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).

Moderator: MEC407

CMQ for sale?

Postby backroadrails » Sat Dec 01, 2018 9:30 am

For the past few days I have heard talk of CMQ going up for sale in Q1 if car counts don’t increase. It hasn’t been officially announced by Fortress so I am unsure if it is true or not, but I guess we will find out soon if it is true.
backroadrails
 
Posts: 151
Joined: Mon Feb 19, 2018 8:36 am

Re: CMQ for sale?

Postby kilroy » Mon Dec 03, 2018 2:35 pm

Fortress Investments is a hedge fund and not a railroad holding company so the sale of the company is expected at some point.

They need/expect double digit returns so if CMQ is not generating those returns and it is not forecast to do so in the near future, then I would expect Fortress to dump them. It's the nature of the beast.
Why do we drive on parkways and park in driveways?
User avatar
kilroy
 
Posts: 887
Joined: Sat Mar 20, 2004 9:51 am
Location: Central Jersey

Re: CMQ for sale?

Postby CPF363 » Mon Dec 03, 2018 7:15 pm

Who would be in line to buy the CM&Q should Fortress Investments decides to divest of it?
CPF363
 
Posts: 656
Joined: Mon Apr 20, 2009 9:00 pm

Re: CMQ for sale?

Postby backroadrails » Tue Dec 04, 2018 6:08 pm

I didn't really hear if CMQ was in fact loosing money, but it could just be Fortress was looking for a quicker ROI on CMQ. It hasn't been necessarily confirmed but I did hear that G&W was interested.
backroadrails
 
Posts: 151
Joined: Mon Feb 19, 2018 8:36 am

Re: CMQ for sale?

Postby MEC407 » Tue Dec 04, 2018 7:08 pm

G&W would make sense if for no other reason than because they're already such a huge presence in New England.
MEC407
Moderator:
Pan Am Railways — Boston & Maine/Maine Central — Delaware & Hudson
Central Maine & Quebec/Montreal, Maine & Atlantic/Bangor & Aroostook
Providence & Worcester — New England — GE Locomotives
User avatar
MEC407
 
Posts: 10826
Joined: Thu Mar 11, 2004 8:15 pm

Re: CMQ for sale?

Postby backroadrails » Thu Dec 06, 2018 8:30 pm

Although unconfirmed I think CP was looking into it as well.
backroadrails
 
Posts: 151
Joined: Mon Feb 19, 2018 8:36 am

Re: CMQ for sale?

Postby NHV 669 » Fri Dec 07, 2018 9:09 am

Isn't most of CMQ's network of lines mileage that CP didn't want anymore, as of less than 30 years ago?
Casey

Stuck in the midddle of multiple abandonments.
Sometimes, you gotta drive for several hours in the middle of the night, to see the local railroad in action.
User avatar
NHV 669
 
Posts: 669
Joined: Sat Feb 08, 2014 11:07 pm
Location: In the VT woods, between the Mt. Division and WACR

Re: CMQ for sale?

Postby CN9634 » Fri Dec 07, 2018 8:52 pm

CMQ has been a profitable railroad the last 3 years with growth in revenue about 3-5% per year.
CN9634
 
Posts: 2266
Joined: Fri Jul 09, 2004 5:50 pm

Re: CMQ for sale?

Postby roberttosh » Fri Dec 07, 2018 10:13 pm

I’d be real surprised, more like shocked, if CP had any interest whatsoever in the CMQ. The only caveat being if the crude oil by rail business to Saint John takes off again.
roberttosh
 
Posts: 978
Joined: Wed Mar 16, 2005 7:21 pm

Re: CMQ for sale?

Postby Cowford » Mon Dec 10, 2018 2:02 pm

CMQ has been a profitable railroad the last 3 years with growth in revenue about 3-5% per year.


According to Fortress docs, revenue growth has actually been better than that (2018 is artificially high due to SLR reroute revenue). Mix (more chem and propane) is at least a partial explanation , as carloading growth has been pretty tepid. Net income varies (in the red 2015 and 2017, profitable 2016 and thus far in 2018 - again, the reroute revenue helped a lot).
Cowford
 
Posts: 2774
Joined: Thu Mar 18, 2004 12:34 pm
Location: Florida

Re: CMQ for sale?

Postby ShortlinesUSA » Tue Dec 18, 2018 3:29 pm

If the railroad is indeed for sale, I would look for one of the second-tier holding companies to make a move on it. I don't see the line turning the kind of big numbers G&W or Watco need to pump up their portfolios to continue to fund additional acquisitions. International Rail Partners (the latest iteration of RailAmerica under Marino) is in the market, as well as OmniTrax and Patriot Rail. I do not think you will see any Class 1 move on this property.
Mike Derrick
ShortlinesUSA
 
Posts: 161
Joined: Sat Jan 20, 2007 6:57 pm
Location: Chattanooga, TN

Re: CMQ for sale?

Postby backroadrails » Wed Dec 26, 2018 11:35 pm

I would expect other short line operators to try to buy CMQ if it does indeed go up for sale, and even with the loss of LMS traffic, traffic has been slowly increasing (I suspect just not as fast as Fortress would like). The only logical explanation I could come up with as to why CP would be interested in CMQ is trying to get back to New Brunswick, to try to steal business back from CN. But I guess for now we will only be able to wait, and see once something does happen.
backroadrails
 
Posts: 151
Joined: Mon Feb 19, 2018 8:36 am


Return to Central Maine & Quebec Railway (formerly Montreal, Maine & Atlantic / Bangor & Aroostook)

Who is online

Users browsing this forum: No registered users and 2 guests