The Locomotive On My Other T Shirt

This is the Canadian National GE C44-9W locomotive on my other T shirt that I got at a train show.

Eyes on BNSF for Merger's

Western Railroad Discussion > Eyes on BNSF for Merger's.

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Date: 11/18/05 15:56
Eyes on BNSF for Merger's.
Author: Nbetween

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Press reports suggest BNSF Railway, awash in cash, may be considering new merger opportunities that would give it significantly increased market power and a truly North American presence in Mexico, the U.S. and Canada.
An international rail consultant was quoted Nov. 16 by the Canadian Press saying that BNSF may again attempt a merger with Canadian National Railway, which also controls the former Illinois Central, Grand Trunk Western and regional railroad Wisconsin Central.

An article in a transportation law publication in November speculates BNSF may make a grab for Kansas City Southern, which also controls the Tex-Mex and Mexico's TFM railroad.

Rail mergers have been devastating to rail employment. As the number of Class I railroads declined from 39 in 1980 to 7 today (due mostly to consolidations), the number of Class I railroad employees has declined from 458,000 in 1980 to under 155,000 today.

Those who follow mergers have their eyes on BNSF.

Wall Street analysts report that BNSF will have some $2 billion in so-called "free cash" to spend over the next 26 months. That cash could be spent increasing the dividend paid investors, buying back its own stock (which reduces shares available and lifts the stock price), or on acquisitions.

BNSF is North America's second-largest railroad (to Union Pacific), operating some 32,000 miles of railroad and collecting some $10 billion annually in freight revenue. (UP operates slightly more mileage than BNSF, but earns some $12 billion in freight revenue annually. A BNSF combination with KCS or CN could propel BNSF ahead of UP.)

According to international railroad consultant Charles Banks, CEO of R.L. Banks and Associates of Washington, D.C., the most logical partner for CN would be BNSF. (In 2000, BNSF and CN voluntarily canceled merger plans after U.S. regulators imposed a 15-month freeze on railroad consolidations while new rules were written.)

Meanwhile, a publication of the Association of Transportation Law Professionals (the bar association of the U.S. Surface Transportation Board), carried an article suggesting BNSF may have interest in acquiring KCS.

Some analysts think a BNSF/KCS combination is much more likely than a renewal of the BNSF/CN consolidation.

The reason could be KCS' Meridian Speedway, KCS' control of the Tex-Mex, and KCS' subsidiary TFM, a major Mexican railroad running from Laredo, Texas, to Mexico City and serving key Mexican ports at Monterey (east coast of Mexico) and Lazaro Cardenas (west coast of Mexico).

The KCS Meridian Speedway -- linking Meridian, Miss., with Dallas -- is the fastest growing and least congested rail route in America.

KCS' Tex-Mex subsidiary links Houston to the busiest U.S.-Mexico border crossing at Laredo.

BNSF is said to be especially interested in rail access -- through KCS and TFM -- to the Mexican port of Lazaro Cardenas, on the southwest coast of Mexico.

TFM controls all tracks into and out of the Port of Lazaro Cardenas, and is spending $12 million to improve its rail-monopoly access.

The Port of Lazaro Cardenas is 600 rail miles closer to Houston than the severely congested mega-ports of Long Beach/Los Angeles; Lazaro Cardenas is only 200 miles further from Chicago than Long Beach/Los Angeles; and the Port of Lazaro Cardenas is the closest to Mexico City, whose population is some 22 million.

Labor costs are said to be 30 percent cheaper at the Port of Lazaro Cardenas than U.S. ports, which has attracted the interest of retail giants such as Wal-Mart. It is reported that Wal-Mart is working with ocean carrier Maersk to invest in additional port capacity at Lazaro Cardenas, and terminal operator Hutchison Wampoa already is in the process of increasing the port's capacity 10-fold.

Meanwhile, the Wall Street firm of UBS projects TFM rail-freight revenue associated with port traffic will grow from $29 million to as much as $225 million by 2025 because of Lazaro Cardenas port expansion and increased Asian imports.

