Rail News Home CSX Transportation 8/9/2021 Rail News: CSX Transportation
CSX on Friday announced it reached an agreement with the Northern New England Passenger Rail Authority (NNEPRA) to support the Class I’s planned acquisition of Pan Am Railways Inc.One of New England’s largest passenger-rail trade authorities, the NNEPRA agreed to file a letter with the Surface Transportation Board (STB) requesting approval of CSX’s revised application for the transaction. On July 30, the STB accepted the railroad’s revised application.NNEPRA’s support for the transaction is significant given its role as the primary state sponsor of Amtrak’s Downeaster service between Brunswick, Maine, and Boston, CSX officials said in a press release.“This agreement demonstrates our commitment to work collaboratively with all stakeholders and to maintain or improve passenger service in the region,” said CSX President and Chief Executive Officer James Foote.Maine Gov. Janet Mills recently filed a letter of support with the STB stating the transaction has the potential to bring substantial benefits to the state, which relies heavily on rail to deliver goods.If the transaction is approved — possibly sometime in 2022 — CSX plans to upgrade track and locomotives to improve service, and extend positive train control on Amtrak's Downeaster network.Based in North Billerica, Massachusetts, Pan Am owns and operates a nearly 1,200-mile network in New England and retains a partial interest in the more-than-600-mile Pan Am Southern rail system.
Railroad News
Aug
10
Aug
10
BNSF Railway Co.’s financial performance was promising in the second quarter, with total revenue up 26% to $5.8 billion, operating income up 28% to $2.2 billion and net income up 34% to $1.5 billion on a year-over-year basis.
In addition, total traffic jumped 24% to 2.6 million units and the railroad’s operating ratio improved 0.7 points to 60.4. The higher volume was partially offset by a 2% drop in average revenue per car/unit in 2021’s first half resulting from business mix changes, BNSF officials said in a Q2 performance summary posted on the Class Is’ website.
Aug
10
Canadian Pacific has upped the ante in its competing attempt to acquire Kansas City Southern by issuing a new offer it’s characterizing as superior, achievable, pro-competitive and strategic.
In a letter sent to KCS’ board, CP President and Chief Executive Officer Keith Creel describes the Class I’s new offer, which is a stock and cash transaction representing an enterprise value of about $31 billion. The offer values KCS at $300 per share, representing a 34% premium based on the CP stock closing price on Aug. 9 and KCS unaffected stock closing price on March 19, 2021.
Aug
09
Rail News Home Kansas City Southern 8/9/2021 Rail News: Kansas City Southern
Kansas City Southern on Saturday announced leading independent proxy advisory firm Institutional Shareholder Services Inc. (ISS) has recommended that the Class I’s shareholders vote in favor of the proposed CN merger at a special stockholders meeting to be held on Aug. 19.ISS determined the premium, valuation and strategic rationale for the transaction are compelling. While Canadian Pacific — which also aims to acquire KCS — is soliciting votes against the CN-KCS merger, it has not provided KCS shareholders with any actionable alternative or one that bridges the divide between its initial offer and CN’s offer, ISS officials claim.“In voting to approve the transaction, shareholders would lock in the break fee. They would also advance the deal one step closer to completion,” ISS officials said in a press release.KCS leaders are encouraged that ISS supports its board’s unanimous recommendation that shareholders vote in favor of the combination.“In its report, ISS validates our belief that CN is the ideal partner for KCS to power the resurgence of North America’s industrial and agricultural corridors and enhance competition, and that this transaction is in the best interest of KCS and all of our stakeholders,” said KCS President and Chief Executive Officer Patrick Ottensmeyer. “We strongly urge [our] shareholders to follow the ISS’ recommendations and vote for the transaction.” On May 21, KCS and CN entered into a definitive merger agreement under which KCS shareholders would receive $200 in cash and 1.129 shares of CN common stock for each KCS common share. After the transaction closes, KCS shareholders would own about 12.65% of the combined company.
Kansas City Southern on Saturday announced leading independent proxy advisory firm Institutional Shareholder Services Inc. (ISS) has recommended that the Class I’s shareholders vote in favor of the proposed CN merger at a special stockholders meeting to be held on Aug. 19.ISS determined the premium, valuation and strategic rationale for the transaction are compelling. While Canadian Pacific — which also aims to acquire KCS — is soliciting votes against the CN-KCS merger, it has not provided KCS shareholders with any actionable alternative or one that bridges the divide between its initial offer and CN’s offer, ISS officials claim.“In voting to approve the transaction, shareholders would lock in the break fee. They would also advance the deal one step closer to completion,” ISS officials said in a press release.KCS leaders are encouraged that ISS supports its board’s unanimous recommendation that shareholders vote in favor of the combination.“In its report, ISS validates our belief that CN is the ideal partner for KCS to power the resurgence of North America’s industrial and agricultural corridors and enhance competition, and that this transaction is in the best interest of KCS and all of our stakeholders,” said KCS President and Chief Executive Officer Patrick Ottensmeyer. “We strongly urge [our] shareholders to follow the ISS’ recommendations and vote for the transaction.” On May 21, KCS and CN entered into a definitive merger agreement under which KCS shareholders would receive $200 in cash and 1.129 shares of CN common stock for each KCS common share. After the transaction closes, KCS shareholders would own about 12.65% of the combined company.
Aug
06
Union Pacific Railroad Assistant Vice President-External Relations Wes Lujan recently posted a column on the freight-rail industry’s relationship with Amtrak.
The column’s timing is related to Amtrak’s 15-year, $75 billion plan to expand intercity passenger-rail service across the country. The plan will depend on Congress passing federal funding to help pay for it, as well as negotiations with the nation’s freight railroads on whose tracks Amtrak trains would travel.