BIG NEWS!

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BIG NEWS!

Postby bostontrainguy » Thu Oct 02, 2014 10:40 am

Harrison: CP has agreement to sell Delaware & Hudson
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Re: BIG NEWS!

Postby ladder2 » Thu Oct 02, 2014 11:50 am

To whom?? Norfolk Southern would be the logical buyer since it already has operating agreements Sudbury to Mechanicsville,NY. When was this announced?
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Re: BIG NEWS!

Postby bostontrainguy » Thu Oct 02, 2014 12:46 pm

Today, but he wouldn't say to who.
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Re: BIG NEWS!

Postby Backshophoss » Thu Oct 02, 2014 7:46 pm

If not NS,was PAR or PAS that got D&H?
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Re: BIG NEWS!

Postby F-line to Dudley via Park » Thu Oct 02, 2014 11:04 pm

Backshophoss wrote:If not NS,was PAR or PAS that got D&H?


Well...PAS is 50% NS, so that would answer that question with the same answer. I doubt PAR has that kind of cash onhand given all the mill closures that are suddenly looking pretty terrifying for Maine business. They may be a profitable company, but they aren't in acquisition mode and as a privately-held company probably can't amass enough capital on short notice for a major bidding war with publicly-traded Class I's almost certainly in on the mix better able to jack up their bids at the last second.

The other rumor is Gennessee & Wyoming, but that doesn't make any sense given their system redundancies. They just bought RailAmerica because NECR was near the top of their target list, and are pouring millions of their own money into upgrades. It doesn't gain them enough above-and-beyond advantage for the money they'd then have to dump into the D&H physical plant when the checks have already been cut on upgrades to the duplicate routes. G&W can definitely muscle the cash, but strategically it would be a head-scratcher.


It's either NS, or somebody who isn't even in the region wanting to break into the region from a remote perch (a la FEC buying Montreal, Maine & Atlantic).
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Re: BIG NEWS!

Postby newpylong » Fri Oct 03, 2014 8:23 am

PAR does not have the cash - the MEC is in terrible financial shape.

I guess it's conceivable PAS get it where NS contributes cash and PAR takes over operations, but I think a straight NS sale is more logical. Big rumors of G&W too.
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Re: BIG NEWS!

Postby F-line to Dudley via Park » Fri Oct 03, 2014 1:00 pm

newpylong wrote:PAR does not have the cash - the MEC is in terrible financial shape.

I guess it's conceivable PAS get it where NS contributes cash and PAR takes over operations, but I think a straight NS sale is more logical. Big rumors of G&W too.



PAR doesn't have the available power or staff to cover any new territory. At least if NS takes over ops on PAS and ends the current canning hell situation while PAR retains 100% of its haulage rights on the west end and Conn River that returns enough infusion of equipment back east to ease the canning hell systemwide (though not the staffing levels because Billerica would just lay everyone off). Not to mention get much snappier intermodal deliveries in Ayer when NS unleashes its tactical nuclear strike to get main up to Class 3 or better and be done with this slow-speed nonsense. It wouldn't require a buyout of PAR's 50% or an end to the PAS entity at all, just certain triggers in the agreement to get hit and executed. They probably wouldn't mind it at all if NS just exercised its clause to take over, though Billerica probably isn't gonna cop to that and raise the possibility of its own volition. They'll wait till NS says "Ah, screw it...we're taking over." If Maine's going to be a cash flow problem then being able to continue sharing in the Patriot Corridor revenue (and probably increasing it) while only spending a fraction on ops and staffing may be a net-gain financially. Short-term at least if they think they can ride out MEC's troubles and offset them elsewhere. Doesn't mean the PAR system as presently constituted can stay presently constituted long-term.
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Re: BIG NEWS!

Postby Engineer Spike » Thu Oct 09, 2014 6:36 pm

Under Fred Green, CP seemed to take a real back seat to NS and CSX. It appeared that the D&H was loosing traffic at a staggering rate. Before the recession of '07-08, there were 2 manifest trains out of Montreal every night. One was for Albany, Saratoga, Ft. Edweird, while the other was south end. It carried .many containers. Some of this was lost to other carriers.

Even south of Saratoga had 2 trains. The first was straight from Montreal, while the other took traffic from Saratoga, then picked up a B&M connection at Mohawk. This never returned, once the economy recovered.

It seems like CP is giving up on some of the largest population centers of North America. I'm surprised that Hunter does not try to take the large US east coast carriers on. Perhaps he feels that CP is inferior timewise in those routes. Like I've said, I think the previous management was weak on marketing, and aggressively completing. This likely set the stage for their being nothing left.
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Re: BIG NEWS!

Postby GE45tonner » Thu Oct 09, 2014 7:04 pm

Would the Providence and Worcester be a possibility?
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Re: BIG NEWS!

Postby newpylong » Mon Oct 13, 2014 3:13 pm

GE45tonner wrote:Would the Providence and Worcester be a possibility?

No
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Re: BIG NEWS!

Postby newpylong » Sat May 16, 2015 5:03 pm

Sale approved yesterday by STB.
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