CFE traffic picking up
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redside20
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CFE traffic picking up
From the Fort Wayne rails site, CFE has added a yard job in Fort Wayne and also a job in Lima as well and also have been hiring conductors. CFE trains between Lima/Fort Wayne to Chicago have been growing steadily from 30-40 cars to 80-100 cars when the trains run two to three times a week. The contribution to this business from Bunge in Delphos Ohio and the SDI plant near Fort Wayne. Also it is been reported that grain and feed business are picking up because the IORY and CFE are exchanging grain hoppers that are being shipped from an Elevator in Washington Court House Ohio to Decatur Indiana
Exit stage left
Re: CFE traffic picking up
Thanks Lukas. I like to keep up with the IORY / CFWE families.
PatC created a monster, 'cause nobody wants to see Don Simon no more they want AARR I'm chopped liver, well if you want AARR this is what I'll give ya, bad humor mixed with irrelevant info that'll make you roll your eyes quicker than a ~Z~ banhammer...
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redside20
- i don't give a fark about your PM
- Posts: 3513
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- Location: Columbus Ohio
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Re: CFE traffic picking up
most welcome Don 
nice to see CFE picking up business despite what CSX charges them to run on there railroad, and governing what traffic they can run. Its certainly David vs Goliath when it comes to what obstacles, challenges and adversity the CFE faces. Lima is an important and crucial interchange point with the most important connection coming from CFE's sister railroad IORY where traffic is forwarded too or vice versa traffic to/ from michigan/canada/northern ohio or south from Cincinnati and the south central ohio area with agricultural/bulk products being shipped from Washington Court House,Bloomingburg,South Charleston areas as well as Springfield. Norfolk Southern and CSX give the CFE their share of traffic and an occasional visit by the Wheeling.
nice to see CFE picking up business despite what CSX charges them to run on there railroad, and governing what traffic they can run. Its certainly David vs Goliath when it comes to what obstacles, challenges and adversity the CFE faces. Lima is an important and crucial interchange point with the most important connection coming from CFE's sister railroad IORY where traffic is forwarded too or vice versa traffic to/ from michigan/canada/northern ohio or south from Cincinnati and the south central ohio area with agricultural/bulk products being shipped from Washington Court House,Bloomingburg,South Charleston areas as well as Springfield. Norfolk Southern and CSX give the CFE their share of traffic and an occasional visit by the Wheeling.Exit stage left
Re: CFE traffic picking up
I hate to say it, but the CFE doesn't move much IORY traffic. 95% of the IORY traffic moves via CSX. A few years ago when the railroads were super busy, a lot of IORY traffic was handled by the CFE. CSX's capacity on their Chicago line was full. So they just let the CFE move the cars and didn't charge them a LAC fee on each car. Now under the CFE lease, CSX gets a cut of the price for every car that moves over the CFE's line. Example: Lets say CFE gets $1200 for car of lumber, CSX gets $400-$500 of that bill. But since traffic dropped off last year, CSX moved most of the IORY traffic back to their rails. Don't get me wrong some IORY traffic does move via CFE.
The CFE has a really BAD lease with CSX. The lease states anything that moved via CSX before the lease has to stay on CSX rails. If that traffic is taken off CSX rails and moved via CFE there is a Lease Acquisition Charge(LAC). I think it's around $800-$900 per car paid by CFE to CSX. Any new traffic that the CFE drums up during the lease has to be interchange to CSX. It can not move through anyone else or there will be a LAC charge. Example: If company X locates on the CFE and ships a car out for Colorado it has to go to Lima to be interchanged to CSX. If it went through the IHB to UP or BNSF there would be a LAC charge.
The CFE does interchange with the NS on Fort Wayne, but that was in place before the lease so there is no charge. But no new traffic can be interchange with NS, just whatever they were handling before the lease.
Everything the CFE picks up at the IHB is for customers on the CFE line and a little IORY traffic.
Again, I don't know the lease word for word . This is what I know and could very well be WRONG. If anyone knows more please post it!!
So as you can see CSX has the CFE by the balls.
The CFE has a really BAD lease with CSX. The lease states anything that moved via CSX before the lease has to stay on CSX rails. If that traffic is taken off CSX rails and moved via CFE there is a Lease Acquisition Charge(LAC). I think it's around $800-$900 per car paid by CFE to CSX. Any new traffic that the CFE drums up during the lease has to be interchange to CSX. It can not move through anyone else or there will be a LAC charge. Example: If company X locates on the CFE and ships a car out for Colorado it has to go to Lima to be interchanged to CSX. If it went through the IHB to UP or BNSF there would be a LAC charge.
The CFE does interchange with the NS on Fort Wayne, but that was in place before the lease so there is no charge. But no new traffic can be interchange with NS, just whatever they were handling before the lease.
Everything the CFE picks up at the IHB is for customers on the CFE line and a little IORY traffic.
Again, I don't know the lease word for word . This is what I know and could very well be WRONG. If anyone knows more please post it!!
So as you can see CSX has the CFE by the balls.
Re: CFE traffic picking up
I understand TG. Thanks.
PatC created a monster, 'cause nobody wants to see Don Simon no more they want AARR I'm chopped liver, well if you want AARR this is what I'll give ya, bad humor mixed with irrelevant info that'll make you roll your eyes quicker than a ~Z~ banhammer...
Re: CFE traffic picking up
My understanding of the leases CSX did about 5 years ago was that any existing business had to remain interchanged to CSX. Hence the reason you see all the stuff going via CSX now. Any NEW business that the new leasor drummed up, could move however they choose. For the most part, most of the railroads CSX leased were usually only connected to CSX in one form or another, or the business was such that it favored going via CSX anyway. Not sure if the CFE and has been able to coax any new industry to their line or not?That Guy wrote:Again, I don't know the lease word for word . This is what I know and could very well be WRONG. If anyone knows more please post it!!
So as you can see CSX has the CFE by the balls.
In addition, the new operator had to meet certain "Service Requirements" to keep the lease. If their service deteriorated, then CSX would step in and retake the line, or probably find a new sucker...I mean railroad...to take up the lease. This was a clause that would allow CSX to break the lease if they needed to.
Practice Safe CSX