As many of you know, a hostile takeover of CP is in the works. The buyer, Pershing Square, has asserted that they will hire former CN boss E. Hunter Harrison to run CP and also hire former NS Vice-Chair Steve Tobias. While CN fights this (related to their former chairman supposedly violating his non-compete), EHH and Tobias are pushing forward.
This morning they were interviewed on CNBC's Squawk Box, a business- and market-oriented news program. I tuned in late, but it was very clear that EHH was looking to cut lots of costs. He claimed that current management's revenue projections were a bit overkill and the place to make money was tightening belts, while Tobias said he would focus on safety and customer service.
It's my thought that EHH could turn CP into a maneater. CP has a more direct (hillier) route than CP across western Canada, perfect for intermodal traffic. CP also has a more efficient iron lariat (IE route around the south of Lake Michigan) because they only have rights over CSX and NS, not an actual owned route.
Another interesting question is what EHH plans to do with DME. Is he a growth-oriented guy? Will he pursue Powder River coal expansion? This remains to be seen. What is certain is that DM&E will be seriously changed from their "family railroad" atmosphere that prevailed under independence, and has been gently transitioning under CP to big railroad culture.
Get ready for one heck of a show.
This morning they were interviewed on CNBC's Squawk Box, a business- and market-oriented news program. I tuned in late, but it was very clear that EHH was looking to cut lots of costs. He claimed that current management's revenue projections were a bit overkill and the place to make money was tightening belts, while Tobias said he would focus on safety and customer service.
It's my thought that EHH could turn CP into a maneater. CP has a more direct (hillier) route than CP across western Canada, perfect for intermodal traffic. CP also has a more efficient iron lariat (IE route around the south of Lake Michigan) because they only have rights over CSX and NS, not an actual owned route.
Another interesting question is what EHH plans to do with DME. Is he a growth-oriented guy? Will he pursue Powder River coal expansion? This remains to be seen. What is certain is that DM&E will be seriously changed from their "family railroad" atmosphere that prevailed under independence, and has been gently transitioning under CP to big railroad culture.
Get ready for one heck of a show.
The new Acela: It's not Aveliable.
