posted
Some believe CSX will never fail. Like Conrail or other lines in railroad history. So my question for the forum is this:
Conrail, people believe was a success in general terms of a profit. Their history is based on mergering with other railroads.Yes, they had success. However, they also had one large goverment bail out to help them in the lean years. Would Conrail have lasted in the years without a bail out? CSXT then CSX was a railroad built on the backs of the Chessie System and Seabord Lines. Will CSX last through the years like Conrail or will they fail? Is another Merger in store? CSX&CN Matt
-------------------- I only have time. Posts: 7 | From: Liverpool, NY | Registered: Feb 2006
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posted
Conrail was created by the government. It was not a bailout. It was several bankrupt eastern railroads rolled into one.
During it's lifetime, Conrail proved that they borrowed money the old fashioned way, they paid it back. Conrail was profitable because they knew how to run a railroad.
Their mistake was in trying to take ove... er, ah, merge with CSX. NS couldn't permit that. Conrail was broken up, not because they didn't make money but because they did.
CSX? Don't hold your breath. They're trying to operate a large NE railroad like the sleepy south. Won't work unless they give local people more authority. That's why Conrail was a success. They gave local managers authority.
Conrail management knew that they were open for a buyout ny someone big (UP or BNSF) and they tried to avoid it.
quote:Originally posted by Roger Hensley: CSX? Don't hold your breath. They're trying to operate a large NE railroad like the sleepy south.
Funny how it was the railroads in the "sleepy south" that knew how to survive.
Posts: 2808 | From: Olive Branch MS | Registered: Nov 2002
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posted
I agree with you. Certain rail carriers survived in the south. But most of them are gone now from the market or mergers. CSX sallowed most of the smaller carries in the south. For example. The Family Line. Southern railroad, was taken over Norfork and Western. I do believe, the northern railroads have had trouble after the Conrail break up. But in whole, the east coast railroads are struggling against the large rail carriers out west.
Matt
-------------------- I only have time. Posts: 7 | From: Liverpool, NY | Registered: Feb 2006
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posted
No, the 'Sleepy South' didn't 'know how to survive'. They didn't have the concentration of heavy industry that the NE did. SO, when heavy industry failed or went into decline, the southern railwys were not nearly as affected. Indeed, in some cases the industry moved south which aided the railroads that survived there.
Check your mergers. The south didn't survive except by accident. The N&W lost out when they merged with the Southern leaving the Southern in control. Great people those. No toilets in the locomotives. They used plastic bags. Wonderful!
It wasn't until they hit the Nothern states after the Conrail takeover that they were forced to put toilets in their locos. Now, that is a progressive railroad that really knows how to survive!
posted
That is true about southern railroad companies. However, Conrail was an example of a rail company that few will ever copy. I wonder how many railroads are making a profit? Or at least breaking even? With six or seven major NA RR's how many will be around in ten years?
Matt
-------------------- I only have time. Posts: 7 | From: Liverpool, NY | Registered: Feb 2006
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posted
There is plenty of current news about successful railroads in newspapers and trade publications. While BNSF CN and NS are the promenent Class I's mentioned most frequently, most are doing quite well. Yes, they are all changing with the technolegy now available and with huge investments of their own capital. And I don't think they are being measured by their "toilets". Although they are all buying locomotives with creature comforts that are so far removed from those of twenty years ago this is just the evolution brought about because of financial success. When you are profitable you encourage the manufacturers to create. Just like the automobiles accessories available today as compared to 1990 which are brought about, in part, because of our growing economy
This simplified analysis relates to only a portion of the successful indicators of todays railroading. We are witnessing a dramatic period that cannot be easily compared with railroading 15-20 years ago.
Posts: 467 | From: Prescott, AZ USA | Registered: Mar 2002
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posted
That is true in regards to comparing railroads from 15 to 20 years ago. So in the eastern US, NS and CN are profitable, so this means CSX is a minor player in American railroading? I agree, the times are changing, but each railroad has the same technology if one wants to make large capital investments.
Matt
-------------------- I only have time. Posts: 7 | From: Liverpool, NY | Registered: Feb 2006
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