Railroad Forums 

  • Detours done on the NYSW.....

  • Discussion related to New York, Susquehanna & Western operations past and present. Also includes some discussion related to Deleware Otsego owned and operated shortlines. Official web site can be found here: NYSW.COM.
Discussion related to New York, Susquehanna & Western operations past and present. Also includes some discussion related to Deleware Otsego owned and operated shortlines. Official web site can be found here: NYSW.COM.

Moderators: GOLDEN-ARM, NJ Vike

 #196343  by cjvrr
 
that's petty cash to CSX.
Agreed!
 #196555  by JoeCollege
 
cjvrr wrote: And while CSX is an owner of the NYS&W, they aren't the ONLY owner. NS has an equal share, and Mr. Rich is a minority share holder. They lost money because CSX pulled their trains off. In my opinion, there must have been a contract in place.

Chris
I believe NS and CSX each control 10%, with Mr. Rich owning the rest of the company. A google search of Walter Rich led me to related documents about a week ago.

The issue of detours will continue for a while, but once significant upgrades on the river line are done, won't they become essentially unnecessary?

If I am Mr. Rich, I am desparately seeing ways to connect with CN, either via the Southern Tier to Buffalo or the Montreal secondary, as a means of securing bridge traffic and access to NYC for one of the big boys. NS and CSX have the chokehold on NYC and CP has access; if Walter can connect to CN, the only other big guy in the East, he can play the role he played in the Conrail years. If not, he's just another regional bridge line with insignificant on-line traffic and not much reason to serve as a bridge to the major players. And if I am NS or CSX, I realize that, have war-gamed the possibilities, and have decided to keep the Tier and Mont. Secondary to prevent such a possibility from happening...

 #196756  by Lackawanna484
 
My recollection is NS and CSX hold relatively small shares of CSX stock, so 10% each could be correct. But, the two big railroads loaned Walter Rich the money to buy out the public shareholders, and so hold the note on the property,


I recall that Walter was having conversations with CN about access to the NY metro using his trackage rights when CSX and NS helped him buy out the shareholders. I'd be quite surprised if they allowed him to permit a CN deal now.

I'll take a look at the last DOCP public filings on Monday and see if an actual loan agreement was filed at the time of the buyout

 #197144  by David Hutchinson
 
I beleive CSX and NS each own 40% of NYSW with Walter Rich owning 20%. Please keep in mind that Walter owns 100% of DO, which means he owns 100% of Central NY, the paper railroad "opertating" the Southern Tear.