UBS projects the Port of Lazaro Cardenas will be handling some two million containers by 2025, which compares to nine million now at Long Beach/Los Angeles and under two million now at the ports of Oakland, Calif., and Seattle.

All mergers involving U.S. railroads must be approved by the U.S. Surface Transportation Board, which, with very few exceptions, has approved most rail mergers presented to it, notwithstanding substantial opposition by shippers and rail labor.

For example, over the past two decades, Union Pacific gained approval to acquire the former Western Pacific, the Missouri Pacific, the Chicago & North Western, and the Southern Pacific.

BNSF, meanwhile, is the combination of the former Burlington Northern and the Atchison, Topeka & Santa Fe.

Among the very few rail mergers rejected by the U.S. Surface Transportation Board was the 1984 proposed merger of the Santa Fe with the Southern Pacific. And, as mentioned, BNSF and Canadian National voluntarily canceled their merger attempt in 2000. 

The Expanded N Scale Layout Progress Report

Progress on the expanded N scale layout is slower than I had hoped it would be, but I am determined to take my time to get exactly what I want. I am still in the process of buying up the track I need to get the expanded layout. I have the innerloop completed and I am working on getting the outerloop done.
I have all the locomotives I need for two freight trains, one Canadian National and one Canadian Pacific. The Canadian National Rolling stock is completed and ready to go on the track I still have a lot more Canadian Pacific rolling stock to get before I can call that train complete.

From the look of the size of the track layout I will need to build 4 4X8 tables to accomodate the layout. they will form a U shape.

My Expanded N Scale Layout

I am almost ready to build the tables to put the layout on. I will need to build 3 or 4 4X8 tables where I can set up the track. I will have 2 loops in the configuration shown above. One loop will fit inside the other. On the inner loop I will run a Canadian Pacific Freight Train. On the outer loop I will run a Canadian National Freight Train. I still need to buy the balance of the track that I need, I have most of it already. I am thinking I am still about 2 years away from completing the tables and track.

The N Scale Canadian National Layout Is Nearly Complete

After a long time collecting the pieces necessary to complete the layout, I find that I have all I need to complete the Canadian National side of the layout. I still have to complete the Canadian Pacific side. Once that is done I can build the tables necessary to support the combined layout. I figure it will take me a few years to get the Canadian Pacific side ready to go.

The basic track layout design loosely follows the diagram shown below:

There will be Two parallel tracks on seperate transformers. Once the Tables are built I can lay out the track and begin collecting the buildings and start on the landscaping.

Canadian National Part of Large N Scale Layout

EMD GP38-2

EMD GP38-2

Lead by 2 GP38-2's My Canadian National portion of the expanded N scale layout is nearly complete. I only need some more track to complete the Canadian National side of the effort. 

Then I go to work on the Canadian Pacific side of the layout.

GE ES44AC GEVO

GE ES44AC GEVO

I am still looking for the rolling stock and I need a lot more track. Once I have the track and the rolling stock I will begin to build the tables to put the layout on. the nice part about putting the layout together is that I have the time to wait so I get only the items I am looking for. I think this layout will be the best I have put together so far.

The Expanded N Scale Layout

The Expanded N scale layout will be 2 tracks that run parallel following the basic design shown above. The inner track will feature the Canadian Pacific Railway. and the outer track will feature the Canadian National Railway. Both railways will be depicted by Freight trains. There will be considerably more space between the 2 end loops shown above to allow for a much longer streight away section and also allowing the operator room to walk between the end loops. to allow ease in landscaping and fixing any derailments.

The Canadian National Locomotives Are In

After a long  wait the Canadian National locomotives finally came in from Walthers to Mountain Town Hobbies in Mt Pleasant Michigan. The 2 EMD GP38-2's made by Walthers have been on back order for months. My Canadian National effort is finally finished.

My enhanced N scale layout is progressing along I am now working on the Canadian Pacific side of the layout.

Checking on my Canadian National Locomotive Order

I have had an order in for 2 Canadian National EMD GP38-2's from Walthers their web site shows that they are in stock. but as of yet they have not been delivered to Mountain Town Hobbies in Mt. Pleasant Michigan.

