CSX Selling Trackage

[Engineer Spike]

The above mentioned features of CROR rules is somewhat wrong. I’m examined on that book. The units of measure are not metric, and the speeds for slow, medium, and limited are all in miles. Actually the book is very similar to GCOR. The main difference is that verbal authority is all dictated. This includes passing a stop signal, and working or reversing in a block. Permission through a forman’s work area is also copied on a form. There are a few other minor differences. I was also qualified on CSX rules. Our D&H rules guy was on the NORAC committee, and said that their head rules guy was from Conrail. When CSX finally combined the original CSX, and Conrail portions into a common set of rules, it was based on NORAC.

I say that part of the expense of Canadian operations was having a special pool of Canadian employees. Due to labor laws, there are some jobs which would likely be illegal to fill with US employees.

[Shortline614]

From Trains: http://trn.trains.com/news/news-wire/20 ... -panhandle" onclick="window.open(this.href);return false;

CSX plans to retain trackage rights over the Florida, Gulf & Atlantic.

CSX says they have no plans to run trains regularly over the line, as the purpose of the trackage rights is to act as a release valve in case another part of the CSX system is put out of service for an extended period of time.

As CSX continues to sell off parts of it's network, expect them to retain trackage rights over some of the new railroads. Very similar to the Montana Rail Link spin-off.

[Railjunkie]

Fresh from the rumor rama. CSX has sold West Albany yard the Troy branch and there Port of Rennselear work, Expect to see an announcement within the next month.

Now for something even bigger. It has been told to me by some good sources all train departing Selkirk now have two sets of paperwork one from CSX and the other is from UP. Even if the trains are not routed to Chi town. Hmmm wonder if that UP inspection train had a little more juice than we thought.

[Wayside]

Now for something even bigger. It has been told to me by some good sources all train departing Selkirk now have two sets of paperwork one from CSX and the other is from UP. Even if the trains are not routed to Chi town. Hmmm wonder if that UP inspection train had a little more juice than we thought.

Seems a little premature for some kind of merger. But interesting nonetheless. Strong rumors within UP about some level of CSX merger discussions going on. Even if true, it doesn't indicate a high liklihood of it actually coming to pass.

[Shortline614]

Fresh from the rumour rama. CSX has sold West Albany Yard the Troy Branch and the Port of Rennselear Work, expect to see an announcement within the next month.

Now for something even bigger. It has been told to me by some good sources all trains departing Selkirk now have two sets of paperwork one from CSX and the other is from UP. Even if the trains are not routed to Chi-Town. Hmmm, wonder if that UP inspection train had a little more juice than we thought.

Who would the trackage be sold to? Pan Am? CP?

Also, why would CSX trains departing Selkirk have UP paperwork? Unless CSX is in the early stages of planning for a merger with UP, which they are unable to until 2020 because of a clause in EHH's contract with CP, this makes no sense. Unless there is something behind the scenes we don't know about, UP has not changed their position on opposing future Class 1 mergers, as reaffirmed by Lance Fritz at the RailTrends 2018 conference.

I'd much more expect CSX to merge with CP come 2020. Both Keith Creel (CP) and Jim Foote (CSX) have both expressed support for mergers in the past. You have to remember that Creel and Foote are both Harrison alumni, and were key players in CP's attempt to take over NS in 2016. This is why I don't think CSX wont sell the former Pere Marquette lines in Michigan, as Chicago to Detroit is a major gap in the CP system. This also in part explains why CSX is selling the Massena line, as a CP-CSX merger would have two New York to Montreal lines, and would be likey to an STB divestiture condition, most likely to CN.

Jim McClellan once said, "When railroaders talk merger, they don’t pull out their financial statements. They pull out their maps.” CSX has pulled out their maps, and are deciding which lines to keep and which liens to sell in order to make themselves the most attractive merger partner, most likely to CP or UP.

I fully expect Mantle Ridge to sell CSX to CP come 2020, earning them millions of dollars in the process.

[Wayside]

Off topic, I know, but Fritz saying they are opposed to Class I mergers doesn't necessarily mean they are not exploring possibilities. Okay, back to CSX.

I have long expected that CSX would have wanted to unload West Albany and associated trackage. That segment hasn't been a key part of the main line operation for many, many years.

