• CP looking to buy more regionals/shortlines?

  • Discussion relating to the past and present operations of CPR. Official web site can be found here: CPR.CA.
Discussion relating to the past and present operations of CPR. Official web site can be found here: CPR.CA.

Moderators: Komachi, Ken V

  by Jmusolf
 
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“We certainly will become -- along the short-line, regional front -- more aggressive than we have been in the past,” Harrison said today at a Wolfe Trahan conference in New York. “There are a lot of those short lines today I’d like to control that I don’t. It’s not in our interest right now to focus on anything else.”
Any speculation on what regionals or shortlines EHH wants to buy?
  by sportsguy
 
Well rumors have sprouted up that the New York Susquehanna and Western (NYSW) is on the CP's radar.
  by riffian
 
After backing out of the New York and Philadelphia markets completely, one would have to wonder why the CP would be interested in the Susie Q.
  by Autoblock
 
Not sure where that came from but I don't see that, NS and CSX already jointly own it for the reason that they didn't want any other class one to get ahold of it, guess anything is possible tho.
  by Jmusolf
 
I've seen a CP geometry train on the Iowa Interestate back in 2011, though I was told IAIS was borrowing it for their own use. Yet I've heard it's been sighted there other times and IAIS seems like it would fit well in the system. Isn't IAIS a big ethanol hauler? Perhaps CP would want more control over the ethanol in the Midwest, apparently they've been making good money with their ethanol here on the DM&E.
  by CPF363
 
Would CP be interested in gaining the control of the MM&A (the old Canadian Atlantic Railway the CP owned at one time) to Brownville Jct. if they can get it for cheap? Some kind of closure in Lac-Mégantic would have to be completed before any through trains can come back to the line.
  by mtuandrew
 
The MM&A and the IAIS come to mind for me too, and possibly the Red River Valley & Western, Twin Cities & Western, and the Dakota, Missouri Valley & Western. Those would deliver more ag and ethanol traffic, and the DMVW would bring more oil and fracking shipments too. Another interesting possibility: a purchase of the freight rights on the state-owned Michigan Central from NS, and investment in lines like the Indiana & Ohio.
  by Engineer Spike
 
Are there excess lines in MI, IN, and OH? This might provide a way to connect the SOO to eastern Canada without the NS trackage rights. Based on what he did at CN, I think Harrison's idea is to fill strategic holes in the system.


The NYS&W might give better access to New Jersey, which they already pulled out of, although they would have yards, and access to online businesses. What percentage did Walter Rich retain in the CR split? CP could buy out his estate, or heirs. It could be a joint operation, like Pan Am Southern. If NS and CSX split their holdings 60/40, like the rest of Conrail, CP could, by buying Walter's share, gain the majority.

Iowa Interstate would could give a longer line haul to CP on cars bound to the west on UP and BNSF. How much do they interchange now at Chicago, Clinton ( IC&E), or Ottumwa? I agree IAIS has to be doing well, as they have enough business to acquire the fleet of new locomotives. This line is more strategic than DME, although the ICE part gave a KC gateway.


MMA would be a steal now! I heard the track is poor, but so was the D&H, when they bought it. To make it work, a guarantee with large shippers, like Irving would be needed.
  by Jmusolf
 
mtuandrew wrote:The MM&A and the IAIS come to mind for me too, and possibly the Red River Valley & Western, Twin Cities & Western, and the Dakota, Missouri Valley & Western. Those would deliver more ag and ethanol traffic, and the DMVW would bring more oil and fracking shipments too. Another interesting possibility: a purchase of the freight rights on the state-owned Michigan Central from NS, and investment in lines like the Indiana & Ohio.
TCW and RRVW make sense because they're all ex MILW lines. I don't see why CP wouldn't want their MILW lines back, since they fit in the system well and could potentially be ethanol lines. Maybe they'd even try and get their old MNS lines back as well just to fill all the gaps in the Twin Cites. DMVW maybe too, it'd be a shame to see their ex CN SD50F's go.

What about Iowa Northern? A shortline in Iowa that connects to CN, CP, IAIS and UP. They connect IAIS and CP so do you think they'd be on CP's radar?
  by mtuandrew
 
The CP still owns the most part of the MN&S main, with the exception of the Minnesota River bridge which is owned by the TC&W as a way to guarantee never-used rights to access Savage. Also, Progressive Rail may own the southern (Lakeville - Northfield) segment outright, or it may be a lease, I'm not sure. Neither obstacle is insurmountable, if CP felt having their own fully-owned connection to the IC&E was important.

IANR would be great, but CP would mostly antagonize UP, the owner of the rails. It'd be an interesting buy, but tread lightly. That said, it would fit nicely with an IAIS purchase, with or without CRANDIC as part of the deal. Beaucoups ethanol too.

Regarding TC&W, they could sure use a friendly way through the Twin Cities metro before garnering the real Class I interest. (See the Kenilworth thread in Midwest Railfan for backstory.) Also, it doesn't really go anywhere, just serves as a feeder. It is reasonably prosperous though, which would help, and seems to have made a go of the MPLI former M&StL western main (which would probably remain as a short line, rather than joining CP.)

In terms of the RRVW, it looks like it would be a good overlay of trackage onto the CP mainline. Not really in oil country, but it would be a good fit with the grain traffic.

Finally, I noticed a very long tanker train placarded 1267 (crude) bound for the east entering Pigs Eye Yard this morning. If CP wants more, the DMVW would be an excellent place to start their short line (re)acquisition process.
  by mtuandrew
 
CPF363 wrote:Would CP be interested in acquiring the Chicago, Ft. Wayne & Eastern Railroad?
To what end? Keep in mind that CSX owns the actual line, which it leases to Genesee & Western, and also that it doesn't link CP with its own home rails in Detroit.
  by Jmusolf
 
Regarding TC&W, they could sure use a friendly way through the Twin Cities metro before garnering the real Class I interest. (See the Kenilworth thread in Midwest Railfan for backstory.) Also, it doesn't really go anywhere, just serves as a feeder. It
The DM&E that CP owns doesn't really go anywhere and serves as a feeder too but it still feels important (even more so after CP shed all the track in Western MN and South Dakota) with all the grain and ethanol traffic. Perhaps the TC&W track could get the same treatment, would definitely be nice for more leg room in the Twin Cities especially with that yard expansion being planned out.