See linked article in TRAINS Newswire of date @ https://www.trains.com/trn/news-reviews/news-wire/cpkc-and-csx-detail-their-plans-to-connect-their-networks-via-meridian-bigbee-shortline/
The linked article shows and describes with much detail; the plans laid by both CSX and CPKC for their new connection, and service. Via the link provided by the Meridian and Bigbee RR ..
From the description of the future operating plan for interchange, the new plan seems efficient.
It also looks like the new plan will basically relegate the former Gateway Western to permanant branchline status since automotive and merchandise traffic that previously was interchanged in St. Louis will now go to CSX at Myrtlewood, Alabama.
As the STB has to rule on the transaction, I would not be surprised to see CN take another run at the former Gateway Western.
Also, I would not be surprised to see UP ask for CPKC to be responsible for capacity expansions on CPKC's trackage rights through Houston since CPKC is projecting an upswing in traffic both ways as a result of the Meridian & Bigbee acquisition.
It says the new route is 158 miles shorter than the present route via New Orleans. Meaning Montgomery to Shreveport via Meridian is 158 miles shorter than Montgomery to Shreveport via New Orleans?
Wonder how much longer the new route is than a direct route Montgomery to Laredo.
I hope this pays off because CPKC has a lot of debt now.
It is all about the freight avoiding UP. Also the New Orleans delays and mess. This routing may take a couple freights off New Orleans - Mobile - Montgomery. Be easier for Amtrak?
CPKC from Shreveport to NOLA is a relatively low-speed line.
Open Railway Map has the CN line, which parallels CPKC in the heavy industry zone from Baton Rouge to New Orleans, at 40 MPH.
Here is link to an in depth analysis of the proposed take over.
CPKC, CSXT Advance Mexico-Texas-U.S. Southeast Corridor Plan - Railway Age
This won't be a popular opinion, but for a $300 million dollar stake in building the Meridian Speedway, NS should have insisted on the right to keep CSX out completely. CSX had the opportunity to make their own deal with KCS (or a three-way deal with KCS and NS) and didn't pursue it. Why should they now be able to take advantage of a rail route that they played no part in building?
NS invested hundreds of millions of dollars in two joint ventures and now CSX has access or control to both of them. Given CSX's already larger and superior route structure, these are disasterous defeats. Hard to believe how shortsighted and feckless NS has become. They should have acquired both Pan Am and FEC when they had the chance. Now they are permanently ensconced as the second rate carrier in the east.
P.S. This news story discusses how CSX locked NS out from making their own deal with the Louisville & Indiana to gain access to Indianapolis: https://www.trains.com/trn/news-reviews/news-wire/stb-gets-an-earful-about-kcs-ns-meridian-speedway-joint-venture/
Kudos to CSX for knowing how to play hardball. Shame on CSX for getting caught lying to the STB.
kgbw49 It also looks like the new plan will basically relegate the former Gateway Western to permanant branchline status since automotive and merchandise traffic that previously was interchanged in St. Louis will now go to CSX at Myrtlewood, Alabama.
By doing this, CPKC is allowing this part of its Gateway Western traffic to be shorthauled, so the company is losing that revenue. The traffic lost must not amount to much.
- Ed Kyle
ns145 P.S. This news story discusses how CSX locked NS out from making their own deal with the Louisville & Indiana to gain access to Indianapolis: https://www.trains.com/trn/news-reviews/news-wire/stb-gets-an-earful-about-kcs-ns-meridian-speedway-joint-venture/
NS isn't missing much. It has trackage/haulage right to Indianapolis, but for what? There isn't much there, rail-wise. NS predecessor NKP/N&W never had much of a footprint in the city and the company pulled out of the place after deregulation.
Ed Kyle ns145 P.S. This news story discusses how CSX locked NS out from making their own deal with the Louisville & Indiana to gain access to Indianapolis: https://www.trains.com/trn/news-reviews/news-wire/stb-gets-an-earful-about-kcs-ns-meridian-speedway-joint-venture/ NS isn't missing much. It has trackage/haulage right to Indianapolis, but for what? There isn't much there, rail-wise. NS predecessor NKP/N&W never had much of a footprint in the city and the company pulled out of the place after deregulation. - Ed Kyle
I agree, but that wasn't the point that I was trying to make. When CSX put its money into rebuilding the Louisville & Indiana they predicated it on exclusivity - even on a route that NS wouldn't likely attempt to use anyway. NS didn't have as much foresight with the Meridian Speedway and Pan Am Southern joint ventures. They went in cheap with stakes less than 50%, then naively assumed that CSX would never attempt anything in the future. Now CSX is using NS' investments against them.
The reality is if NS would have had any vision, they should have made an offer to buy KCS years ago.
The old merger rules only applied to a combination with KCS.
NS would have been a complete end to end merger of the two smallest US Class I railroads with connections at New Orleans, Meridian and Kansas City.
They might have had to spin off the Gateway Western to CSX or CN.
But they did not have the vision to try to grow that way.
Keith Creel did.
NS-KCS would have been a good match, but UP and BNSF would have reacted very negatively to an invasion of their territory by an eastern road. I don't know if the positives would have cancelled out the negatives.
ns145NS-KCS would have been a good match, but UP and BNSF would have reacted very negatively to an invasion of their territory by an eastern road. I don't know if the positives would have cancelled out the negatives.
Why not split NS between CPKC and CSX?
CMStPnP ns145 NS-KCS would have been a good match, but UP and BNSF would have reacted very negatively to an invasion of their territory by an eastern road. I don't know if the positives would have cancelled out the negatives. Why not split NS between CPKC and CSX?
ns145 NS-KCS would have been a good match, but UP and BNSF would have reacted very negatively to an invasion of their territory by an eastern road. I don't know if the positives would have cancelled out the negatives.
