railfan.com/railnews
Three Canadian F59PHs Join Metra Fleet
Metra’s refurbished EMD F59PH No. 97 leads a train away from the city of Chicago towards the coach yard during the morning rush on November 16, 2015. Built in 1988 for GO Transit, the units were later leased by Montreal’s Agence Métropolitaine de Transport until 2010. Acquired by Metra last spring, Nos. 526, 530, and 532 were cycled through Norfolk Southern’s Juniata Shop before making their way to Chicago. Metra No. 97 was released to revenue service during the first week of November wearing the same style paint that is applied to the MP36 fleet.
PHOTO BY CASEY THOMASON
requests, however, were similarly denied. Meanwhile, proposals for operation
of the passenger train to Hearst were due to CAPT on October 30, 2015, and it appears that three unnamed proponents had submitted full business case proposals. All the submissions will be evaluated on criteria that include asset requirements by CN, federal and regulatory requirements, funding requirements by Transport Canada, and other requirements put in place by the City of Sault Ste. Marie. This request for proposals comes
after Railmark, the original proponent picked by the City to run the service, was unable to meet certain financial requirements and suddenly halted the service in July 2015. A business case study asserted that the passenger train service puts more than C$38 million into the region’s economy thanks to property investment and tourism. Chartered in 1899, the former Algoma Central was acquired by Wisconsin Central in 1995, which in turn was acquired by Canadian National in 2001.
CANADIAN PACIFIC JAY BROOKS
Norfolk Southern Turns Down CP Bid
The news of an unsolicited offer of
by Canadian Pacific to acquire Norfolk Southern emerged during the first week of November setting off a flurry of speculation and stock market activity for both companies. CP’s chief executive officer E. Hunter Harrison met with Norfolk Southern’s president and CEO James Squires to discuss the possibility of a merger or another type of partnership.
A combined CP and NS would create a system that would reach from coast to coast and down to the Gulf of Mexico with a combined market value of about $47 billion. CP previously approached CSX in 2014 with an unsolicited merger proposal, and was promptly rejected. On November 17, CP went public with
its $28 billion proposal to acquire NS, despite the company’s current market valuation of $26 billion. Funding for CP’s potential acquisition was bolstered by $14.2 billion in financing from JPMorgan Chase & Co. Many of Harrison’s goals for the merger included greater operating efficiency, exploring the potential for “open access” for shippers, and diverting traffic from the congested Chicago hub. As Harrison prepared to campaign NS shareholders directly, Norfolk Southern’s board of directors unanimously rejected CP’s unsolicited offer on December 4. “We believe that Canadian Pacific’s short- term, cut-to-the-bone strategy could cause Norfolk Southern to lose substantial revenues from our service-sensitive customer base,” Squires said in an official statement. The board felt that CP’s offer undervalued the company, would face substantial regulatory barriers from the STB, and would not fulfill efficiency goals or reduce Chicago terminal congestion. In the December 4 announcement, Squires also expressed displeasure at how he was initially approached by Harrison, and the subsequent portrayal in the media that the two companies were engaged in ongoing merger talks. At issue was Harrison’s and CP controlling shareholder and “activist investor” Bill Ackman’s alleged refusal to enter into a standard confidentiality agreement. Several follow-up requests for additional information by Squires were also not met.
“Accordingly, the board has unanimously rejected your proposed transaction.” —JAY BROOKS AND OTTO M. VONDRAK
CSX TRANSPORTATION CHASE GUNNOE
Uncertain Future for CSX Santa Train
The 73rd Annual CSX Santa Train completed its run over the former Clinchfield route on November 21, 2015. With the closure of 22 miles between McClure and St. Paul, many expect this to possibly be the final run of the legendary train that delivers toys and food to communities along the 110-mile run from Shelby Yard in Pikesville, Ky., to Kingsport, Tenn. More than 15 tons of donations were distributed as the train made 14 stops along the way. Photographers were out in force to capture what could be the last run of the Santa Train over the northern segement of the former Clinchfield Railroad. Ten cars from the CSX executive fleet
made up this year’s train, including power car Kentucky (Pullman, 1950), Mississippi (Pullman, 1923), Greenbrier (1915), New York (Pullman, 1925), Tennessee (Pullman, 1958), Ohio (Budd, 1948), Louisiana (Pullman, 1917), Michigan (Budd, 1951), Illinois (St. Louis Car Co., 1953), and West Virginia (St. Louis Car Co., 1953). The original Santa Train was started
by the Merchants Bureau of Kingsport and Clinchfield Railroad in 1943. Operation of the Santa Train is co- sponsored by CSX, the Kingsport Area Chamber of Commerce, Food City, and Dignity U Wear. —O.M.V.
9
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74