IPH Passenger Operations

John_Perkowski wrote:Amazing. Even Warren Buffett writes a few pages of notes on why BNSF is a wholly owned subsidiary each year...

The BNSF is a Class I and as such is required to file Form R-1, Annual Report, with the Surf Board. They also file a 10K with the SEC:

https://www.sec.gov/Archives/edgar/data ... 16-10k.htm" onclick="window.open(this.href);return false;

This 2013 article spells out some of the history of IPs struggle


Limited Fair Use Quote

Santa Cruz Sentinel

POSTED: 08/03/13, 12:01 AM PDT | 1 COMMENT
By
By Jason Hoppin

SANTA CRUZ -- The Chicago-based railroad company operating the county's Branch Rail Line has unpaid debts locally and across the nation, raising questions about the company's finances and long-term viability.

From scenic upstate New York to sunny Southern California and across the Midwest, Iowa Pacific Holdings, owner of the Santa Cruz & Monterey Bay Railway, is struggling to keep up with its bills. It owes tens of thousands of dollars to Central Coast businesses alone, from large media outlets to small railroad support crews to even a tool rental shop.

"There's companies all over," said Mark Buchol, owner of St. Louis-based D & M Transportation Consultants, which repairs passenger cars. "I'm not bad-mouthing any one person there, but they had a lack of a business plan. I not sure what anyone was thinking when they started spending all this money without any plan to pay it back."

Iowa Pacific - as of '14 - 80% was sold to Sam Zell, real estate billionaire. No idea how much money went into company but Zell buys cheap and will probably debt/equity fund the company's growth. He is comfortable with debt so will use leverage to grow and eventually sell it.

Zell is well known as bankruptcy-distressed asset buyer. He controls IP. What he does is anyone's guess. He has hit home runs in the past like buying com'l RE cheap post 1990 RE crash and parlayed that into national portfolio of commercial office buildings known as Equity Office and more recently blew-up badly doing leveraged buyout (too much debt) of Tribune Companies (Chicago) which went bankrupt only a couple of years after he bought. He resides in Chicago area so he is on the ground when it comes to dealing with IP. If he thinks asset value still there he will find ways to salvage best assets and will potentially throw CEO out and find new mgnt.

I was incorrect on IP ownership. I don't think Zell deal ever closed. I don't think Ellis really knows how to operate rail when it comes to actually making money. Given his ex-Amtrak background that should say something about lack of profit focus.

fr recent story where IP gave-up Hoosier State rail - "Ellis says he didn’t realize the contract would swing the payments so far in Amtrak’s favor, and says he’ll learn from the experience if his company enters into another public-private partnership."

I used to work in IPH's corporate office in 2012 and 2013. Quit on my own accord. The company was rife with nepotism, incompetence and illegal activities back then and it still is now. Ed is very good at making himself the victim in the press releases, but he's quite manipulative.

When IOU Pacific was starting up all these operations I remember asking a buddy of mine "Where is all this money coming from?".

I feel that I have my answer now. What a shame.

Does anyone know what ever happened to the "Lion Gardiner" passenger car which used to be stored on the Catskill Mountain Railroad? Supposedly it was sold to Iowa Pacific and destined for some place in the midwest. Was it ever restored? It is in rather poor shape on the CMRR.

scoostraw wrote:When IOU Pacific was starting up all these operations I remember asking a buddy of mine "Where is all this money coming from?".

I feel that I have my answer now. What a shame.

I've had the same question for years now. No bank is going to loan you money to buy every E8 and super dome that rolls for such a speculative venture.

And in further news, the SNC b-boat is for sale at $99k. Seems a bit cheap.

Big Shoulders(lead lender) put a good chunk of IP's passenger car fleet on the market at Ozark Mountain Railcar
Along with some of the Locos.

Mount Hood Railroad is still running, at least for the time being. They are trying a wine train.

Should be interesting to see if any operators try to get all of the full length domes as a single pool.

Big Shoulders,lead lender,has placed at EVERY IP operation "surplus" passenger cars to requirements, on the Ozark Mountain site.

Surplus ? they were in service last week ?

Rockingham Racer wrote: ↑Sat Oct 05, 2019 6:06 am Mount Hood Railroad is still running, at least for the time being. They are trying a wine train.

They are also now advertising a Fall Harvest train.