NEWS: BNSF buys the Du Quoin-St. Louis line from CN

[Anonymous]

QUOTE: Originally posted by AMTK200

I think this is only the 1st of many moves similar to this one.

Only a Prelude to the next (perhaps the last) act in the merger game; Early motions for market advantage, economy of movement, geographical reach, closeness to friendly connections (read future partners), Maximization of traffic on a given route(s), flexability on shared track and rights, and exposure to open and growing markets. The fat lady's not warming up yet but you can bet she is at the stage door.

[Anonymous]

I think this is only the 1st of many moves similar to this one.

[MP173]

Sam:

I think you are correct. Since the STB is not going to allow mergers (for awhile) there may be a ru***o fill in the map with trackage rights and outright purchases of certain lines.

The CN / BNSF deal seems that way. Ok, we will give you control of Vancouver in exchange for capacity in Chicago and trackage rights into Memphis. CN gets what it wants, BNSF gets what it wants and CN fills in on under utilized trackage. Smart business.

ed

[samfp1943]

ed.. As I said the options are what makes this area worth watching.. BY tying into the Memphis/Birmingham main [the former Frisco] at a point East of Memphis [ as mentioned from Jackson, Tn to either Holly Springs, Ms [via either a route purchase or trackage rights] or to go down the former GM&O to Corinth,Ms. or even to the division point at Amory,Ms. Even though the BNSF tracks end in Birming ham and Montgomery, they could utilize trackage rights on into Southeast ports. I think it is all about options now, where BNSF is concerned in their races with the other Class 1's.
Sam

[MP173]

Sam:

Thanks for the clarification. I agree there wasnt anything in the release about the sale of the Duquoin line.

I dont know how much traffic moves from the Northwest to the Southeast, I would guess there is some, nor do I know if there is much from Twin Cities down thru Memphis. My guess is there is a possibility of intermodal moving from PNW to the Southeast, particularly as the ports at Long Beach become more and more crowded.

With the BNSF and CN crossing at Centralia, they could shoot their Galesburg - Memphis freight down the Beardstown line to CN at Centralia and then to Memphis. That would appear, at least on paper, a superior routing than Galesburg - St. Louis then down the old Frisco River line to Memphis.

I keep thinking that the Beardstown line (Galesburg to Paducah) which now handles coal and perhaps a manifest train would be a great way to skip past not only Chicago but St. Louis.

Just thinking out loud.

ed

[samfp1943]

MP173.
.According to the first post in this, by emd_SD_60 there was a purchase, and in the post from the BNSF you could get the understanding that it was a senario of trackage right grants plus the necessary infrastructure upgrade to do what ever they intend to do with it.. so I guess for now it is whatever the individual want to read into those aspects..[%-)]
My point in bringing up my response is that there are a number of options available to the BNSF that would give them a shorter run into the Southeast by a diagonal route through the DuQuoin, Il area. And it could conceivably be a way for the BNSF to gain some advantage[ not to mention shorter route miles] over the KCS/NS route through Meridian, Ms/Shreveport.La. trackage agreement to the southeast . Certanily, it will bear some watching, for a potentially new routing arrangement.. Who knows how it will turn out, if at all? But interesting to speculate.
The Memphis /Corwith conection is anybody's guess. The UP completed their huge Intermodal facility about 5 yr ago, West of the Marion. Ark area and the BNSF has not only the Tennessee Yard {former Frisco, but the Yale Yd In Memphis, the Harvard Yard at Marion Ark, now utilized as an adjunct Intermodal facility with Tennesse Yard facilities] and the CN has the large Johnson Yard facilities [former Illinois Central] and there was some talk of the IC?CN building a strictly Intermodal facility adjacent to the JOhnson Yard in the Insley Bottoms area of the Rivergate Industrial Park, do not know if that happened? But surely the Combination of CN/BNSF, in particular, through the mid america corridor seems to be popping with opportunities to create new routes and corridors. As I said it will bear watching for those interested in those areas. Especially in the light of the previous discussions of trying to get around the Chicago Bottlenecks.
Sam

[MP173]

Sam:

Thanks for the info. In the release I did not see that they purchased the St. Louis - Duquoin line. Did they in fact purchase that line?

Also, i find it very interesting that they now have control of the CN line from Corwith to Joliet. Hmmmm. Looking at Terra Server at Corwith there is not a direct turnout from the CN to Corwith Yard, but there is a turnout from Corwith heading east into Chicago. Which means, they will probably build a new one.

Ok, this Joliet - Corwith gives them tremendous operational flexibility, essentially turning the Corwith Joliet into a 4 track main, subject of course to restrictions on the trackage rights and CN's dispatching. I do not think the line is currently used anywhere near capacity. It seems like a pretty good stretch of railroad - double track.

It seems BNSF and CN are setting up some coordinated routings that should benefit both and also give local control to the carrier that has the greatest need, such as at Corwith and Memphis.

I need to get a map out and look at the macro view of these to get a better handle of the Northwest - Southeast pattern.

ed

[samfp1943]

CN and BNSF Railway Announce Agreement To Increase Network Fluidity and Infrastructure Capacity
MONTREAL and FORT WORTH, Tex., Jan. 19, 2006:
CN and BNSF Railway Company announced today an agreement focused on improving rail network fluidity and infrastructure capacity, principally in Vancouver, B.C., Chicago, and between Memphis and southern Illinois.

