Greetings from Alberta
-an Articulate Malcontent
Interesting article in Railway Age about live in a post-EHH Canadian Pacific
http://www.railwayage.com/index.php/freight/class-i/precision-railroading-with-a-humane-face.html?channel=50
Ulrich At CN Claud Mongeau came after EHH and Luc Jobin recently took over from Mongeau due to the former's health issues. Both of EHH's successors at CN could arguably be called planters, in keeping with the above analogy. There's a time to cut and there's a time to plant.. and as far as business goes there are CEO's who specialize in one or the other. Rarely does one find an individual who is equally adept at both. Some CEO's are agents of rapid change while others are more mainstream caretaker types who grow the business without rocking the boat too much. We need both types.
At CN Claud Mongeau came after EHH and Luc Jobin recently took over from Mongeau due to the former's health issues. Both of EHH's successors at CN could arguably be called planters, in keeping with the above analogy. There's a time to cut and there's a time to plant.. and as far as business goes there are CEO's who specialize in one or the other. Rarely does one find an individual who is equally adept at both. Some CEO's are agents of rapid change while others are more mainstream caretaker types who grow the business without rocking the boat too much. We need both types.
Thanks to Chris / CopCarSS for my avatar.
schlimm oltmannd schlimm oltmannd schlimm: EHH knows a lot more about management than ANY of us. Wait and see. If CSX were so efficient already, why is its OR so high? It's OR isn't high. Actually, it's at an all time low over the past couple years. 2016 CSX operating ratio = 69.4 percent. 2016 CP record-low operating ratio = 58.6 percent Apples and oranges. Length of haul, traffic mix, highway competition, Labor rate with fringe. All different. What was CSX's OR in the 1990's when EHH started doing his thing? Around 90. Now below 70. 20 point drop in 20 years. Just lucky? In 2010, prior to EHH, CP's OR was 81.3. Over a 20 point drop in 5.5 years. Just lucky?
oltmannd schlimm oltmannd schlimm: EHH knows a lot more about management than ANY of us. Wait and see. If CSX were so efficient already, why is its OR so high? It's OR isn't high. Actually, it's at an all time low over the past couple years. 2016 CSX operating ratio = 69.4 percent. 2016 CP record-low operating ratio = 58.6 percent Apples and oranges. Length of haul, traffic mix, highway competition, Labor rate with fringe. All different. What was CSX's OR in the 1990's when EHH started doing his thing? Around 90. Now below 70. 20 point drop in 20 years. Just lucky?
schlimm oltmannd schlimm: EHH knows a lot more about management than ANY of us. Wait and see. If CSX were so efficient already, why is its OR so high? It's OR isn't high. Actually, it's at an all time low over the past couple years. 2016 CSX operating ratio = 69.4 percent. 2016 CP record-low operating ratio = 58.6 percent
oltmannd schlimm: EHH knows a lot more about management than ANY of us. Wait and see. If CSX were so efficient already, why is its OR so high? It's OR isn't high. Actually, it's at an all time low over the past couple years.
schlimm: EHH knows a lot more about management than ANY of us. Wait and see. If CSX were so efficient already, why is its OR so high?
It's OR isn't high. Actually, it's at an all time low over the past couple years.
2016 CSX operating ratio = 69.4 percent. 2016 CP record-low operating ratio = 58.6 percent
Apples and oranges. Length of haul, traffic mix, highway competition, Labor rate with fringe. All different.
What was CSX's OR in the 1990's when EHH started doing his thing? Around 90. Now below 70. 20 point drop in 20 years. Just lucky?
In 2010, prior to EHH, CP's OR was 81.3. Over a 20 point drop in 5.5 years. Just lucky?
No. He just did what CSX, NS, BNSF and UP did - which is the same as what he did at IC and CN.
It's all done. Everywhere. Everyone has done PCS. EHH gets credit for doing it first and doing it the most. But, there's no "there" there at CSX to do!
Creel obviously recognizes that the culture within CP has been tainted by Harrison's obsession to cut costs. It will take years to improve morale within the company. It will cost the company millions to settle all the lawsuits it faces over wrongful dismissal.
