Eastern Railroad Discussion > Ancora Wants to Take NS (Down to the Studs)

The investment group seeking to gain control of Norfolk Southern has grand plans that involve gutting the Atlanta-based carrier's operations.
Speaking on an investment webcast this week, Jamie Boychuk, who Ancora wants to install as chief operating officer, said he plans to “strip this thing down to the studs.”

Boychuk previously served as COO at CSX before being dismissed last August.
During the webcast, Boychuk said if Ancora gains control of the NS board of directors it will take steps that it said will drive down the operating ratio to 62 percent within a year by storing 450 locomotives, idling 35,000 freight cars and reducing switching through a network redesign.

Boychck downplayed recent operational changes recently announced by NS, including the appointment of a new COO as minimal changes that at best will reduce the operating ratio by a point or two.
Current NS management has said it will idle 75 locomotives and make moves to speed up train travel time, and reduce dwell times in yards.
Ancora has said its ultimate goal is to achieve a 57 percent operating ratio.

Boychuk said the new management team Ancora is seeking to install at NS will reduce costs but not cut jobs. Instead, he said, the workforce would be reduced through attribution. Ancora’s plan calls for reducing the NS workforce by 1,750 jobs.
Speaking during the webcast, James Barber Jr., who Ancora wants to make the next NS CEO said precision scheduled railroading would be the foundation for the NS operating system once Ancora's chosen executives take control.

Ancora has argued that the PSR operating model NS began implanting in 2019 did not go far enough.
Barber suggested during his remarks that under his leadership NS would furlough workers if traffic declined, a strategy that Class 1 railroads have long employed during economic downturns.

Current NS CEO Alan Shaw has pledged not to furlough workers during economic downturns so that the carrier would have an adequate workforce when traffic picks up.
Boychuk worked at CSX when the late E. Hunter Harrison became its CEO and quickly implemented a PSR operating model that resulted in widespread service problems.

 Boychuk said Harrison moved too quickly and failed to communicate with shippers, workers and regulators. He said the operational changes he is planning to implement at NS will be phased in at a slower pace and with greater communication with those affected.    https://pixel.wp.com/t.gif?has_featured_image=0&subscriber_id=124851144&_ui=67e5ed4881625f405f665da647fb8e0b&_ut=anon&email_domain=neo.rr.com&blog_id=6757912&post_id=77711&user_email=ptait%40neo.rr.com&date_sent=2024-04-18&email_id=71d5317b08bec76a67839e8e0d795b90&email_name=new-post&template=new-post&_en=wpcom_email_open&browser_type=php-agent&_aua=wpcom-tracks-client-v0.3&blog_tz=-4&blog_lang=en&_ts=1713429613777http://pixel.wp.com/b.gif?blog=6757912&post=77711&subd=akronrrclub&ref=&email=1&email_o=wpcom&host=akronrrclub.wordpress.com



Edited 2 time(s). Last edit at 04/18/24 14:16 by pt199.

May 9 is coming up quickly. 

Any intelligence as to how Ancora is doing in collecting proxies?

For maybe the second time, I voted my few shares. And it wasn't for Ancora.

RetiredHogger Wrote:
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> For maybe the second time, I voted my few shares.
> And it wasn't for Ancora.

Yeah. Though I question some of the current NS management policies, I don't see how Ancora would make things any better.

Sounds like PSR on steroids, EHH rolls over and laughs...

JG

Here's an Ohio article spinning Ancora as the good guys!  

Ancora calls NS derailment response “a failure” | News, Sports, Jobs - The Review (reviewonline.com)

75.1% of the stock is held by 1,421 institutional investors.   A mere 24 of those 1421 institutional investors hold over 51% of all NS's outstanding stock.  it's those 24 who will decide this, of which Ancora is one.
From what I've found, this is should be close to the latest breakdown of largest owners by number of shares owned

1) Vanguard
2) BlackRock
3) State Street
4) Dodge & Cox
5) Lazard Asset Management
6) T Rowe Price
7) Ancora. 

Review what those other 6 companies investment strategies are and that will give you an idea of how they'll vote.  My gut says Ancora's got this 60 to 40.  
 

scraphauler Wrote:
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> Review what those other 6 companies investment
> strategies are and that will give you an idea of
> how they'll vote.  My gut says Ancora's got this
> 60 to 40.  

Wow! Scraphauler, I appreciate your analysis. Could be a lot of turmoil coming.

And if Ancora wins, Wall Street and the hedge fund vultures will be all over the other Class 1's, and the OR war begins again.  Screw the customers, who needs them?.

such b/s from a investment firm

Scraphauler has solid numbers. In general, any company that is included in the S&P 500 index will have an overwhelming % of fund manager participation. Very small individual owner %

(Save the nasty comments. The fund managers get to vote the shares, which is what counts )

Posted from Android

Striving foran OR of 62 is a lame objective.  The real issues are improved safety, and FASTER throughput.  If the OR takes into account asset utilization, a 21 mph train is poor usage. (the # is from a newly announced IM "express" between greater LA and Chicago at 96 hrs).  Any of us who watch webcams can attest that trains are not frequent on many "mainlines".  Freight  needs to move faster  to be competitive.  
PSR IMHO while a smokescreen for insane job cuts, has been a failure.   Shipments are not arriving sooner..   

"drive down the operating ratio to 62 percent within a year by storing 450 locomotives, idling 35,000 freight cars and reducing switching through a network redesign."

How can an outside investment firm make such bold claims when they don't know the day to day operations?   DO they really have that much insider knowledge of NS?   Or just fluff words to get the investors one their side?

Any one who says they want to idle 450 locomotives on the NS system is admitting they are a idiot who has not looked at the current state of affairs. With trains holding for power, And locals struggling to get adequate power to move tonnage. 

"Store 450 locomotives, and idle 35,000 freight cars." For any customer that thinks service is bad now. just wait.

NSDTK Wrote:
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> Any one who says they want to idle 450 locomotives
> on the NS system is admitting they are a idiot who
> has not looked at the current state of affairs.
> With trains holding for power, And locals
> struggling to get adequate power to move
> tonnage. 

Under the current system locals are not supposed to have adequate power......you are lucky if you get something that runs. 

I worked in the operating departments of NYC, PC and CR .  I can tell you that Ancora spews nothing but total BS! Only the coke snorting hedge fund managers would gain from Ancoramanagers1

Amtrak and rail passenger advocates should be very worried (and engaged).

Dave

DavidP Wrote:
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> Amtrak and rail passenger advocates should be very
> worried (and engaged).
>
> Dave


A lot of people should be "very worried".....

Posted from Android

As a railfan who grew up on the third busiest mainline in Ohio I am very, very, very worried.

So now I'm in the dark. Had an NS contact but due to unforseen circumstances he's no longer with NS.

Gonna be I threshing ro see how Ancora plays out. If they win, it's gonna be all hell breaking loose.

Kiss everything good Alan Shaw did goodbye.

Michael Fair
Royal Oak, MI



Edited 1 time(s). Last edit at 04/20/24 08:46 by bath_wildcat.

What kind of bizzaro world are these Wall Street parasites living in?

The company is on its ass because of PSR and the logical response is to back off of PSR and focus on conducting business in a logical way.

Wall Streets answer is double down on PSR and kill the company, while f&@king the customers and the national economy to the wall.

And the Government (STB, FRA, LRB etc) just sits on their hand’s and shrugs.

The game is rigged.

Regards

Posted from iPhone