roberttosh wrote:I have no doubt that one of the main reason's behind CSX's interest was to protect existing ST business that could very well have been substantially diminished with a different operator.
In what is arguably an anomalous play by CSX reportedly at $800m. for a sticky-wicket down south and a relatively light-density property in need of capital investment up north in total earning half the rate of revenue as their existing system has to be considered for all the possibilities at this early point.
Beyond what might be considered a more-traditional possibility, defense and/or single-line organic and truck-conversion growth of ST traffic, or a Maritimes play for BNSF North Dakota crude or container traffic into the Ohio Valley, central MA and Chicago, depending upon what happens for and against CP Ontario-Chicago, the value of defending CSX's existing non-ST traffic and/or utilizing the ex-B&M to facilitate changes within that existing non-ST franchise, and/or an infrastructure deal centered on PAS, holds at least as much potential. To write off any possibility at this early point is too soon.
For a surprise move keep open the possibility of a surprise reason behind it.