Pershing Square to exit railroading

[Lenny53]

Looks like Hunter will be all on his own;

http://trn.trains.com/news/news-wire/2016/08/03-ackman

[Missaberoad]

This is nothing but a good thing for the company. Now they can rebuild and start running a railroad again.
Its a shame its been years of scrapping, selling and firing just to have Ackman sell the hulk. 

but I suppose that's big business.

Wonder what Fred Green is doing? 

[C855B]

Obviously announced after the exchanges closed. Thank goodness I don't have a position in CP; tomorrow will be brutal.

They made their money - roughly doubled in four years.

[Lenny53]

Obviously announced after the exchanges closed. Thank goodness I don't have a position in CP; tomorrow will be brutal.

They made their money - roughly doubled in four years.

Stock is down 7 bucks already this morning.

[C855B]

Opening dip. Only down 4.63 as of two minutes ago. A 3% hit for an announcement like that is very mild.

CP did well in the four years - much better than the other Class Is, about 50% better than the next best, UP. (No performance data on BNSF. You know why.) So what Ackman did may have crapped on the railroad, but stockholders certainly liked it. Typical invest/sell pattern for a high-capital asset, as it takes roughly five years for the under-investment in maintenance, layoffs, etc., to start negatively impacting the balance sheet due to poor performance and subsequent client loss. You get out before that happens. Proof in this particular pudding is 10-year performance numbers, where UP and CP were a close match, and that only due to the Ackman tweaks in the last four years.

[lock4244]

CP just lost a few big contracts... all of GM business out of Oshawa, Ontario, and the Canadian Tire contract (domestic containers), both to CN. Also a few large grain contracts, to CN as well. Basically, this will leave CP with roughly two trains per day between Toronto and Montreal... from today's four. They do get regular crude and ethanol train though. At present, they're down to three per day each way from Winnipeg to Toronto. Not good for CP.

[Lenny53]

CP just lost a few big contracts... all of GM business out of Oshawa, Ontario, and the Canadian Tire contract (domestic containers), both to CN. Also a few large grain contracts, to CN as well. Basically, this will leave CP with roughly two trains per day between Toronto and Montreal... from today's four. They do get regular crude and ethanol train though. At present, they're down to three per day each way from Winnipeg to Toronto. Not good for CP.

Four?  They were running five. CT ships a lot of their containers on Xpressway, does not sound good.

[lock4244]

Four?  They were running five. CT ships a lot of their containers on Xpressway, does not sound good.

Currently on the Belleville Sub... 112/113, 118/119, 132/133, 142/143. The 550/551 crude and 650/651 ethanol run as required.

[Lenny53]

Currently on the Belleville Sub... 112/113, 118/119, 132/133, 142/143. The 550/551 crude and 650/651 ethanol run as required.

So no more 240/241?   

[lock4244]

So no more 240/241?   

Nope, they're gone. Initially 240/241 traffic was moved on 118/119 and 550/551, however now it's just on 118/119.

[Lenny53]

Nope, they're gone. Initially 240/241 traffic was moved on 118/119 and 550/551, however now it's just on 118/119.

119 would depart anytime after 10am but has changed to after noon the last couple months.

[lock4244]

119 would depart anytime after 10am but has changed to after noon the last couple months.

And with the CDN Tire cans gone, I'm wondering if that will kill off one of the western Canada pairs, 112/113 or 118/119 east of Toronto. Also, rumour attached to this is that CP is looking to exit St Luc. Agincourt, as I'm sure you know, is an anemic shadow of it's former self. Traffic wise on our end of the system, it's sad to see how far CP has fallen from the levels seen in the 1980's... even the 1990's when we all thought the SL&H era was the darkest of times in CP's east.

[Lenny53]

And with the CDN Tire cans gone, I'm wondering if that will kill off one of the western Canada pairs, 112/113 or 118/119 east of Toronto. Also, rumour attached to this is that CP is looking to exit St Luc. Agincourt, as I'm sure you know, is an anemic shadow of it's former self. Traffic wise on our end of the system, it's sad to see how far CP has fallen from the levels seen in the 1980's... even the 1990's when we all thought the SL&H era was the darkest of times in CP's east.

I heard they want to unload everything east of Smith Falls which doesn't make a whole lot of sense.  Wonder if QG's parent would be willing to step in as they seem to be making a go of it on the north shore.

[Missaberoad]

This has been the case off and on for years. At one time it was everything east of Thunder Bay they wanted to unload.
It really has become a Vancouver to Chicago/Kansas City via Moose Jaw railway.

Even here in Winnipeg sleepy rail is a shadow of its former self. The loss of the CT contracts is going to make it even worse. That long western backhaul was a big money maker for CP.

It will be interesting to see what the future holds. In many ways CN is still paying the price for the Hunter years. Hopefully CP is strong enough to survive this.

[Lenny53]

It will be interesting to see what the future holds. In many ways CN is still paying the price for the Hunter years. Hopefully CP is strong enough to survive this.

While at CN Hunter drove a lot of the Port of Montreal traffic over to CP.  Now at CP, he is driving customers over to CN.  CN was smart enough to go with Mongeau and not Creel.