CSX Acquisition of Pan Am Railways

[newpylong]

Been that way since the tunnel cave in. All their section guys from out west are still working on the tunnel and they did not hire more. I don't see those speedos going anywhere before the sale they just don't care.

Why should they care? They are selling the whole thing and spending huge amounts of money to upgrade things that will not bring them any additional money would be stupid. Just makes sense at this point not to make any investment in the property.

You are correct, however this has been largely the modus operandi since the late 80s so I can't just as easily pass it off on the sale.

[jaymac]

MEC407
..."Look what they did to my boy..."

One needs to be of a certain age to get the reference, but those of a certain age are much the demographic of the site.

[NHV 669]

And to think, Big G's tenure didn't last a decade up here. Half the B&M track through the area would be gone within 15 years, with the remainder bound to car storage and one occasional customer since. So much for "new markets/opportunities"......

[gokeefe]

Things changed ... There was a lot of online industry that went away as a result of shifting trade patterns and not merely changes to the railroad. Northern New England industry simply couldn't keep up with cheaper labor, in newer plants and minimal environmental regulation.

Those competitive disadvantages have narrowed substantially since then and may be about to vanish. Should be interesting to see what effect that has on industrial development. The natural resource base is stronger than ever.

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[newpylong]

This is correct however the draconian management changes implemented at once that caused the strikes erroded their customer base never to recover. Don't believe anyone who says otherwise.

[BandA]

Wouldn't be prudent for NS to make any significant investments, even if they want to, until after the sale. If I was NS I would try to buy ~~51%, become the operating partner, and bring in a financial partner to do the injecting of capital. (and to keep it off the Consolidated Balance Sheet)

[gokeefe]

This is correct however the draconian management changes implemented at once that caused the strikes erroded their customer base never to recover. Don't believe anyone who says otherwise.

Was there any particular customer class that was lost more than others? Obviously the mill traffic came back but I'm curious if there was an industry or set of similar companies which turned away from rail (or maybe just GTI/ST specifically).

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[newpylong]

It was pretty consistent across the board. No, the mill traffic did not come back to the pre-strike levels. Like all of their other customers they turned to trucks (even if more expensive) to move product when the railroad couldn't.

[Gilbert B Norman]

Mr. Newpy, it is simply tragic that business such as finished "Products of Forests" had to be lost. Plywood, Pulpboard, Lumber, are pretty well up on the "value chain"; if they "spill", they are mostly salvageable.

Reliability of deliveries, of course important, but speed is not.

How could a road squander such a traffic source?

Something tells me all the "big shot guys and gals" had to do was look out the Executrain's window (between Timmy shaking them down to buy his Ambassorship - well now looks like for a "Trump '24" run) and see this property is too far gone for us. I contend the "equity funds" see a cash cow.waiting to be milked for whatever tech startup is on the horizon.

[jaymac]

Gilbert B Norman » Fri Nov 06, 2020 9:20 am
...How could a road, YOUR road, squander such a traffic source?

To do what I usually do -- state the obvious -- newpylong was a C and not a CEO, especially not a member of the Gang of Four.
HIS road was what the Form D and/or other authorization might have given him on any particular work day.
The squanderers got hold of roads in reasonable shape with a reasonable customer base and, with no other shareholders to be answerable to, produced a scrap-value property. Other people's funding in the form of The Downeaster authority, NS, the Feds, and MBTA/MassDOT are the source of any value enhanced beyond scrap.
If a venture group does acquire, I'm not sure what the recouping spinoffs could be.

[Gilbert B Norman]

Mr. Jaymac, I was with the MILW 70-81 as a lowerling Non-Agreement "Office Boy". The MILW was moribund and post Dec '77 Bankruptcy, was there for the Vultures to pick over.

But it was still "my road" - and I know I was a loyal soldier until Dec 81 when I "pulled the pin" to go into private CPA practice.

While off topic here, here's a video showing how bad it was at the end for Lines West:

https://vimeo.com/261066420

[newpylong]

How could a road, YOUR road, squander such a traffic source?

I was hired on 19 years after the first strike, not really fair to call it "my road", in capital letters. I think folks know where I stand on this operation.

The history of the strikes on the B&M and MEC I believe have been covered in great detail.

[Gilbert B Norman]

If offense was taken, please sccept my apology. I will edit it out.

[GP40MC1118]

NS filed this today with the STB: https://dcms-external.s3.amazonaws.com/ ... 301267.pdf

[F74265A]

In the event that transaction were to proceed, it would be very good news for the Worcester route mainline. It would assuredly have to be rebuilt from it present decrepit state