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Mergers who would survive; who would not

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Posted by gabe on Thursday, May 5, 2005 4:24 PM
QUOTE: Originally posted by cbq9911a

How about taking it from another angle - considering the components of BN:

Burlington - Alive due to Powder River coal.
Great Northern - Alive
Northern Paciic - Dead
Frisco - Don't Kmow
SP&S - Dead as a company, but alive as a part of GN.


I can't argue with that. But it would really affect the way things were shaped on the East end.

Gabe
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Posted by cbq9911a on Thursday, May 5, 2005 4:06 PM
How about taking it from another angle - considering the components of BN:

Burlington - Alive due to Powder River coal.
Great Northern - Alive
Northern Paciic - Dead
Frisco - Don't Kmow
SP&S - Dead as a company, but alive as a part of GN.
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Posted by gabe on Thursday, May 5, 2005 3:25 PM
Dan,

(1) I hope Mark does come in and kick me around on this one. I am kind of missing those sorts of beatings--they are very educational.

(2) I don't see how Conrail would have died. Wasn't it doing fairly well before the buyout? It certainly has an attractive core.

(3) When I say don't make it I mean liquidated in bankruptcy. So that would probably affect the survivors, who would probable be doing the buying.

Thanks for responding.

Gabe
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Posted by dharmon on Thursday, May 5, 2005 3:09 PM
Hmmm...no expert either.....and when MWH comes in and slaps us around.......oh well....I can see several of the road merged with different partners...

(1) Southern RR - Survivor but would eventually absorb someone else (Family lines?)
(2) N&W RR - survived
(3) Conrail - Agree with Don
(4) L&N & (5) Seaboard RR - I still see the Family Lines occuring ..then possibly as a part of SRR.
(6) C&O - survived barely, B&O a part of Conrail maybe?
(7) ICG - maybe with KCS
(8) Wisconsin Central - no call
(9) UP - alive and kicking
(10) Mopac - alive, picking up part of SP TX routes
(11) Western Pacific - probably dead
(12) Santa Fe & (13) Southern Pacific - I'd have predicted eventual merger..but spin off routes as a part of the deal (UP, MoPac, BN)
(14) Frisco - no call
(15) BN - alive - can you say powder river
(16) Chicago North Western - dead
(17) CN - alive
(18) SOO - dead ..agree with Don ...a part of CP's gains in the US

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Posted by gabe on Thursday, May 5, 2005 2:52 PM
QUOTE: Originally posted by oltmannd

Okay. Let me try:

(1) Southern RR - survived. The CNO&TP plus growth in the south should have been enough to keep going
(2) N&W RR - survived. COAL! plus Detroit
(3) Conrail - A close call, but having North Jersey Intermodal franchise + growth in intermodal might have been just enough
(4) L&N - survived, maybe in shrunken state - coal
(5) Seaboard RR - with the ACL, probably survived. w/o maybe not.
(6) C&O - with the B&O dead, w/o the B&O, maybe there is enough coal to balance out competitive disadvantage with N&W
(7) ICG - belly up
(8) Wisconsin Central - you mean the original SOO - probably belly up, or at least in a much smaller state
(9) UP - they will never die, no matter how badly they screw up - great routes and markets
(10) Mopac - live as long as they have the UP on the west end
(11) Western Pacific - probably dead - bridge routes do poorly in dereg environment
(12) Santa Fe - Intemodal franchise Chic - LA should be enough to keep them going
(13) Southern Pacific - alive, but much shrunken. UP and ATSF eat them alive
(14) Frisco - same as Mopac
(15) BN - alive - can you say powder river
(16) Chicago North Western - alive unless UP finds a better way from Omaha to Chic - which they just might
(17) CN - alive
(18) SOO - the old MILW - dead

I didn't give this too much thought. Tell me where I'm all wet. I won't be offended!!!


Don,

I wouldn't be so arrogant to call you all wet. I consider your guess at least as good, probably better than mine.

