• CMQ for sale?

  • Discussion of present-day CM&Q operations, as well as discussion of predecessors Montreal, Maine & Atlantic Railway (MMA) and Bangor & Aroostook Railroad (BAR).
Discussion of present-day CM&Q operations, as well as discussion of predecessors Montreal, Maine & Atlantic Railway (MMA) and Bangor & Aroostook Railroad (BAR).

Moderator: MEC407

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  by NHV 669
 
I believe there was a single container seen on the headpin of an eastbound departing Farnham within the last couple days. Perhaps another test/PR car?
  by CN9634
 
Canadian Tire test container. Should be more at some point soon.
  by bostontrainguy
 
I would think they actually know if a container fits or not, right? There are pics on another site of TOFC trains being operated in 2004 by MM&A across the line. Why do they have to test for a single level container?
  by Zeke
 
I am sure CMQ is very familiar with their clearance diagrams but as a Class one taking them over CP would want to double check and update if necessary all of the dimensions in CMQ's book. On occasion a lucrative oversize load may be handled and CP would want to affirm close clearance locations and the dimensional outer limits of their right of way.
  by fromway
 
Maybe not clearances but checking difference in delivery time to SJ.
  by CN9634
 
Not a clearance test by any means... you would never do that with a live shipment anyways.... it is rather a service test
  by Zeke
 
Apparently CEO Creel has been out and about the CMQ talking to employees and customers the past two weeks. He was joined by marketing big wigs and seems quite enthusiastic about the purchase. Fourth quarter earnings are in gross income C 2.07 Billion dollars and C 664 million dollars' net. Record fourth quarter CBR movement and quarterly profit.
  by NHV 669
 
CN9634 wrote: Thu Jan 30, 2020 6:02 pm Canadian Tire test container. Should be more at some point soon.
From the mouth of the horse itself:

https://twitter.com/CanadianPacific/sta ... gr%5Etweet

Looks like they've already got two companies on board. I guess we'll see these on Job 2 soon.
  by CN9634
 
Should see Maritime Ontario (yard in Saint John just west of town), Bison Transport (took over Celadon's intermodal business in eastern Canada) and potentially Armour (based out of Moncton, but very unhappy with just CN service) containers coming up as well in the near term. AxSun has been moving some volumes more recently with CP and the TFI group of companies (Clarke, and others) has been doing some more as well. I'd look at the CN 120-121 domestic volumes, typically they are on the head pin of the train (all the 53s) with some manifest that gets dropped off at Moncton for Saint John.

What's interesting is CN owns TransX and H&R, but they as of now have still moved containers on CP. It's a surprising move, while yes the railroads do compete with the IMCs to some degree, CN's purchase of IMCs like that might really drive other IMC's off their network and onto CP. My understand too is a lot of companies have been asking for alternatives to CN in Moncton, so it's not surprise that this has started up rather quickly.

I wouldn't be surprised too if some MSC boxes move spot on CP, as they seem to hedge volumes back and fourth with CN & CP. The CMA contract is firmly on CN for now. Alliance wise, you could see some Maersk, COSCO, and Evergreen boxes moving spot as well, although I think that is less likely.

I'd keep an eye out too for Temperature control containers too (CP ones), as Loblaw is a large Canadian grocery distributor and retailer.
  by gokeefe
 
I'm impressed by the grocery company as well. A lot of IM volume there for CP to soak up if they can meet the necessary service levels.
  by johnpbarlow
 
This protest filing at the STB by Robert J. Keach, the Estate Representative (the “Trustee”) of the post-effective date estate
of Montreal Maine & Atlantic Railway, Ltd could be a fly in the ointment for CP acquisition of CMQ. At 287 pages, Keach goes through chapter and verse to support his argument that CP's acquisition of CMQ in the US should be put on hold until there is a resolution of 4 lawsuits brought by Keach and others against Soo Line subsidiary. There is much discussion of CP's recent string of crude oil train wrecks along with depositions of CP's Vice President, Safety, Environment & Regulatory, Glen Wilson, CP's Hazmat Program Manager, Darlene Nagy, Director Hazardous Materials / Dangerous Goods, James Kozey.

Excerpts:
The Trustee contends that any approval of the change of control of CMQR US (together with Soo Line, the “Applicants”) should, at a minimum, be conditioned upon measures designed to change the safety culture at CP and Soo Line, given the risk to the public and the environment from the continued transport of crude by rail. However, precisely what changes are needed will likely be determined by the outcome of the pending litigations. Accordingly, approval should be withheld until those litigations conclude. Based on what the Trustee understands to be the current schedules, all four cases should come to judgment in 2020.
The Trustee and other parties in interest have alleged these concerns in the four lawsuits pending in the United States and Canada, seeking to hold Soo Line, CP and certain affiliates (collectively, the “CP Entities”) responsible for their roles in causing the explosion and the resulting death and devastation stemming from the derailment of a crude-hauling, CP originated train in Lac Mégantic in 2013. Indeed, Soo Line and CP are the only entities identified by the Trustee as potentially responsible for the Lac Mégantic disaster to not have settled and contributed to a fund established to
compensate the victims of the Lac Mégantic derailment
Worse, recent derailments (and accompanying explosions and fires) in Saskatchewan involving CP-controlled trains, including trains using the supposedly safer tank cars, potentially raise new concerns about CP’s safety culture and the overall safety of crude by rail. The investigations into those incidents have just begun. Rather than permitting the web of road that the CP Entities control to grow by virtue of the Transaction, the Board should exercise its authority to consider the public interest and decline to approve the Application at this time. The Board should delay approval of the Transaction until there has been a final resolution in all currently pending actions against the CP Entities and the investigations into the most recent incidents in Canada have concluded.
https://dcms-external.s3.amazonaws.com/ ... 300410.pdf
  by Backshophoss
 
CMQ was sold to CN, Just Items to be "cleaned up" in court.
  by CN9634
 
287 pages of desperation because no one has paid up to help the 'poor MMA'... end of the day, Lac Megantic happened in Canada, and the STB looks at US rail-line problems (Keach even admits this in the document).

The economic upside and support that CP has already mentioned and demonstrated in their application is far beyond compelling for the STB versus this MMA nonsense.
Last edited by MEC407 on Fri Feb 21, 2020 1:06 pm, edited 1 time in total. Reason: unnecessary quoting
  by Zeke
 
It appears to be, on the surface, a last ditch hail Mary greenmail shakedown.
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