• Could CP ever take over the NYSW

  • Discussion related to New York, Susquehanna & Western operations past and present. Also includes some discussion related to Deleware Otsego owned and operated shortlines. Official web site can be found here: NYSW.COM.
Discussion related to New York, Susquehanna & Western operations past and present. Also includes some discussion related to Deleware Otsego owned and operated shortlines. Official web site can be found here: NYSW.COM.

Moderators: GOLDEN-ARM, NJ Vike

  by SecaucusJunction
 
Does it sound far fetched? maybe... but look at it this way... CP seems to be very interested in gobbling up smaller regionals and shortlines that may give them better access to certain areas. If NS and CSX still control the NYSW, wouldn't they be better off letting someone else take like CP take it over. They dont have to worry about extra competition because CP already has rights into NJ anyway and they could use the NYSW route and get CP off a congested Lehigh Line which is supposed to be made even worse in the next 10 years. CP could then carry the lions share of C&D traffic out of NJ and even get back into the intermodal business that it has let NS handle for them. And any traffic from Allentown could still be handled by NS. Seems like a win win situation for everyone and this railroad might be somewhat less corrupt and evade less taxes than the DO has done in the past...

  by Steve F45
 
you know, to be honest it does seem feasable. but will it happen who knows. I do agree, CP has been gobbling up all the other regionals/shortlines out in the midwest area.

  by northjerseybuff
 
I highly doubt CSX/NS the main owners are going to sell or lease the railroad to a competitor

  by lvrr325
 
Who are the main owners exactly? That's never been resolved to any degree of factual accuracy just who owns how much of the railroad, right now.


It was said that one of the reasons that CSX removed the lines north out of Syracuse from consideration for sale or lease, was the possibility CN could buy out whoever took over the line, allowing them to reach the NYC market via the NYS&W - but like anything else you have to take it with a grain of salt.

  by SecaucusJunction
 
northjerseybuff wrote:I highly doubt CSX/NS the main owners are going to sell or lease the railroad to a competitor

I agree that no one has been able to figure out how much ownership and how much pull that CSX and NS have in the NYSW now that WR is gone... but like I said, CP already has rights into NJ anyway so there would be really no more competition. It would just be a way to smooth out operations in the area.

  by Sid Farkus
 
Will NYSW ever be sold to any railroad?

  by pablo
 
Seems like a win win situation for everyone and this railroad might be somewhat less corrupt and evade less taxes than the DO has done in the past...
Probably not the most useful sentence if we're talking about CP taking over the NYSW.

Dave Becker

  by cjvrr
 
SecaucusJunction wrote:
I agree that no one has been able to figure out how much ownership and how much pull that CSX and NS have in the NYSW now that WR is gone... but like I said, CP already has rights into NJ anyway so there would be really no more competition. It would just be a way to smooth out operations in the area.
But they have enough pull to make it count. NS and CSX paid for the buyout specifically because they did not want DO to cozy up to CP (very likely) or anyone else.

While CP has rights into NJ they have very limited yard space in Oak Island and own no lineside property elsewhere. That would not be the case if they purchased the NYS&W. The NYS&W has transload facilites for plastic, corn syrup, lumber, sugar, propane, CO2 as well as the C&D. They also own or have access to many lineside properties in North Bergen. A CP purchase would open up NS and CSX to competition in all those areas. They are not going to let that happen.

I hate to say it, but my personal belief is the NYS&W SD will slowly be folded into Shared Assets or sold to NJT and the ND will be sold off to other shortline(s).

  by GOLDEN-ARM
 
Why would CP want it? Other than Butler, or Sparta, they run almost everywhere the Suzy runs now. With access to NY, and Philly, from points north, and west, there's not much strategy in securing a route that goes nowhere "better" than where they already go, on a road with a very large grade, winding route, and ever dwindling customer base. Adding route/miles to the midwest, and western end of the CP System seems more strategic for them, at this opoint in time, no? Just a thought.......

  by Wanderer
 
cjvrr wrote:While CP has rights into NJ they have very limited yard space in Oak Island and own no lineside property elsewhere. That would not be the case if they purchased the NYS&W. The NYS&W has transload facilites for plastic, corn syrup, lumber, sugar, propane, CO2 as well as the C&D. They also own or have access to many lineside properties in North Bergen. A CP purchase would open up NS and CSX to competition in all those areas. They are not going to let that happen.
I don't know about the NYS&W being folded into Shared Assets, and I don't claim to. However, I do know it is highly unlikely that CP would make a move on it, or attempt trackage rights on it.

Right now, CP has basically all of it's useable money focused on it's own system, and the legal battle to get into the Power River Basin via recent purchase DME/ICE. Secondly, the STB would be very reluctant to allow CP any major assets within metropolitan New York. The point of pushing the D&H into the area in the 1970's was to maintain competition without allowing the transfer of any major properties. Stranger things have happened, but the actions CP is taking/has taken to expand their OI facilities, I don't see the need.

  by RussNelson
 
lvrr325 wrote:It was said that one of the reasons that CSX removed the lines north out of Syracuse from consideration for sale or lease, was the possibility CN could buy out whoever took over the line,
Fort Drum receives rail shipments. Can't trust those damn foreigners to run a railroad, y'know. National Security, harrumph, harrumph.