I largely agree with your contentions; but here are the few areas where I disagree:

(3) I think Conrail survives, and survives well.
(5) I completley agree with your Seaboard contention; but I was including the ACL--I definitely think it could not have survived without the ACL.
(6) I don't think the C&O makes it under any circumstance--I think it is part of CSX's problem right now.
(7) I think the IC survives--just like it did, it sheds its unprofitable lines and keeps its attractive trunk. In fact, I think the IC is the model for saying the consolidation of the industry was unnecessary.
(8) I think the Wisconsin Central can and did survive.
(13) I think the SP is the model--aside from the WP--for the line that couldn't make it. You can argue that UP might not be able to pull it out of its mess. I also think the industry would have been better off if the SP was disolved in bankruptcy rather than merger.

Remember, when I say not survive, I am not necessarily contending a single mile of track would be pulled up. I just mean it wouldn't survive under its own flag and its lines would be divided/liquidated in bankruptcy.

Thanks for responding,

Gabe
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Posted by gabe on Thursday, May 5, 2005 2:42 PM
QUOTE: Originally posted by spbed

In the case of the UPRR/CNW you are aware that the UPRR was a large shareholder in the CN & W long before they merged? [:o)][:)][:p]

Originally posted by gabe
[


Their engines were yellow and green and their wheels went round and round too. In other words, so?

[8D][:p][:D][:o)][:o)][:o)]
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Posted by oltmannd on Thursday, May 5, 2005 2:41 PM
Okay. Let me try:

(1) Southern RR - survived. The CNO&TP plus growth in the south should have been enough to keep going
(2) N&W RR - survived. COAL! plus Detroit
(3) Conrail - A close call, but having North Jersey Intermodal franchise + growth in intermodal might have been just enough
(4) L&N - survived, maybe in shrunken state - coal
(5) Seaboard RR - with the ACL, probably survived. w/o maybe not.
(6) C&O - with the B&O dead, w/o the B&O, maybe there is enough coal to balance out competitive disadvantage with N&W
(7) ICG - belly up
(8) Wisconsin Central - you mean the original SOO - probably belly up, or at least in a much smaller state
(9) UP - they will never die, no matter how badly they screw up - great routes and markets
(10) Mopac - live as long as they have the UP on the west end
(11) Western Pacific - probably dead - bridge routes do poorly in dereg environment
(12) Santa Fe - Intemodal franchise Chic - LA should be enough to keep them going
(13) Southern Pacific - alive, but much shrunken. UP and ATSF eat them alive
(14) Frisco - same as Mopac
(15) BN - alive - can you say powder river
(16) Chicago North Western - alive unless UP finds a better way from Omaha to Chic - which they just might
(17) CN - alive
(18) SOO - the old MILW - dead

I didn't give this too much thought. Tell me where I'm all wet. I won't be offended!!!

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

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Posted by spbed on Thursday, May 5, 2005 2:40 PM
In the case of the UPRR/CNW you are aware that the UPRR was a large shareholder in the CN & W long before they merged? [:o)][:)][:p]

Originally posted by gabe
[

Living nearby to MP 186 of the UPRR  Austin TX Sub

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Mergers who would survive; who would not
Posted by gabe on Thursday, May 5, 2005 2:14 PM
Fairly regularly, people complain about the effects of the last 20 or so years of mergers. I have even been known to do it myself every now and then. My complaint is there are not enough regional railroad spinoffs after mergers and the resulting conglomerate is too large to effectively fight off entrepy and manage itself effectively--I would have no problems with mergers if there were more effective regional spinoffs.

But anyway, just to show a balanced approach, I think we should reverse the question: which railroads would have survived had it not been for the mergers:

(1) Southern RR
(2) N&W RR
(3) Conrail
(4) L&N
(5) Seaboard RR
(6) C&O, B&O, and WM
(7) ICG
(8) Wisconsin Central
(9) UP
(10) Mopac
(11) Western Pacific
(12) Santa Fe
(13) Southern Pacific
(14) Frisco
(15) BN
(16) Chicago North Western
(17) CN
(18) SOO

Of course, survival is a relative term. I am convinced that at least 4 of these railroads would not have lived to see 2006 under their own flag. But, then again, I don't see a lot of their track being pulled up in a bankruptcy liquidation.

Gabe

P.S. Because this is a complex question, I am posting another related thread--please read both if you are interested.

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