Shakeup of CP Board may put Hunter Harrison in Charge

[MQT3001]

Sorry I forgot to mention it, and is currently a little outlandish, but a dozen each way was if they all ran via the PM (nothing north of L. Superior)...but I don't know the exact numbers.

How many trains does CP run up there per day anyway?

[TrainWatcher]

I can think of 7 off the top of my head, and that does not include the new crude/ethanol trains, or extras.

[GTW6401]

Who? Everyone else who would be interested already owns routes that parallel the D&H. It gives CP access to New York City, and competition to that market. That would be REALLY intelligent, selling access to the largest east coast market. Do you even think about what you're saying before you hit 'post' in your quest to somehow catch AARR?

CP recently gave up on traffic to New York City itself. CP agreed to eliminate its twice weekly train from Albany to NYC, which only averaged about 30 cars - mostly for the New York and Atlantic RR. This train was part of the trackage rights given to CP after the Conrail split. CSX handles the NYC traffic now.

The D&H has always had more activity around Binghamton and Albany, while Conrail was the big player in the NYC/North Jersey area.

[CharlieX90]

They aren't going to buy the former PM. They had their chances over the last ~20 years of running trains over it. They are content to be at the mercy of 'the other guy'. Why shouldn't they be? Probably have some sort of 'performance' payments written into the contract with the host, they don't have to maintain the physical plant, and in the case of Elkhart they don't have to pay the other railroad for the crews.

Hunter has a pre-formulated pattern. Used it at the IC, and then GTW. Cut physical plant, anything you deem 'excessive' get rid of it. Then run fewer trains with longer consists. Stock holders love it, less expenses. Customers throw their arms up.

But didn't Hunter Harrison prefer "complete control" over his trains when he was at CN insted of running his trains on other lines, he tried to keep his own trains on his own rails? I read that somewhere, but I couldn't remember if that was in Trains magazine or not. Anyways, isn't it an issue that CP is DPU testing trains east of Windsor that would need to be cut to go across Michigan since NS would most likely not have the capacity/ qualifications for? Obviously the Thunder Bay routing loses time for them to get to Chicago and points west and they have many problems with it during the winter months such as high snowfall north of Lake Superior. CP should just bite the bullet and buy the CSX from Chicago to Detroit. The basic infrastructure for CP is there and CSX does not fully utilize it anymore except for local traffic. The line is built for the operations CP would like to do, but CSX's current operations do not take advantage of it's infrastucture nor is it really needed for CSX's main system. I see CP could benifit Grand Rapids for reclassifying trains and remove congestion out of Bensenville and take the congestion outside of Chicago like other Class Is are trying to do. That's just my 2 cents whether it's realistic or not.

22T ran straight from Chicago via the NS with a 1+1 setup (DPU on the rear) as did 23T so apparently it doesn't make a difference with NS.

[EJ&ESDM809]

Rumors have been floating about CP selling the DM&E off again. http://www.bloomberg.com/video/85826728/

[AARR]

Rumors have been floating about CP selling the DM&E off again. http://www.bloomberg.com/video/85826728/

Another line that needs a lot of upgrading and infusion of capital to make it run fluid. Might not be worth the cost though considering it dead ends in no mans land. Is it clay at the end of the line that keeps it running to Rapid City?

[Chrisracer8903]

Rumors have been floating about CP selling the DM&E off again. http://www.bloomberg.com/video/85826728/

Another line that needs a lot of upgrading and infusion of capital to make it run fluid. Might not be worth the cost though considering it dead ends in no mans land. Is it clay at the end of the line that keeps it running to Rapid City?

DME was part of CP's move to get to Powder River and had future plans of capitalizing the DME to Rapid City, SD and south to Crawford, NE including building new trackage beyond where the DME currently ends in Crawford, Nebraska. With the EPA and all the regulations that are killing coal, it's safe to say CP scrapped the idea since they "shortlined" the line to Crawford (Most southern-end of the DME) to the Nebraska Northwestern a few years ago. I could never see CP keeping a line that saw a train come down to Crawford one day, return to Rapid City the following day, and operate this way only 2-3 times a week. The only time I ever witnessed the DME come into Crawford, NE, it was one SD40-2 and 8 stinkin' freight cars for the BNSF interchange, none of the cars were on-line customers either.

[Y@]

No way will CP get rid of the DME. Rumors are just that, rumors.

[AARR]

No way will CP get rid of the DME. Rumors are just that, rumors.

From what I have read Y@ is right and DME is not on the table at this time. However, from what I have read it needs additional sidings and yard tracks to work fluidly.

[sd70accsxt700]

No way will CP get rid of the DME. Rumors are just that, rumors.

Um its no rumor. Did you watch the video, the CEO of the company that is takin over said as much in the interview. Saying that it was a mistake, and that unless they find a way to make it work its, gone.

[Chrisracer8903]

Is it possible that the DME could be restored to the way it was before CP? I assume the ICE will remain part of CP.

[sd70accsxt700]

Is it possible that the DME could be restored to the way it was before CP? I assume the ICE will remain part of CP.

Ok I know I am going to sound like a ass, but what time before the CP? The latest time or the time before, or all the way back to when they got it from MILW? And before anyone questions it, yes the SOO was CP back then.

[Chrisracer8903]

Is it possible that the DME could be restored to the way it was before CP? I assume the ICE will remain part of CP.

Ok I know I am going to sound like a ass, but what time before the CP? The latest time or the time before, or all the way back to when they got it from MILW? And before anyone questions it, yes the SOO was CP back then.

Before 2007.

[Standard Railfan]

I will now throw a hand grenade into this whole conversation.

Wall street loves Hunter Harrison. His employees, his customers, his suppliers and just about everyone else despises him.

Hunter Harrison will not fix CP. CP has a long term structural problem. Yes a better operating ratio will help but only for a short period of time. To fix CP will require a CEO of vision. Remember, Canadian National was a mess prior to 1992 when Paul Tellier was named CEO of the then Crown Corporation.

I will admit that Tellier's cost cutting and Harrison's operations focus were major factors in the CN's recovery. More importantly, growing revenue, seeking entry into new markets, and reshaping the railroad to match the changes in the transportation marketplace were the keys to CN's recovery. Cutting costs is easy compared to the last three ideas which require vision and creativity to identify and implement successfully. I do not believe Harrison has enough of either.

Before Harrision came aboard with the rest of the IC boarding party, CN and WC had already started building longer sidings to run long, long trains. This foresight by two talented management teams allowed Harrison to look like a genius when all he did was follow the well worn path of railroad managers since someone got an idea to build a bigger locomotive than the John Bull.

CN named a tunnel after Tellier. I can't wait for the dedication of the E. Hunter Harrison culvert.

Sorry for the rant. I do feel better though.

[AARR]

Some think Tellier walked into a good situation. I think Tellier was a good leader with a solid vision and plan to get CN to the next level. He recognized CN's strengths and weaknesses and balanced them with the prosperous economy.

One of his few visions that did not pan out was CN's effort to dominate intermodal business. They do not have near the volume they had projected but what they do have is very profitable.