Eastern Railroad Discussion > Here's how GWI ended up with Providence & Worcester

It wasn't as simple as it may have seemed when the deal was announced last month.

http://www.telegram.com/news/20160911/turns-out-pampw-created-bidding-war-for-its-sale

That's an interesting story, thanks for sharing it.

As with any small business, there are probably some big costs that can be removed with central ownership and purchasing etc.

=============

There are big advantages to closely held firms, even those with publicly traded stock, to trade their often limited stock base for stock in a widely traded firm. Happens all the time with small companies when the founders etc want to diversify their assets away from reliance on a single company.

THIS IS SPECULATION 

Mr Eder is 85 years old, so exchanging his stock for G&W shares may help his estate planning.  If his estate has to sell shares to pay taxes, that could be a burden for the firm, and introduce uncertainty.  Mr Rogers is in his 50s, so the liquidity of G&W shares may be desirable for him, too.  Even with insurance, having a clearly expressed plan for the company's and employee population's shares is important. 

> What was unusual was that the other company, called "Party A" in the statement, expressed interest in acquiring equity in P&W "to further develop strategic opportunities and enhance regional connectivity."

Sounds like Party A probably connects with P&W, either directly or with trackage rights.  What non-G&W railroads do that?  NS, CSX, PanAm, and Massachusetts Central, anyone else?



Edited 1 time(s). Last edit at 09/20/16 08:20 by darkcloud.

Does Housatonic Rail connect with P&W?

Lackawanna484 Wrote:
-------------------------------------------------------
> Does Housatonic Rail connect with P&W?

They touch each other in Danbury but I'm not aware of them doing any interchange. For a while P&W used the HRRC's tracks between Derby Jct and Danbury to reach the Tilcon depot in Danbury, but the track east of Stevensons has been out of service for a while now.



Edited 1 time(s). Last edit at 09/21/16 15:35 by toledopatch.

Perhaps we can add Anacostia Rail Holding's NY & Atlantic.

darkcloud Wrote:
-------------------------------------------------------
> Perhaps we can add Anacostia Rail Holding's NY &
> Atlantic.

"approached by a larger railroad" rules that out, as well as the HRRC, and probably Mass Central.



Edited 1 time(s). Last edit at 09/20/16 09:07 by sums007.

Would be interesting to know who all the players were. I can't imagine Pan Am wanting to expand, but you never know. Maybe NS wanted to do it through Pan Am Southern.

Lackawanna484 Wrote:
-------------------------------------------------------
> Does Housatonic Rail connect with P&W?

According to the P&W online system map, they do connect with the Housatonic at Danbury.  There is no indication whether this is an active connections, or just an unused or rarely used physical connection.
 

(Quasi-Speculation)
It has been tossed about in the  transportation group my company belongs to that it is no secret that CSX would love to get out of the B&A and end at Selkirk -  so would it not be good for G&W eventually gain access to Selkirk by owning the B&A and enough traffic-generating lines hanging off it (P&W, COS, NECR.....and eventually G&U?) to make money off it? Selkirk access might allow them to covet other roads just off the Mohawk Division, access to short lines off the River Line to NJ? ...reach the Port of Albany, or maybe even take over the old NYC on the east bank of the Hudson for whatever freight they can harvest from it now in NY CITY? 

NS might also certainly have had an interest in P&W for access to Davisville, the CT coast, NYCity and the east side of the Hudson below Albany?

Mr. Eder certainly looks like a wizard now which was not the case when he took over the stock of a railroad wholly dependent on a bankrupt  Penn Central for life back in the early 70's...

Bob

navarch2 Wrote:
-------------------------------------------------------
> (Quasi-Speculation)
> It has been tossed about in the  transportation
> group my company belongs to that it is no secret
> that CSX would love to get out of the B&A and end
> at Selkirk 


Bogus rumor.

I've often wondered about the financial stats of the B&A line. It doesn't have a lot of online traffic or trains. It does pick up a lot of interchange.

Posted from Android

Lackawanna484 Wrote:
-------------------------------------------------------
> I've often wondered about the financial stats of
> the B&A line. It doesn't have a lot of online
> traffic or trains. It does pick up a lot of
> interchange.

Huh?  After consolidating trains it still has on average 16 through freights per day:  8 mixed freights, 2 autoracks, and 6 doublestack intermodals, many of those trains can run up to 2 miles long.  2 major intermodal terminals, compared to NS's 1 pair of singlestack intermodals CSX dominates the New England intermodal market.  Substantially more mixed freight traffic than NS.  They might end up shortlining the local work east of Worcester, but Selkirk-Worcester is a heavily used mainline.

Kudos to the P&W ownership for doing so.  Like a former co-worker of mine once said "you know you have something priced right when the customer gasps and mumbles under their breath - but pays it anyways"

There's that much business every day on the B&A?

Posted from Android