The agreement includes track and rail infrastructure exchanges between the railroads, and CN’s grant of trackage, haulage and other access rights to BNSF Railway.Highlights of the agreement are:

In Vancouver, B.C., CN will obtain operational, dispatching and maintenance control of 12 miles of joint track between the Fraser River Bridge in New Westminster, B.C., and ocean terminals on the south shore of Burrard Inlet near downtown Vancouver. This trackage also connects CN’s network with its north shore terminals, customers and the former BC Rail.
In Chicago, BNSF will obtain operational, dispatching and maintenance control of CN’s Corwith Tower interlocker, and obtain trackage rights on CN for 30 miles between Corwith and Joliet, Ill., and on two miles of CN’s 49th Street line.
BNSF will obtain trackage rights on CN’s main lines between Memphis and southern Illinois. CN will also transfer its Memphis interlocker to BNSF. Matthew K. Rose, BNSF’s chairman, president and chief executive officer, said, "These agreements provide BNSF with increased capacity and dispatching efficiencies in Chicago and Memphis. In addition, we now can tap CN’s surplus capacity between Memphis and Centralia, Ill., to expand our ability to handle more traffic."
E. Hunter Harrison, CN’s president and chief executive officer, said:
This is a cut and paste from the BNSF's web site, and I thought that it might shed a little more light on where the BNSF might be heading with this purchase from St.Louis to DuQuoin, Il.. Looks like they are/or could be setting up for a new gateway into the southeast, by accessing the CN at this area. The Centralia/Jackson, Tn line might be an option for trackage rights which brings them pretty close to a St. Louis to New Albany, Ms. connection or even a St. Louis/ Holly Springs, Ms connection[via the old Miss Central line from Jackson,Tn to Holly Sprngs,Ms] which ties into the BNSF Memphis/Birmingham main line.. could give them a shorter run to the southeast to Atlanta from the North west.. Lots of options open up with the potential connections that the CN/BNSF cooperation opens up.
Just my thoughts,
Sam

[MoPacFan]

I meant to say that the Byer's siding has been built within the last FEW years.

[MoPacFan]

"Does this purchase/trackage rights mean the downgrading or end to the old Frisco mainline from St. Louis to Memphis?"

I am wondering the same thing myself. I sure hope not, this is a really fun line to watch and is only 5 minutes from my house.

Trains on this line have been backing up lately so I know there is more traffic. I would imagine that traffic wouldnt change due to the fact that they just built the byer's siding on this line only within the last year and they are putting new ties in right now.

[MoPacFan]

"Does this purchase/trackage rights mean the downgrading or end to the old Frisco mainline from St. Louis to Memphis?"

I am wondering the same thing myself. I sure hope not, this is a really fun line to watch and is only 5 minutes from my house.

Trains on this line have been backing up lately so I know there is more traffic. I would imagine that traffic wouldnt change due to the fact that they just built the byer's siding on this line only within the last year and they are putting new ties in right now.

[Anonymous]

Ouch!

[emd_SD_60]

I was talking with someone who works for the CN and the BNSF trains ought to start rolling at the end of March.[:)]

[MP173]

Scott:

Great report. Thanks. A couple of questions, if you dont mind. What was CN's traffic level on the line? I would guess perhaps one manifest daily each way, or was there also an intermodal? How many UP coal trains ran on the line daily (on average)? Where does most of the UP coal trains go? To Paducah to be transloaed? If so, does that mean BNSF will pretty much control that movement? They can now run the traffic single line, cant they?

Does this purchase/trackage rights mean the downgrading or end to the old Frisco mainline from St. Louis to Memphis? I would think the IC routing would be a preferred route over the Frisco route. Also, by gaining trackage rights at Centralia, they can move Galesburg - Memphis trains away from St. Louis.

How much coal does BN tote out of Southern Illinois? It has been years since I have been down there...grew up near Olney.

Thanks for the info, and hopefully you can answer my questions.

ed

[Anonymous]

Smart move by BNSF to buy the line.

[joegreen]

I bet BNSF just wanted **** UP off, along with some extra cash earned on the side...............GOOD MOVE!!!!!!!!! [:D]

[bnsfkline]

ROFLMAO! Good move BNSF!

[emd_SD_60]

Got this from a Yahoo group I am a member of...

"BNSF is purchasing the St. Louis Subdivision from Canadian
National. This is the former Illinois Central line from DuQuoin to
East St. Louis.

Word is that Union Pacific was interested in buying the line, and
things had progressed to the point that UP executives had looked the
line over and crews were being trained to work the line.

BNSF apparently bought the line out from under UP. Along with the
sale, BNSF gains trackage rights over the Centralia, Cairo and
Fulton Subdivisions to reach Memphis, Tennessee. Word is that this
will add four trains to the route, presumably two each way.

My conductor and I confirmed this last night while we were marking
up with the CN dispatcher in Greenwood, MS, while preparing to come
north on Amtrak train 58. The dispatcher said that CN has already
published abolishing a crew caller's job in connection with the line
changing hands. This will be happening shortly if that the job is
abolished as the handover occurs.

I have heard no reason for the BNSF acquiring the line, though I
wonder if it may be partially to protect coal traffic on BNSF's
former CB&Q line south of Centralia. Had UP bought the line, UP
would have gained a potential advantage in competing for that
traffic.

There is no word on what will become of the UP runthrough coal
traffic that makes up most of the traffic on the route at this time,
though with recent Surface Transportation Board policy protecting
competition I would guess that the continuing of the arrangement was
written into the sale.

This is not the first time a line sale added foreign trains to the
Centralia and Cairo Subdivisions. In 1988, the Illinois Central
Gulf sold the line from Fulton, KY, to Birmingham, AL, to Norfolk
Southern.

NS trains 123 southbound and 124 northbound travelled the route from
Fulton to Centralia on a daily basis from that time until around
1993 or 1994. At that time the trains were switched over to an all
NS route over the former Southern Railway line from Louisville to
St. Louis. Reports stated NS was fed up with being treated as a
second class citizen by IC dispatchers."

Scott McPherson