Eastern Railroad Discussion > csx line sales coming after xmas

csx CEO mentioned today during the shareholder confrerence call after peak season they would start selling off redundant lines. 

Probably unintetional, but sort of implies that they need those lines THIS year, but not NEXT year.  I guess you draw your own conclusion as to why.

58.7 operating ratio reported for the most recent Q

Any ideas as to what lines are considered for divestiture?

Northern Wrote:
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> Any ideas as to what lines are considered for
> divestiture?

Don't know but I know not to believe Trains Magazine on this subject this time...

Didn't CSX provide a list of potential candidates a while back?

Victor A. Baird
http://www.erstwhilepublications.com

Like the whole railroad to UP?

Out

Lackawanna484 Wrote:
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> 58.7 operating ratio reported for the most recent

>Time to shortline the whole CSX .... that should help the OR and the bottom line.

Dick Samuels 

Lackawanna484 Wrote:
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> 58.7 operating ratio reported for the most recent
> Q

This is pure accounting hocus-pocus. They use their own metrics and the way they make their numbers is pure dishonesty. For example, is it honest to depart a train without the outbound crew on it? Hell, half the time the train doesn't even have a EOT device on the rear car.... Just have a yard crew pull the train past the mainline signal to get the "departure" and then worry about the EOT device.... Yard crew might wait an hour for the crew, but the computer says it is an on-time departure. There are a dozen more cheats that are regularly used to cheat the numbers, but as long as the stock analysts don't ask any questions of their numbers, it looks like the ring masters are genus. Nothing could be further from the truth.
Look at the rebuilding and reinvestment CN and CP are doing now... Why are the analysts not wondering how it will work different at CSX?

 Prices are usually slashed after Christmas..........

wabash2800 Wrote:
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> Didn't CSX provide a list of potential candidates
> a while back?
>
> Victor A. Baird
> http://www.erstwhilepublications.com

https://www.trainorders.com/discussion/read.php?2,4569159,page=1

wheel_slip Wrote:
-------------------------------------------------------
> Lackawanna484 Wrote:
> --------------------------------------------------
> -----
> > 58.7 operating ratio reported for the most
> recent
> > Q
>
> This is pure accounting hocus-pocus. They use
> their own metrics and the way they make their
> numbers is pure dishonesty. For example, is it
> honest to depart a train without the outbound crew
> on it? Hell, half the time the train doesn't even
> have a EOT device on the rear car.... Just have a
> yard crew pull the train past the mainline signal
> to get the "departure" and then worry about the
> EOT device.... Yard crew might wait an hour for
> the crew, but the computer says it is an on-time
> departure. There are a dozen more cheats that are
> regularly used to cheat the numbers, but as long
> as the stock analysts don't ask any questions of
> their numbers, it looks like the ring masters are
> genus. Nothing could be further from the truth.
> Look at the rebuilding and reinvestment CN and CP
> are doing now... Why are the analysts not
> wondering how it will work different at CSX?

The trick of pulling a train out of yard and parking it woud certainly start the clock with an "on time" departure.  But it would also show up in a lower velocity reading if the train took 28 hours to make a typical 15 hour trip.

That's why looking at several metrics is important to gaining a better understanding.

I believe all RRs use that same tactic to show on time departure. Additionally,it’s really not the time the customer is interested in,it’s the arrival time,and more importantly,especially with guaranteed intermodal service,the time the load is available for pick up that matters most. That’s the time that any penalties assessed    

Pencil whipping the numbers is not a new science....I have been railroading the better of 22 years and it happens all day every day. The STB could care less what lies we tell as long as we tell the same lies all the time....and of course...two sets of books...one for the gubmint and one for the investors...we on the inside know that neither is kosher. Neverthless we make money, lots of it. 

MC6853 Wrote:
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> Northern Wrote:
> --------------------------------------------------
> -----
> > Any ideas as to what lines are considered for
> > divestiture?
>
> Don't know but I know not to believe Trains
> Magazine on this subject this time...

Trains at one time could be trusted for articles they print, like one famous person says, Fake News sometimes!
 

EL-SD45-3632 Wrote:
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> MC6853 Wrote:
> --------------------------------------------------
> -----
> > Northern Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > Any ideas as to what lines are considered for
> > > divestiture?
> >
> > Don't know but I know not to believe Trains
> > Magazine on this subject this time...
>
> Trains at one time could be trusted for articles
> they print, like one famous person says, Fake News
> sometimes!
>  

Trains is in the tough position that they need access to railroad management to be able to do the kind of stories they want to do, but I think they then feel the need or have the need to carry water for that same management.  I've seen the same thing play out in auto racing.  If you are a journalist and you want the drivers and team owners to talk to you, then sometimes you end up complicit in spreading their version of the truth, whether you want to or not. Sometimes I think these people are so good at selling the "story" they want to present that the scribes just get sucked in by the BS. Hunter Harrison sure seemed to have Fred Frailey sucked in for a while.  It wasn't until EHH was on his deathbed that Frailey started to take a more critical look at Hurricane Harrison.

Musings of a 49 year old fan and stockholder:

At age 10, already reading Trains and other magazines: "Oh, the Erie through Ohio and Indiana...the Milwaukee Road...those are all one railroad too many. It will never happen here."
At age 12: "All of that Conrail pruning...the Rock Island went down...It will never happen here..."
At age 20: "The SP is in trouble, the ICG is selling or ripping up everything but the main stem. It will never happen here. Oh, wait--CSX is cutting, and cutting--but it's stuff like the C&O Of Indiana and the Macon, Dublin & Savannah. It won't happen here. This is an important line to the coast, and we have coal trains."
At age 30: "Well, all seems well. The SP and C&NW are safe in UP's arms. Too bad about Tennesee Pass...It will never happen here."
At age 35: "Things look great. The magazines report railroads are booming! It will never happen here."
At age 40: "Economy is in the tank, but it'll be back. I still live along what should be an important line for intermodal in the future. We are getting some new rail and signals. We have three pig trains in each direction. It will never happen here."
At age 45: "Surely this line has SOME strategic value for intermodal. Trains Magazine says there's a 'railroad renaissance'...It can't happen here."
At age 49: "They've rerouted all of our trains. What about the 'renaissance'? What about Savannah?? I can't believe it's happening HERE!"
--Yeah, I can believe it. Yeah, I'm talking once again about my favorite dead horse/lost cause, the CSX Georgia Subdivision. I really believe it'll be jettisoned soon to a shortline, along with CSX's other redheaded stepchildren.

Northern Wrote:
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> Any ideas as to what lines are considered for
> divestiture?

Been hearing a lot of how CSX wants to get out of Michigan. The biggest rumor is that Lake State Railway will get part of the Saginaw Subdivision from Flint to Plymouth and the entire Port Huron Subdivision from Port Huron to Marine City with trackage rights over Canadian National from Port Huron to Flint. Another is that the State of Michigan will take up the Grand Rapids-Detroit line and use it to kickstart the Grand Rapids-Detroit passenger train they've been advertising since forever. But these are just rumors.



Edited 1 time(s). Last edit at 10/18/18 18:14 by SD80MACfan.

> redheaded stepchildren.

Redheads rule. 

ctillnc Wrote:
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> > redheaded stepchildren.
>
> Redheads rule. 

Except THAT redhead. I picture a 1960's NYC caboose with the slogan modified to "Road To Nowhere" when I think of the Old Reliable hometown road.