SD70M-2Dude Ulrich I get that.. and I'm no fan of bad behavior either. Nor would I advocate sucking it up. Personally it just doesn't touch me.. (unless its my wife or kids doing the misbehaving). Unions obviously don't change rude and insensitive behaviors. so long as the bad "behaver" does his/her job and contributes to the bottom line without hurting anyone then I'll tolerate it. Lots of different perosnalities in the workplace, and you're not going to change anyone so may as well not let it bother you. OH yeah, and to answer your question, there's really nothing gained by bad bahavior like this.. but what are you going to do.. people are the way they are. True enough, and I believe that it is not just that you gain nothing from this kind of attitude but also that it creates unnecessary negative changes in how people work. An example from CN (and presumably CP) is that people do whatever they can to avoid spending time at work (filing notice for rest on the road, taking the maximum hours off that they can when they get home, taking as many personal days off as they can, all of which are legal and provided for in our collective agreement), with the end result being that more employees are needed to run the same number of trains, or that trains sit waiting for crews to come available. Not a very efficient use of assets (workers), but cracking the whip only goes so far...
Ulrich I get that.. and I'm no fan of bad behavior either. Nor would I advocate sucking it up. Personally it just doesn't touch me.. (unless its my wife or kids doing the misbehaving). Unions obviously don't change rude and insensitive behaviors. so long as the bad "behaver" does his/her job and contributes to the bottom line without hurting anyone then I'll tolerate it. Lots of different perosnalities in the workplace, and you're not going to change anyone so may as well not let it bother you. OH yeah, and to answer your question, there's really nothing gained by bad bahavior like this.. but what are you going to do.. people are the way they are.
I get that.. and I'm no fan of bad behavior either. Nor would I advocate sucking it up. Personally it just doesn't touch me.. (unless its my wife or kids doing the misbehaving). Unions obviously don't change rude and insensitive behaviors. so long as the bad "behaver" does his/her job and contributes to the bottom line without hurting anyone then I'll tolerate it. Lots of different perosnalities in the workplace, and you're not going to change anyone so may as well not let it bother you. OH yeah, and to answer your question, there's really nothing gained by bad bahavior like this.. but what are you going to do.. people are the way they are.
True enough, and I believe that it is not just that you gain nothing from this kind of attitude but also that it creates unnecessary negative changes in how people work. An example from CN (and presumably CP) is that people do whatever they can to avoid spending time at work (filing notice for rest on the road, taking the maximum hours off that they can when they get home, taking as many personal days off as they can, all of which are legal and provided for in our collective agreement), with the end result being that more employees are needed to run the same number of trains, or that trains sit waiting for crews to come available.
Not a very efficient use of assets (workers), but cracking the whip only goes so far...
There's a happy balance in there somewhere. Overly nice and respectful is almost as bad as chef Gordon Ramsey rude. A good manager walks that fine line between the two.
Yes. It is apples and apples. They use GAAP and financial statements take all their US dollar revenues and expenses and convert them to Canadian dollars to combine with their Canadian revenues and expenses.
See Note 1 to the CN financial statements:
http://cn.ca/-/media/Files/Investors/Investor-Financial-Quarterly/Investor-Financial-Quarterly-2016/Year-End-Results/2016-Full-Year-Statements-en.pdf?la=en
See Note 1 to the CP financial statements:
http://s21.q4cdn.com/736796105/files/doc_financials/Annual-Report/2016/March-9/CP-Annual-Report-2016.pdf
There can be a gain or loss on the exchange rate. It is usually a gain as the Canadian dollar is usually lower than the US dollar, so converting one US dollar to Canadian currency yields $1+ Canadian dollars. But that difference of both revenues and expenses for the "+" part is reported in Other Income.
That means their Operating Ratio calculation is apples to apples in terms of how much Operating Revenue is used up by Operating Expenses.
schlimm BaltACD In 2010, prior to EHH, CP's OR was 81.3. Over a 20 point drop in 5.5 years. Just lucky? Canadian exchange rate. Irrelevant.
BaltACD In 2010, prior to EHH, CP's OR was 81.3. Over a 20 point drop in 5.5 years. Just lucky? Canadian exchange rate.
