Railroad Forums 

  • B&LE Trackage in PA...Any Speculations?

  • Pertaining to all railroading subjects, past and present, in Pennsylvania
Pertaining to all railroading subjects, past and present, in Pennsylvania

Moderator: bwparker1

 #13178  by Farmer Joe
 
Anyone have info or theories on how CN might get to its new B&LE trackage in PA? Will they get trackage rights out of Buffalo? I have not heard anything on this lately. Wild speculations are welcome.

Joe

 #14198  by craltoona
 
Your guesses are as good as mine. Perhaps they can get trackage rights from CSX or NS out of Buffalo or Detroit. The thing that interests me though is that CN keeps saying that the B&LE doesn't seem to fit into its strategic plan. This could mean that the B&LE could be sold to someone else. It sure would be nice if it could be left in tact the way it is though! While this is farfetched, you wouldn't hear any compalints from me. :)

 #14823  by Sir Ray
 
Stupid question, which was probably answered many times prior to the big board burp... Why is CN taking over B&LE anyway?
What sale was it included in?

 #15050  by craltoona
 
No such thing as a stupid question. Transtar is a company out of Monroeville, PA. They own the Union Railroad of Pittsburgh, the Bessemer and Lake Erie, Pittsburgh and Conneaut Dock Company (conneaut port) and the Duluth Messabi and Iron Range Railway (shops at Proctor MN). CN has a lot of trackage rights in Minnesota and they want the DM&IR for that reason. They want their mainline more than their ore business. Because DM&IR is owned by Transtar, the deal was to buy all four of the previously mentioned companies. Like I said, CN has stated several times to the public and its stockholders that the B&le and Union Railroads don't fit into its plan. I wonder what will happen to these companies. I'll miss the DM&IR just as much as the B&LE!

 #15373  by roc
 
It would be great to see one of the regionals pick it up. Or, a combination of regionls to make a "super" regional. W&LE, OC, WNYP, AVR? Something to see that would shake things up perhaps more than a little.

Of course, the logistics and dollar costs of making it all happen are likely prohibitive. Purely wishful thinking... mind you.
 #15389  by jrevans
 
craltoona wrote:Transtar is a company out of Monroeville, PA. They own the Union Railroad of Pittsburgh, the Bessemer and Lake Erie, Pittsburgh and Conneaut Dock Company (conneaut port) and the Duluth Messabi and Iron Range Railway (shops at Proctor MN).
Interesting. I did not know that the Union Railroad was involved in this. And I just went back a re-read the latest STB filing and it appears that the Union Railroad is not involved in this transaction.
The Board approves, subject to conditions, the acquisition, by Canadian National Railway Company, of control of Duluth, Missabe and Iron Range Railway Company, Bessemer and Lake Erie Railroad Company, and The Pittsburgh & Conneaut Dock Company.
Do you have any information that says the CN is going to get Union Railroad too?

 #15745  by craltoona
 
jervans,

You have a good point. I have been following this merger since it was only rummors, but in every single press release, media coverage, and railroad report, I have not heard a word about what's going to happen to the Union Railroad. In fact, I haven't even heard the words "Union Railroad" mentioned once by anyone! Never the less, Transtar owns the Union Railroad, so something must happen to it. What exactly I'm not sure of though. I wish I had any info but I don't. Only mere speculations.
:wink:
 #15929  by Ron Mele
 
Actually, the Union Railroad has nothing to do with the CN buyout of the Bessemer. The Union, along with the Birmingham Southern, EJ&E, Lake Terminal and a few other holdings, are owned by Transtar. The B&LE, Missabe, and P&C Dock are owned by Great Lakes Transportation, a holding company owned by Blackstone Capital Partners. Blackstone was at one time the majority owner of Transtar, with US Steel as a minority partner. Then, a few years ago, US Steel spun off the GLT properties and took 100% control of Transtar. Blackstone sold all their former Transtar holdings to CN.
 #15940  by jrevans
 
Ron Mele wrote:Actually, the Union Railroad has nothing to do with the CN buyout of the Bessemer. The Union, along with the Birmingham Southern, EJ&E, Lake Terminal and a few other holdings, are owned by Transtar. The B&LE, Missabe, and P&C Dock are owned by Great Lakes Transportation, a holding company owned by Blackstone Capital Partners. Blackstone was at one time the majority owner of Transtar, with US Steel as a minority partner. Then, a few years ago, US Steel spun off the GLT properties and took 100% control of Transtar. Blackstone sold all their former Transtar holdings to CN.
Thanks for clearing that up, Ron!

I can't imagine that US Steel would want to lose control of those plant railroads, since they are very vital to the production process.

I spent two years in McKeesport, PA (college) and would sometimes get to see the Union Railroad operations. They were pretty secretive about their stuff though.