CMQ Profitability

I recently watched a YouTube video of a train interchanging in Millinocket yard and spotted two brand new CMQ covered hoppers and was wondering what possibly new traffic prompted CMQ to buy brand new hoppers. Definitely a sign of better times ahead IIRC they were numbered in the low 300's.

Video link?

Keefe go to YouTube and type in....." cmq job 277 extra welded rail train chase." One the best videos I have seen.It follows a welded rail train to Millinocket at 17:06 the new CMQ hoppers come into view as a train sets off in Millinocket yard. Numbered 708 and 376 it surprised me they were purchasing new cars. I guess the rail train was not for the CMQ ? It does show the CMQ is at least in a financial position to keep up maintenance and purchase newer equipment.

The majority of the rail from that video was indeed for the CMQ, they've most used it on the Moosehead Sub. The remaining rail (ten lengths) was for Pan Am, and they dropped it either in the southern half of D1 between Danville and Rigby, or somewhere in the Maine portion of D2 (no one seems to know exactly where it was dropped).

Regarding the covered hoppers, they have thirty-five of them, and they're being used for agricultural products coming out of northern Maine, on the Maine Northern.

Thanks 690.

Q4 2017 results posted. Pretty much the same story as last quarter, though YOY carloadings showed slight growth. Carloadings for the year were down 8%; revenue was up 6%.

Hopefully what we are seeing right now is near the bottom for them. With new plants and machinery coming online I am hopeful some of the new traffic comes their way.

Q2 '18 reports were posted a couple of weeks ago. Carloadings are flat to down on a YOY basis, but at least mix was positive - chemicals + fert almost offset the shortfall in virtually every other commodity category, so revenue per car is up double digits. I'm surprised to see building products, paper and lumber down down 7% YOY and 10% QOQ. That's not encouraging.

I really appreciate these posts. Very helpful.

Interesting shifts in the commodity mix. In an expanding economy building products, paper and lumber are loads that should be stable or growing.

As best I can tell there aren't any tariffs which would be affecting this so that makes me wonder if CMQ is getting beat on rates.

Chemicals and fertilizer getting stronger is a really interesting shift as well. Chemicals should be weaker (assuming they're for paper) if paper loads are truly down.

gokeefe wrote:Chemicals and fertilizer getting stronger is a really interesting shift as well. Chemicals should be weaker (assuming they're for paper) if paper loads are truly down.

There is no correlation to inbound chemicals (if for paper) loads to outbound product from the same mill from the RR perspective (from the mill side, inputs = outputs so obv that correlates). For example, more outbound paper loads could have be leaving Saint John via CN or truck while more chemicals could be inbound via CMQ. A lot more to it than that too, such as who is picking routings (usually shipper, in the chemical case not the mill), pricing strategy of RRs for commodities, origin and destination pairs, where the paper loads are going vs where the chemicals come from....

Check out the investor transcript under the questions if you want some more interesting information (see questions from investors).

Where could I find the Q2 report ?

The link can be found on the first posting of page 1 of this thread.

Found it thanks cowford

LMS in Hermon is closing sometime next year to make way for a window manufacturer. Sadly they will not be taking rail service. In other news the planned laminated timber plant in Millinocket has torpedoed due to a IRS lean on the site.

They sure don’t have much on-line business left in a Maine besides some propane and some tank car traffic down in Searsport. Hard to imagine they’re very profitable these days.