I've heard that UP would like to carve up BNSF with CN, so you might be onto something. Of course the STB would probably stop both transactions based on some preposterous claim of them being anticompetitive.
CMStPnP I hope this pays off because CPKC has a lot of debt now.
10000 feet and no dynamics? Today is going to be a good day ...
traisessive1 They can suffer the consequences of that debt. They're a subpar railway with a CEO that rules with an iron fist. They are still in full-on Hunter Harrison regime mode with employees being treated worse than ever. Compared to CN, they're run backwards and they'll never make that debt up. CN made off laughing with their 700 million dollars they made from 'losing' KCS. CN made 700 million off that and watched CP put themselves into 30+ billion in debt.
Just in case anyone is curious. I checked my 1972 Moody's Transportation Manual and 1969 Official Guide.
M&B RR was 100% owned at that time by American Can. In 1971 they had 89 employees. Revenue was $2.6million and net income was $.489m with a dandy OR of 53.23%. The balance sheet showed $5.3m in assets with over $2.6m in cash. Cash cow for American Can.
By the end of the decade revenues jumped to $5.1m but the OR had skyrocked to 89.4% with a small net operating income of $.5m. Assets had jumped to $19m as they had taken on equipment. There was over $12m in general equipment obligations and only $.125m in cash. The cash cow had been milked dry.
The 1969 OG showed train 32 leaving Meridian at 1045pm, arriving in Myrtlewood at 145 (51 miles) and returning at 230am with arrival in Meridian at 5am. These trains were "freight service only".
Not sure what the recent history of the line is/was.
Ed
MP173Just in case anyone is curious. I checked my 1972 Moody's Transportation Manual and 1969 Official Guide. M&B RR was 100% owned at that time by American Can. In 1971 they had 89 employees. Revenue was $2.6million and net income was $.489m with a dandy OR of 53.23%. The balance sheet showed $5.3m in assets with over $2.6m in cash. Cash cow for American Can. By the end of the decade revenues jumped to $5.1m but the OR had skyrocked to 89.4% with a small net operating income of $.5m. Assets had jumped to $19m as they had taken on equipment. There was over $12m in general equipment obligations and only $.125m in cash. The cash cow had been milked dry. The 1969 OG showed train 32 leaving Meridian at 1045pm, arriving in Myrtlewood at 145 (51 miles) and returning at 230am with arrival in Meridian at 5am. These trains were "freight service only". Not sure what the recent history of the line is/was. Ed
I suspect M&B in the decade of the 70's succumbed to the Wall Street inspired 'Incentive Per Diem' purchase of box and other cars to cash in on the Incentive Per Diem regulations the ICC authorized for perceived car shortages and the Class 1 carriers desires to make their Capital Investments in higher returning things.
Never too old to have a happy childhood!
Good point. The Moody's for small railroads such as M&B does not show much info...just the basics.
Checking back, in 1971 M&B shows 4 locomotives, 2 cabooses, 25 flatcars, 43 hoppers, and 57 box cars
Then in 1979: 4 locomotives, 2 cabooses, 35 flats, 43 hoppers, 47 boxcars.
My guess is those 1979 numbers are not accurate as assets exploded over the decade.
Revenue doubled but assets quadrupled and OR rose dramatically. Perhaps American Can started moving product by truck rather than rail during the decade. My guess is the reason American Can owned it was an online factory in which they controlled the transportation in and out....just a guess.
edit: just did a search for American Can and Wikipedia listed all factories...none in Mississippi.
ed
I just read the Trains article on the Shreveport yard and the issues they are facing.
Sounds like this will stuff another 100 cars per day thru that facility, perhaps more.
Quite an informative article on issues facing terminal facilities.
Shreveport is the hub of the CPKC in the southeast.
The Meridian Speedway and the new extension to CSX at Myrtlewood (Myrtlewood Speedway?) heads east.
The line to Dallas heads west.
The line to New Orleans heads southeast.
The line to Beaumont, Houston and Mexico heads south.
The line to Kansas City, Chicago and Canada heads north.
In addition to stuffing more cars through the yard, the bypass mainline tracks are going to be just as important - maybe more important - for system-wide speed.
TRAINS Newswiref this date 11/03/2023 has the next chapter of the union between the CPKC>CSX and MNBRR that will form the linlk between SW and SE .
Hearing is set forn Nov 20th,2023
See linked article @ https://www.trains.com/trn/news-reviews/news-wire/federal-regulators-set-schedule-for-review-of-cpkc-and-csx-acquisition-and-operation-of-meridian-bigbee-short-line/
MP173 Good point. The Moody's for small railroads such as M&B does not show much info...just the basics. Checking back, in 1971 M&B shows 4 locomotives, 2 cabooses, 25 flatcars, 43 hoppers, and 57 box cars Then in 1979: 4 locomotives, 2 cabooses, 35 flats, 43 hoppers, 47 boxcars. My guess is those 1979 numbers are not accurate as assets exploded over the decade. Revenue doubled but assets quadrupled and OR rose dramatically. Perhaps American Can started moving product by truck rather than rail during the decade. My guess is the reason American Can owned it was an online factory in which they controlled the transportation in and out....just a guess. edit: just did a search for American Can and Wikipedia listed all factories...none in Mississippi. ed
This history Meridian and Bigbee Railroad (american-rails.com) says the M&B was owned by James River Corporation from the 1960s until sold to G&W. I'm not going to dispute Moody's, however reading the Wikipedia article it states that James River Corp bought American Can's paper operation in 1982.
I bet American Can owned M&B for it's paper operations, not tin cans. I'm guessing that maybe James River picked up the M&B in the 1982 and the 1960s date is a slip of the finger when the American Rails article was written.
Jeff
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