Mr. Golden Arm and Col. Perkowski, I hope you will allow discussion regarding speculation of a KCS-UP combination made by one financial pundit, CNBC's Jim Cramer, to move forth here so long as it is from a "what's in it for UP" perspective.
If, and I reiterate if in that, as of this writing, no other financial media source has given this "legs", such moves forth, I believe it would be a "defensive" play by UP. At present, the best route for "Lakes to Gulf" traffic is GT/IC. Being that is CN'S US Subsidiary, they are at advantage to handle the Canadian agriculture products to the Gulf for export. The route is like the song "rolling on down to the sea".
The UP of course has a route, but that comprising of RI-Kan City-MP, or whatever through the "spaghetti bowl" they inherited, is "circuitous".
The KCS is "more or less" direct, but mountainous going through the Ozarks. But then, it's the only game left - and might some Beaver be sharpening his claws to make a grab for it.
Now of concern would be the KCS Mexican properties. In view of that UP owns 49% of Ferromex (Govt. the rest) I believe that divestment of KCS-M could not be discounted. I'm sure if anything moves beyond this pundit, "the eyes of Lou Menk Drive will be upon you".
But I hold Mexico is what gives viability to the KCS; AND should the day of Mexican political stability come to pass, a big BIG Bitcoin Farm will have been born.
All told, we could be looking at a "21st Century Conrail Saga".
If, and I reiterate if in that, as of this writing, no other financial media source has given this "legs", such moves forth, I believe it would be a "defensive" play by UP. At present, the best route for "Lakes to Gulf" traffic is GT/IC. Being that is CN'S US Subsidiary, they are at advantage to handle the Canadian agriculture products to the Gulf for export. The route is like the song "rolling on down to the sea".
The UP of course has a route, but that comprising of RI-Kan City-MP, or whatever through the "spaghetti bowl" they inherited, is "circuitous".
The KCS is "more or less" direct, but mountainous going through the Ozarks. But then, it's the only game left - and might some Beaver be sharpening his claws to make a grab for it.
Now of concern would be the KCS Mexican properties. In view of that UP owns 49% of Ferromex (Govt. the rest) I believe that divestment of KCS-M could not be discounted. I'm sure if anything moves beyond this pundit, "the eyes of Lou Menk Drive will be upon you".
But I hold Mexico is what gives viability to the KCS; AND should the day of Mexican political stability come to pass, a big BIG Bitcoin Farm will have been born.
All told, we could be looking at a "21st Century Conrail Saga".