Western Railroad Discussion > offer to buy tennessee pass

UP has an offer from a shortline to buy tennessee pass

http://trn.trains.com/news/news-wire/2019/11/19-up-considering-sale-of-tennessee-pass-route

For those who don't subscribe to Trains (like me) the link is behind a paywall

a delaware based company called colorado pacific

wasn't that Court Hammonds?   old line name, which operted the towner line before A&K got it?

UP may want to throw in more colo lines and vacate other routes here?

it would be interesting if the company building the line in Utah wanted it, as much of traffic maybe destined for the gulf coast region?

See reference to Court Hammond in:
https://www.trainorders.com/discussion/read.php?1,2065981

 

DWDebs/2472 Wrote:
-------------------------------------------------------
> See reference to Court Hammond in:
> https://www.trainorders.com/discussion/read.php?1,
> 2065981
>
>  

There's also the shenanigans with the Yreka Western RR, the steam engine and the stored LP cars on the closed McCloud RR that are not mentioned in that post. Seems the motive would be to store cars for fee or sell scrap metal.



Edited 1 time(s). Last edit at 11/19/19 10:08 by TCnR.

I’ve been hearing rumors for a while here both for Tennessee Pass and the Moffat route.

I’d expect the TP line to be sold for scrap and not operated. Sad, but most likely. I don’t believe it will be this operator though unless they pay cash up front or have sufficient financing.

The Moffat line is most likely going to be sold to BNSF or Washington Corp., possibly both as a JV to create a preferable route for BNSF without the operational overhead.

Basically, BNSF wants to use the line without maintaining it and is happy to help fund the acquisition by MRL’s parent in order to ensure they have ready access. UP doesn’t want to maintain it and Amtrak doesn’t want to reroute across Wyoming again.

Posted from iPhone

I will buy it for a dollar

Isn't this the route to abandonment?

Wonder if the person who submitted this proposal is related to Ed Ellis?

dan Wrote:
-------------------------------------------------------
> a delaware based company called colorado pacific
>


They are the people who bought the Towner line from A&K and contracted with Watco (Kansas & Oklahoma) to operate it.  

https://www.federalregister.gov/documents/2016/04/15/2016-08785/kcvn-llc-and-colorado-pacific-railroad-llc-feeder-line-application-line-of-v-and-s-railway-llc

 

I am gonna have to let my lunch digest before commenting on this.!

Colorado Pacific are the ones who have restored the former MoPac Pueblo to Towner Line. Their experience in rebuilding that line would do them good if they decide to buy Tennesse Pass.

The Towner line is planned to be leased out to Watco's Kansas & Oklahoma Railroad. The Trains Magazine article says that ColPac wants trackage rights to Pueblo as apart of any deal. I think it's safe to assume that if ColPac buys and restores Tennesee Pass, Watco would be assigned as the operator.

Good to know. Hopefully it won’t be sold for scrap, but I think TP is in rough condition and the cost to rehabilitate vs. just running up the joint line and heading west via Moffat isn’t in favor of buying it, but I could be wrong. If they can buy it and get it running profitably again I’d be glad.

As for BNSF, as I understand Buffett (or his lieutenants) told management to save money in some key areas so that they can invest in buying up capacity in other areas when it becomes available.

Basically he wants to use the short sightedness of PSR as it is now right before/entering a downturn to grab assets and capacity at low price, in order to have it when we exit the downturn.

Shortline614 Wrote:
-------------------------------------------------------
> Colorado Pacific are the ones who have restored
> the former MoPac Pueblo to Towner Line. Their
> experience in rebuilding that line would do them
> good if they decide to buy Tennesse Pass.
>
> The Towner line is planned to be leased out to
> Watco's Kansas & Oklahoma Railroad. The Trains
> Magazine article says that ColPac wants trackage
> rights to Pueblo as apart of any deal. I think
> it's safe to assume that if ColPac buys and
> restores Tennesee Pass, Watco would be assigned as
> the operator.

Posted from iPhone

Talk i read recently says that the Towner line operation has 6 grain shippers ste up to use rail shipping. .

The only way I can see the TP line being viable ia...
1. towner line traffic going west
2. overhead traffic bypassing Denver (BNSF traffic, if there is any)
3. Rock and rail included in the purchase, along with the UP stone traffic
4. Income from tourist RR traffic
5. Online traffic?????...along w state subsidy.  If there is any to be had.  IDK

Its a tall order, imho   Maybe they are feeling encouraged by the Towner line coming back from the dead...

And maybe there is a hidden funding source who'd rather stay out of the limelight.

Out

Agreed. I’d be surprised if it went for anything beyond scrap sadly.

pdt Wrote:
-------------------------------------------------------
> Talk i read recently says that the Towner line
> operation has 6 grain shippers ste up to use rail
> shipping. .
>
> The only way I can see the TP line being viable
> ia...
> 1. towner line traffic going west
> 2. overhead traffic bypassing Denver (BNSF
> traffic, if there is any)
> 3. Rock and rail included in the purchase, along
> with the UP stone traffic
> 4. Income from tourist RR traffic
> 5. Online traffic?????...along w state subsidy. 
> If there is any to be had.  IDK
>
> Its a tall order, imho   Maybe they are feeling
> encouraged by the Towner line coming back from the
> dead...

Posted from iPhone

Maybe some overhead traffic from the K&O?    DO they have grain shipments that have to go east to interchange to go west?
Good time to go after UP carload traffic, as they could care less about it right now.

Court Hammond's company was the Colorado, Kansas and Pacific Railroad. This new company has no relation to Court Hammond.



Edited 1 time(s). Last edit at 11/19/19 15:04 by rrpreservation.

Interesting that this news comes out 10 days after I posted my recent pictures of the Tennessee Pass line.
https://www.trainorders.com/discussion/read.php?1,4899283

I know it's unrelated, just fun timing. Another thing that's floating out there is KCS has re-purchased stock and raised a bunch of money, the rumor is it's to be used for expansion, and they're interested in the KP, the Moffat, and the old WP to Stockton. Yes, this is "heard it from a friend who, heard it from a friend...," but with the events that are unfolding, anything seems possible now.
~wko

Can you imagine the number of cross ties that will have to be replaced.  Its been 20 years since last used and recent picture show whitening of a high percentage of ties.  Then there are the rock slides and damage to the track. Tie expense would surely be very high.  Surely if bought, the line would be no more than 20 mph meaning no expense of putting in a signal system again..  I think I have heard non PTC track is limited to slow speed isn't it?  Obviously slow speed east bound would be no problem when running up 3 %.  No on line business.  But, with the growth of housing in the immediate area maybe a siding for lumber and cement   (team track)  could be some traffic.

I would love to see TP open again but, -------------.