[Railjunkie]

I dont know if this still holds true but.. The LPG handled at W Albany was enough revenue for the payroll at Selkirk. With the above sale they will loose 7(?) jobs.

The yard and secondaries can only be reached over Amtrak territory. Havent heard how this will shake out.

As for the UP this isnt the first time Ive heard this rumor. The first time was 15ish years ago. Just seems a little more likely now that paperwork is being issued. As a side note why on earth would UP run their OCS across CSX to South Schenectady. To check the veggie warehouse, I think not.

[ccutler]

Are they preparing all trains with UP paperwork, or just the ones going west to interchange with UP?

[Railjunkie]

Are they preparing all trains with UP paperwork, or just the ones going west to interchange with UP?

From what Ive been told pretty much everything out of Selkirk is getting two sets of paperwork.

[Sprinter611]

Fresh from the rumor rama. CSX has sold West Albany yard the Troy branch and there Port of Rennselear work, Expect to see an announcement within the next month.

Another rumor going around is the Hudson Grain was sold off in this deal as well.

[Railjunkie]

That may be the next to go

Fresh from the rumor rama. CSX has sold West Albany yard the Troy branch and there Port of Rennselear work, Expect to see an announcement within the next month.

Another rumor going around is the Hudson Grain was sold off in this deal as well.

That may be the next to go, possible South Schenectady and the Carmen. But as of now its W Albany Troy and the Port of Rennselear. New power for the locals out Oak Point, 400 series 427 I think was in Harmon yesterday for measurements. Reason, is the 4 axle stuff might be going to the short line.

[bostontrainguy]

Article from Railway Age (Sept 18, 2018):

UP 2020, which will launch Oct. 1 and be rolled out in phases across the entire Union Pacific rail network, “is an important part of Union Pacific’s objective of operating a safe, reliable and efficient railroad,” UP said. “Resulting benefits are expected to help Union Pacific achieve its 60% operating ratio goal by 2020, on the way to achieving a 55% operating ratio.”

. . .

There has been some speculation that UP 2020 is being implemented in preparation for a UP-CSX merger, which in turn could prompt a final round of Class I consolidation. Should that occur, two giant east-west transcontinental systems will probably emerge, with the likely combinations of UP-CSX-Canadian Pacific and BNSF-Norfolk Southern-CN. Whether Kansas City Southern is absorbed by one of these mega-railroads remains to be seen. If anything, KCS de México would most likely remain independent.

[Gilbert B Norman]

Of late, there have been several postings going far beyond the intended scope of this topic regarding CSX selling off a branch line here and there, and moving to a "North American duopoly", we should be discussing such over at General Class I.

I think this is inevitable, maybe even within my lifetime.

Now that CN has made a "stab through the heartland" to the Gulf, CP has acquired trackage enabling access to Northeastern traffic sources, Both KCS and UP having made substantial investments in the Mexican rail system, that trade agreements have now been negotiated by both US political parties resulting in trilateral treaties, this duopoly simply is where we're going.

Inevitably issues, some thorny and of substance such as Warren losing control of "his 1:1 Lionel set", but sixty years ago, whoever dreamed of an NYC-PRR (or if it ever came to pass, would be the most disastrous debacle ever confronted by the industry) combination?

Paralleling such, whoever dreamed that the twenty five scheduled US airlines flying under their own colors, sixty years ago, eventually seek bankruptcy protection, and become ten with 70% of the traffic belonging to four (or that the travel experience would equal a "subway in the sky")?

So it will be interesting to hear from those like myself who think of the industry in terms of a business rather than a photo-op, with their concurrence or more likely contradiction.

[gokeefe]

Class I mergers haven't got a prayer of being approved in my opinion. There is a "public interest" test which is impossible to meet when consolidation eliminates competition to entire major metro areas.

This is especially true given the fluid state of affairs and the continued emergence of regional operators on secondary and tertiary branch lines all of which I'm sure the STB supports.

The Class Is have only just recently truly recovered from the stagnation of the mid 20th century. They have been adding capacity in places where it has been gone for decades, they are highly profitable and their traffic levels have continued to rise steadily.

Nothing in that scenario appears to support a "public interest" case for a merger.

[ccutler]

Alternatively CSX could be looking to sell its NYC route through to NJ, to UP for a handsome price.