The only things I am waiting for on the Canadian National side of the expanded N scale layout is the locomotives. They were scheduled to arrive January 28th. I wonder if Walthers lost my order.

Back To The N Scale Layout

Now that National Hobby month is over, I return to the planning of the expanded N scale Canadian National and Canadian Pacific layout. word on the street is that the Canadian National Locomotives are in at Mountain Town Hobbies the rolling stock is already set.

I already have a Canadian Pacific locomotive I am just waiting to pay for the rolling stock. All in all the layout is coming together really well.

The Canadian Pacific Locomotives Are In

Yesterday I got word that the Canadian Pacific Locomotives have arrived at Mountain Town Hobbies in Mt. Pleasant Michigan.

 

 

 

I have yet to get together the rolling stock I need to support the Canadian Pacific Freight Train I am putting together.

 

 

 

I am still waiting for the Canadian National Locomotives to come in from Walthers they were supposed to ship December 28th 2014 but the shipping date was revised by Walthers to Jan 28th 2015. once they come in my Canadian National Freight train will be complete.

 

 





I Have All The Canadian National Rolling Stock I Need

I now have all of the rolling stock I need for the Canadian National N scale layout I am putting together. I have 2 40 foot boxcars, 2 50 foot reefers, 1 60 foot boxcar, and 1 50 foot double door boxcar, 2 tank cars, 2 coal hoppers, and 2 gondolas and finnaly a baywindow caboose. This makes up a very nice freight train for the outer loop.

Front Half of the Freight Train



Back Half of the Freight Train

I figure it will take me a few years to get together everything I will need for the entire layout. The inner loop will be a Canadian Pacific freight train.

Revised Concept For New N Scale Layout

Canadian Pacific Logo as of 2014

Canadian National Logo as of 1960



Canadian National Railmap

Canadian Pacific Railmap

The 2 major Canadian Railways; The Canadian National Railway, and The Canadian Pacific Railway, both have trackage in the State of Michigan. Therefore I believe it fitting to model both of them in my new N scale layout. The plan as it now exists include two tracks, one I will devote to the Candian National Railway and the other I will devote to the Canadian Pacific Railway.

The inner track will be used for the Canadian Pacific freight train, and the outer track will be used for the Canadian National freight train. The train table is not going to be built for a while yet as currently there is no place to put it. I am currently accumulating the rolling stock for the Canadian National effort and the track needed to complete that phase of the project.





Early Canadian National Logo

Early Canadian Pacific Logo

It is my plan to work slowly on this effort so that it will last for many years to come I am in no hurry to complete this project. I just want to do it right.


On The 4th Night of Hanukkah

On The 4th Night of Hanukkah My Family gave to me (actually Veronica and the grandkids) 4 N scale freight cars: 2 tank cars, a coal car and a covered hopper. This puts me closer to the rolling stock needed for my Canadian National layout I am putting together. I still need a lot more track and a space to put it. It is slowly comming together.

My Inventory Is Growing

I have been using the program called "Yard Office" to log my inventory of Locomotives and rolling stock that I have collected to support my hobby of model railroading. I have managed to log in all the stock into this program which allows me to print off a wide variety of reports. I can also create custom reports. so my every need is met with information on my stock at my fingertips. I have concentrated primarily on HO scale and supplemented my inventory with G scale to occupy my summers. There is a large G scale track out in my backyard.

Lately however, I have become interested in N scale. I began by creating a coffee table layout featuring an Ann Arbor freight train. The layout is progressing along and will provide me with a lot more hours of enjoyment as I complete the landscaping.

I have planned a new much larger N scale layout that is still in the planning stages. My plan is to have two tracks powered by separate transformers allowing each track to run a train independently. The first track I have already decided will be a Canadian National freight train I have already began to accumulate the rolling stock and the track to support this effort.

The second track I have not yet began to plan out so far I was thinking a passenger train would be nice.
I began pricing the passenger cars in N scale and discovered the cost is a bit prohibitive. so I am still wide open as to what the second track would run.

Lastly I began putting together an HO layout for my grand kids. Its a BNSF freight train. So far I have been working on creating a model of their house and barn.