CSX reviewing lines for potential sales

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~Z~
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CSX reviewing lines for potential sales

Unread post by ~Z~ »

http://trn.trains.com/news/news-wire/20 ... ntial-sale
One of the items up for review: •Former Pere Marquette trackage in Michigan.
Cue the CP buying Plymouth to Grand Rapids to Porter talks, lolz :)
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Re: CSX reviewing lines for potential sales

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Although it doesn't mention it in the article the Port Huron to St. Clair segment is a candidate
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CSX/Pere Marquette lines for sale

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Trains is reporting that CSX has a list of over 8,000 miles of track to be put up for sale or lease. It includes “Former Pere Marquette trackage in Michigan.” Will be interesting to see what that means.

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Re: CSX/Pere Marquette lines for sale

Unread post by SD80MAC »

I would bet the Port Huron/Sarnia stuff and Flint to Plymouth is definitely on the chopping block. Plymouth west and the Detroit area stuff is a little more up in the air.
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Re: CSX reviewing lines for potential sales

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The line that hit me in the face was actually the B&O from Greenwich to Baltimore! :shock:

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Re: CSX reviewing lines for potential sales

Unread post by MSchwiebert »

In a way the B&O east of Greenwich didn't surprise me. Run the Baltimore business up the east coast to the water level route and take it west from there. Sure it's longer route mile wise, but you're also out of maintaining a bunch of mountain railroad too. Straight out of the early CSX playbook when they found out they could kill the Ohio Division and route freight via Pittsburgh & Deshler then down to Cincinnati.

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Re: CSX reviewing lines for potential sales

Unread post by DaveO »

I think this covers the former PH&D.

"CSX’s cross-border incursions into Canada and related U.S. trackage."

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Re: CSX reviewing lines for potential sales

Unread post by GreatLakesRailfan »

DaveO wrote:I think this covers the former PH&D.

"CSX’s cross-border incursions into Canada and related U.S. trackage."
I'd have figured that referred to the Sarnia operations and that newish intermodal ramp they closed a few weeks ago in Quebec (?) among other things. The PH&D wasn't ever part of the cross border traffic. If anything, it would be part of the industrial operations they're looking to eliminate.

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Re: CSX reviewing lines for potential sales

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Another thing to consider is the Conrail Shared Assets, which would be involved if CSX sold off their Detroit access, which I kind of doubt. I think the most likely case is that CSX punts away from Porter to Plymouth (and perhaps Detroit proper) to CP, BNSF or UP for the Chicago-Detroit franchise, while retaining their CRSA access via the Lincoln Secondary and/or Plymouth.

I still think that the Chicago-Detroit franchise via the PM is still too valuable as a through route for a shortline to get it.

Speaking of the CRSA, does anybody know if there are special clauses about NS or CSX divesting of any portion of it? Obviously it was setup with some balance-of-power politics with the 50/50 split of responsibility. I would read that to mean that there would likely be the requirement that NS would have to sign off on anybody getting any piece of the CRSA pie.

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Re: CSX reviewing lines for potential sales

Unread post by BamaSubdivision94 »

Hope LSRC gets most of the remaining PM lines. Would be nice to see more trains running from Saginaw.

This is bittersweet though since CSX is my favorite Class 1 but I'd rather these lines have the chance to flourish again and reinvigorate local communities than flounder in the hands of a company that's driving away business instead of growing it.

I thought the company was doing just fine under Michael Ward. How did CSX fall back into this hedge fund trap anyway?

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Re: CSX reviewing lines for potential sales

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BamaSubdivision94 wrote:I thought the company was doing just fine under Michael Ward. How did CSX fall back into this hedge fund trap anyway?
Here's one perspective on whyhttp://fortune.com/2018/01/20/csx-hunte ... d-revival/
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Re: CSX reviewing lines for potential sales

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Obviously things change, but they already tried to sell the PM quite a few times. Heck they tried to sell it to CP when CP still used it, and they didn't want it. I'm not sure who would want in after CSX lost over half the traffic.

Unless of course, they are offering one heck of a deal. That changes everything. The strategy they have outlines goes something like "we don't want to own all that marginal trackage but we would love to make the revenue from it", which tells me perhaps they will sell it for a song with paper interchange barriers to anybody but CSX.

Just my 2c which ain't enough to buy a branch line...

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Re: CSX reviewing lines for potential sales

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tadman wrote:Obviously things change, but they already tried to sell the PM quite a few times. Heck they tried to sell it to CP when CP still used it, and they didn't want it. I'm not sure who would want in after CSX lost over half the traffic.

Unless of course, they are offering one heck of a deal. That changes everything. The strategy they have outlines goes something like "we don't want to own all that marginal trackage but we would love to make the revenue from it", which tells me perhaps they will sell it for a song with paper interchange barriers to anybody but CSX.

Just my 2c which ain't enough to buy a branch line...
CP actually tendered an offer to CSX, and CSX rejected it. Each time a deal was floated CSX asked for or wanted too much to close the deal.

And "half the traffic" is not gone off the PM between Plymouth and Porter. Factor in the shortlines feeding traffic and the base is still quite strong.

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Re: CSX reviewing lines for potential sales

Unread post by atrainguy60 »

Saturnalia wrote:And "half the traffic" is not gone off the PM between Plymouth and Porter. Factor in the shortlines feeding traffic and the base is still quite strong.
I was wondering, doesn't CSX actually have a large amount of online customers on the line?

Also, the B&O main is staying:

http://trn.trains.com/news/news-wire/20 ... sand-patch


EDIT: Nvm, I checked the wiki, and I counted around 65 online carload customers.

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Re: CSX reviewing lines for potential sales

Unread post by BamaSubdivision94 »

tadman wrote:Obviously things change, but they already tried to sell the PM quite a few times. Heck they tried to sell it to CP when CP still used it, and they didn't want it. I'm not sure who would want in after CSX lost over half the traffic.

Unless of course, they are offering one heck of a deal. That changes everything. The strategy they have outlines goes something like "we don't want to own all that marginal trackage but we would love to make the revenue from it", which tells me perhaps they will sell it for a song with paper interchange barriers to anybody but CSX.

Just my 2c which ain't enough to buy a branch line...
A shortline.

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Re: CSX reviewing lines for potential sales

Unread post by penn central »

Im taking a wait and see attitude. So far in Trains News Wire it mentioned the only subdivisions going first are in Florida and Illinois. It mentioned so far in Illinois the Decatur and Danville Subs. I wonder if the New Rock Sub is being considered. (The old Rock Island) west of Joliet for about 30 miles to Seneca Ill. Iowa Interstate west of there.

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Re: CSX reviewing lines for potential sales

Unread post by Typhoon »

penn central wrote: I wonder if the New Rock Sub is being considered. (The old Rock Island) west of Joliet for about 30 miles to Seneca Ill. Iowa Interstate west of there.
Kind of hard to sell something you don't own. The New Rock is leased. It is also a big money maker, lots of chemical and frac sand traffic.

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