Author Topic: IMC brush-clearing  (Read 52517 times)

CIOR

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Re: IMC brush-clearing
« Reply #640 on: February 05, 2014, 11:58:22 AM »
All I will say is, things very much changed when RA was removed from the picture.  Things I think it was safe to say had soured so badly that other options at the time were the best option. 
Rebuilding the IMC was seen as a long term thing, so when you look at the cost of it, it wasn't as bad as you think. 
Had the GW deal not transpired as quickly as it did, you would likely be seeing the grain trains moving up and down the IMC right now.  There were too many things in place for it not to happen, but the ability for KG not to spend money made it easy up front.  Though I am sure the IMC will always remain a wildcard for KG and their ability to move the grain if needed.

indyspy

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Re: IMC brush-clearing
« Reply #641 on: February 05, 2014, 12:42:56 PM »
Ra, us rail, and Kokomo grain had a real pissing match going. G&W management put a quick end to it.

Ra was denying the use of the tp&w in logansport to the wsry because of it. Wsry could not get between. Their two halves.

That said us rail is in a death spiral. They were booted out of all their other operations.
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Trainman19

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Re: IMC brush-clearing
« Reply #642 on: February 05, 2014, 01:20:10 PM »
In a death spiral you say? I wonder who will take over their operations should they finally be put 6 feet under.


Back on topic: I have to agree with those who have said that G&W buying out RA ended the fued with KG/WSRY immediately. Now maybe the IMC could be put in as an alternate route should the worse case happen with the primary route KG uses for their grain. Seems like a good idea to me.
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santa fe warbonnet

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Re: IMC brush-clearing
« Reply #643 on: February 05, 2014, 08:46:23 PM »
Would not be surprised if G&W offers to buy WSRY outright. Plenty of local business, guarantee Ortman good rates on shipping his grain and Ortman can be rid of the headache of trying to run a railroad. US Rail is out of the picture and everyone will see orange units running around. (probably still see a few black NS run thru units)    Money talks and we all know what walks!!!

CIOR

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Re: IMC brush-clearing
« Reply #644 on: February 05, 2014, 08:54:37 PM »
KG saw what happens when you don't own a line under your own loadout.....

I could see letting them lease the operation in full, but I honestly can't see them making a mistake.  The Winamac line was a tough one. 
The only thing they care about is being able to move the grain, as long as it moves with competitive rates, then fine.  By owning the lines too, they can more control that fate of the middle man operator.

midland sub

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Re: IMC brush-clearing
« Reply #645 on: February 05, 2014, 09:02:56 PM »
The problem with the grain traffic is that it's going to be up to NS marketing to ultimately make the rates on the grain traffic. Sure US Rail and G&W get a taste of the move, but in the long run what leverage do they have with making rates....? Scraphauler can throw his two cents on this, but I would say a short line with no alternative interchange is basically a spoke in the wheel when it comes to grain traffic with the Class 1s.

midland sub

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Re: IMC brush-clearing
« Reply #646 on: February 05, 2014, 09:23:04 PM »
It was more of a mutual agreement between the city and US Rail to terminate the operating agreement early. City had two law suits pending against US Rail but neither seemed to be moving along. State of Ohio offered to take the line over to help get rid of US Rail, but dropped their interest last year. I don't think US Rail was making anything on the operation so just gave up to save the litigation. All of the six axles other than the one in Kokomo were scrapped that were part of their grand plans of a lease fleet. Two former Alaskan GP49s were still sitting in Columbus on CSX. Presume they will end up in Kokomo. There also were two former Helm GP40-2s on the Jackson lines.