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Eastern Railroad Discussion > Will it be CP D&H subsidiary that formally buys US lines of CMQ?


Date: 11/26/19 03:01
Will it be CP D&H subsidiary that formally buys US lines of CMQ?
Author: JPB

Alternatively it could be the Soo Line or DM&E subsidiaries. Or maybe an altogether new subsidiary like International Railway of Maine? We'll find out soon enough!



Edited 1 time(s). Last edit at 11/26/19 03:54 by JPB.



Date: 11/26/19 06:00
Re: Will it be CP D&H subsidiary that formally buys US lines of C
Author: pennsy3750

They could also keep the CM&Q as a paper railroad, similar to how the B&M and Maine Central still technically exist under the Pan Am umbrella.



Date: 11/26/19 08:02
Re: Will it be CP D&H subsidiary that formally buys US lines of C
Author: green

since this isn't a merger but a purchase and the cm&q is already union with lower labor costs than they'd have after the purchase, id' guess they'd just keep keep everything as is. if the cm&q is operated with 1 man crews already can't see them adding another crew member. 



Date: 11/26/19 08:44
Re: Will it be CP D&H subsidiary that formally buys US lines of C
Author: ShortlinesUSA

Haha, you gotta be kidding me! That'll fly like lead balloon at a unionized Class 1.

That's what is called an alter ego. Buy (or start) a subsidiary working for substantially lower wages/gutted work rules, and before you know it, other lines "which can't be operated profitably" are passed over to the alter ego.

You need look no further (and not too far south) to the Guilford and Springfield Terminal for a history lesson on how this works and the results.

Posted from Android



Edited 1 time(s). Last edit at 11/26/19 08:55 by ShortlinesUSA.



Date: 11/26/19 11:42
Re: Will it be CP D&H subsidiary that formally buys US lines of C
Author: JPB

green Wrote:
-------------------------------------------------------
> since this isn't a merger but a purchase and the
> cm&q is already union with lower labor costs than
> they'd have after the purchase, id' guess they'd
> just keep keep everything as is. if the cm&q is
> operated with 1 man crews already can't see them
> adding another crew member. 

That’s a provocative notion. To that point, here’s a quote from a CP spokesman wrt how CP will operate/manage the CMQ acquisition:

“ A spokesman for Canadian Pacific said it planned to continue running the Maine and Quebec railroad as a “distinct and separate entity.”

“That being said, CP will be the new owner, and in this position, will instill its values of safety and efficiency on CMQ, similar to how CP manages its other subsidiaries comprising CP’s rail network,” said the spokesman, Jeremy Berry.”

http://wgme.com/news/local/what-the-sale-of-almost-400-miles-of-train-track-will-mean-for-maine

Posted from iPhone



Date: 11/26/19 12:46
Re: Will it be CP D&H subsidiary that formally buys US lines of C
Author: Lackawanna484

How did the CMQ handle train dispatching? And, from which US location?



Date: 11/26/19 17:43
Re: Will it be CP D&H subsidiary that formally buys US lines of C
Author: cn6218

Lackawanna484 Wrote:
-------------------------------------------------------
> How did the CMQ handle train dispatching? And,
> from which US location?

Dispatching is contracted out to Railterm (in Vermont, I believe).  The Canadian side of CMQ and NBSR are dispatched by a Canadian division of Railterm (in Quebec?).

It will be pretty hard for the unions to stop them from operating it as an internal shortline.  That's exactly what CN did after they bought back the Quebec Rail operations after 10 years.  Although they sacked the dispatchers and just added the work to the Montreal RTCs.  IIRC, Guilford tried to operate their whole network under the Springfield Terminal banner and work rules, and was eventually rebuffed in the courts, although it took a long time.

And there are no remote control, single crewman operations on the CMQ at present.  After the disaster at Megantic, it will be a long time before that idea flies in that neck of the woods.  

GTD



Date: 11/26/19 17:54
Re: Will it be CP D&H subsidiary that formally buys US lines of C
Author: Lackawanna484

Thanks for the info on RailTerm.  I thought the line had to be dispatched from the US.



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