Well, to be sure, as a railfan, this whole deal renders my emotions all over the place. However, as a retired professional railroader, I have to remind folks, that the railroad is a business answerable to the stockholders of the company. Sure, we my ruminate over the loss of steam programs or heritage units. However, the railroad is a business, first and foremost.
So, with that in mind, we need to keep things in perspective. E.H.H. is a brilliant operating man. No doubt about that, he knows how to run trains, first and foremost. That is the heart of the railroad. How well the company does or doesn't serve its customers will be the key. Once the fat is cut out, there comes a time when other considerations take over. Witness what happened at CN. Mr. Harrison, took a moribund operation and trimmed it to the lean meat. Cut out the fat and moved trains with efficient operations. No doubt about that. He did the same at CP.
The time eventually came wherein the Board and the Customers expected another level of service and relations. Hence, the end of Mr. Harrison's tenure at CN. Look at their numbers. The traffic levels have remained relatively stable in spite of the collapse of the Energy sector (I.e. Coal and Oil - neither of which CN was overly dependent upon). The current Management of CN, has been able to maintain the same levels of efficient service while keeping and growing customer traffic.
These companies aren't run for the convenience of the Railfan community. We need to get over that. When a company such as NS or UP runs special trains and steam excursions, they do so out of goodwill and public exposure. Regardless of our personal desires to maintain such operations, they in reality are somewhat of a frivolous expense in comparison to operating trains for the benefit of the customers who pay the bills.
The real "Wizard" behind the curtain is Bill Ackman and his Pershing Square Capital Partners. Personally I have seen upsides and downside of his methodologies. Look at what happened to his involvement in JC Penney and Herbalife. However, one feels about his methods, he shakes things up. Time will tell how this all shakes out.
What we may end up seeing is what has been emerging during the past couple of days in the news. Joint ownership of both properties by Pershing Square and EHH taking the reigns of NS and Keith Creel taking the reigns of CP.
Even at that, subject to STB review, it may trigger another scenario where the Two Major Western Roads and CSX and NS end up consolidating. Either way, some pretty exciting times in the railroad industry.
Full disclosure here, I am a former CN employee and my wife works at a local JC Penney. The opinions expressed herein are my own observations and I also own some CSX Stock.
another question.... Why would CN & CP hire Harrison?? WE must have qualified people here... That's my 2 cents.... Even Our Hudson bay company is not owned by Canadians anymore. It was the oldest company in Canada. Bottom line,, know how you feel.
p51 posted:
Recently the US administration is not a fan of big business and big mergers or take overs! 