End of MQT as we know it?

[Deskjockey]

I know, I hate these kind of posts and the rumors they start.

However, I got some information from a CSX worker that CSX will not renew the lease to MQT rail (G&W).

He went on to say that CSX has even sent hi-rails up the line to ascertain the condition of it.

This is terrible news if true, because MQT is by far my favorite rail line.

Can anyone confirm or deny this tidbit?

[Saturnalia]

MQT's lease is up for renewal soon. CSX has the option to take the line back over at the end of the lease, or they could negotiate with G&W for an extension. These are well-known facts.

What is uncertain and subject to rumor is whether or not CSX will decide to re-acquire or not. It does sound like the MQT is a reliably profitable enterprise with lots of online traffic. Whether or not the economics would still work under a Class One is debatable. CSX does already benefit from having exclusive rights to all traffic off the MQT, so it's kinda nice for them not to have to do the local work but have a bunch of traffic arrive on their doorstep. The juice may not be worth the squeeze to have to do the branchline work in addition.

I would surmise that CSX probably is at least looking into which decision they should make, which would probably include hy-rail inspection trips, evaluation of traffic levels, etc.

[joeyuboats]

I am on the other side of the state, and have never seen MQT RAIL. But, understand that they have a pretty good reputation, with their customers. I can just imagine CSX taking over MQT, ignoring the customers, and then loosing all the good will, that MQT has built.Personally-- don't like Class 1's, as they tend to screw things up real good. Let MQT be, and all will be OK.

[Deskjockey]

MQT's lease is up for renewal soon. CSX has the option to take the line back over at the end of the lease, or they could negotiate with G&W for an extension. These are well-known facts.

What is uncertain and subject to rumor is whether or not CSX will decide to re-acquire or not. It does sound like the MQT is a reliably profitable enterprise with lots of online traffic. Whether or not the economics would still work under a Class One is debatable. CSX does already benefit from having exclusive rights to all traffic off the MQT, so it's kinda nice for them not to have to do the local work but have a bunch of traffic arrive on their doorstep. The juice may not be worth the squeeze to have to do the branchline work in addition.

I would surmise that CSX probably is at least looking into which decision they should make, which would probably include hy-rail inspection trips, evaluation of traffic levels, etc.

Thank you for the input.
BTW your video series is incredible.

[SD80MAC]

While I could see G&W not renewing their lease, I do not see CSX keeping the line. I'm sure if that were to happen (which seems unlikely, first and foremost), they would put it up for bids again. I'd love to see LSRC get it.

[AARR]

The Hamilton Northwestern Group

I'd love to see LSRC get it.

[Erroneous Monk]

The Hamilton Northwestern Group

I'd love to see LSRC get it.

Isn't it the same owner as MQT before the sale?

[AARR]

I think LSRC was an original owner

The Hamilton Northwestern Group

I'd love to see LSRC get it.

Isn't it the same owner as MQT before the sale?

[pudgy]

The Hamilton Northwestern Group

I'd love to see LSRC get it.

Isn't it the same owner as MQT before the sale?

MQT was officially originally set up as a startup, employee owned shortline with no corporate ties beyond it's investors. It was sold to Rail America in 2013? who was then shortly after merged/bought by Genesee and Wyoming in a mega shortline deal. Lake State was an independent and may have recently gotten some corporate backing, but not involved with G&W or Watco, I don't believe.

[NS3322]

Lake State was an independent and may have recently gotten some corporate backing, but not involved with G&W or Watco, I don't believe.

Antin Infrastructure Partners

[Erroneous Monk]

The Hamilton Northwestern Group

Isn't it the same owner as MQT before the sale?

MQT was officially originally set up as a startup, employee owned shortline with no corporate ties beyond it's investors. It was sold to Rail America in 2013? who was then shortly after merged/bought by Genesee and Wyoming in a mega shortline deal. Lake State was an independent and may have recently gotten some corporate backing, but not involved with G&W or Watco, I don't believe.

Okay I phrased it wrong, were the same people who started Marquette Rail also the same people behind HNW? I thought that's what I remembers but could be wrong.