Irrelevant.
There is no denying that CP's operating ratio dropped dramatically under EHH, but that was very easy to do, given how the previous management ran the railroad. Everyone in the lower ranks could see the glaring inefficiencies and stupid decisions, and initially welcomed the chance to run the railway properly, hoping that maybe EHH had mellowed from his vindictive attitude at CN.
I suspect any dramatic lowering of the OR at CSX will be good for NS, as they pick up disgruntled shippers. And that will be to the long term detriment of CSX.
The Canadian exchange rate is of course irrelevant.
kgbw49 Financial accounting regulations require conversion of revenues and expenses to a uniform dollar value. In the case of CP and CN when you read their financial reports they are in Canadian dollars.
Financial accounting regulations require conversion of revenues and expenses to a uniform dollar value. In the case of CP and CN when you read their financial reports they are in Canadian dollars.
Of course! But, "twelve of the 60 blue-chip companies in the S&P/TSX 60 index currently use U.S. GAAP, including BlackBerry Ltd., Magna International Inc., Canadian National Railway Co. and Canadian Pacific Railway Ltd." So it is apples and apples.
http://www.theglobeandmail.com/report-on-business/international-accounting-standards-best-for-canada-executive-says/article23960882/
C&NW, CA&E, MILW, CGW and IC fan
BaltACDIn 2010, prior to EHH, CP's OR was 81.3. Over a 20 point drop in 5.5 years. Just lucky? Canadian exchange rate.
Canadian railroads have different requirements with regards to taxes and benefits which cause the accounting for operationg ratios to bedifferent on different sides of the border. The Canadian rules of the game oare diffeernt than the US rules of the game. You can compare trends of OR's or OR's between roads on the same side of the border, but comparing a US road's OR to a Canadian road's OR, the Canadian road with have a lower for an equivalent operation.
Dave H. Painted side goes up. My website : wnbranch.com
Canadian exchange rate.
Never too old to have a happy childhood!
zugmann Guess we'll see if he has any other tricks up his sleeve, or if he is a one-trick pony that won't be able to deliver. Stay tuned?
Guess we'll see if he has any other tricks up his sleeve, or if he is a one-trick pony that won't be able to deliver. Stay tuned?
It's a very good one trick that pony learned. Other's horses have learned the trick, though. It is no longer a new or unique trick.
As you know, part of the problem with the RR today is management turnover. Can EHH teach the young'uns better and faster? Or, will he merely alienate them? We shall see....
It's been fun. But it isn't much fun anymore. Signing off for now.
The opinions expressed here represent my own and not those of my employer, any other railroad, company, or person.t fun any
oltmanndIt's OR isn't high. Actually, it's at an all time low over the past couple years. Why? Because in the past decade, CSX has implemented an operating plan based on the same principles as EHH's opeartions at IC, CN and CP. NS, UP and BNSF have all done the same, as well.
NS, UP and BNSF have all done the same, as well.
And there may well lie the rub, if you will.
EHH may be expected to generate the same type of returns he got at IC, CN, and CP, but will have to do so after many of the strategies he used at those roads have already been applied at CSX.
It'll be an uphill battle, and may lead to even more drastic measures in order to achieve the goal.
Given that the other railroads are still recovering from what he did to them (per previous posts), things may not bode well for CSX.
schlimmEHH knows a lot more about management than ANY of us. Wait and see. If CSX were so efficient already, why is its OR so high?
Why? Because in the past decade, CSX has implemented an operating plan based on the same principles as EHH's opeartions at IC, CN and CP.
Perhaps the only thing EHH likes to do that the other roads don't is run "general purpose" trains. That is, there intermingle types of traffic on trains. For example, filling out a merchandise train with a block of coal, or moving a block of merchandise traffic on an intermodal train.
That's a tough one because it requires you have the time, space and capacity on your network to accomodate the extra work in the train schedule. Exactly how much of this he'll be able to implement on CSX will be the interesting thing to watch.
Given that his style is much more authoritative and detail oriented, it'll be interesting to see if that will help close the gap between the operating plan and actual performance.
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