Posts Tagged ‘Canadian Pacific’

CP Launches Detroit-Vancouver Train

August 15, 2017

Canadian Pacific said on Monday that it is launching a new service between Detroit and  Vancouver, British Columbia.

The train is expected to cut the transit time between the two points by as much as 48 hours and operate daily.

In a news release, CP said that it will use a new transload facility in Vancouver and a live-lift operation at Portal, North Dakota.

The latter began earlier this year. CP lifts single containers off trains for inspection by customs authorities rather that having entire intermodal rail cars — which can carry up to 15 containers — delayed.

CP said that process eliminates delays to containers not flagged for inspection, thus helping make it easier and faster for customers to do cross-border business.

The Detroit-Vancouver train will operate via Chicago.

Seeing Red

August 10, 2017

Train Q165 roars past the Lake Shore Railway Museum in North East, Pennsylvania.

On a couple of back-to-back outings I had the good luck of seeing Canadian Pacific motive power on four trains.

Two of them were Q165 and Q166, which are Chicago-Buffalo, New York, run through trains on CSX that have been operating for a few years now.

I used to somewhat regularly see one of those trains at Berea, but that hasn’t been the case for a while.

I’ve only seen both of them in the same day twice and each time I was in North East, Pennsylvania.

I also found CP motive power leading a pair of Norfolk Southern trains, the 216 and the 67X. One of those was moving and the other was tied down.

I didn’t mind seeing so much red and wouldn’t mind seeing it again now that CP has resumed putting its beaver tail logo on the flanks of some locomotives.

The light was less than ideal to get Q166, which was one of five consecutive eastbounds allowed to move as CSX was single-tracking the Erie West Subdivision between North East, Pennsylvania, and a point in New York York State.

A pair of CPs lead NS 216 through the vineyard country near Bort Road in North East, Pennsylvania.

The first of two views of NS train 67X tied down near Lewis Road in Olmsted Falls, Ohio.

 

Ya Think It Won’t Start Anyway?

August 4, 2017

The remains of a StL&H SD made a stop at work in its journey from LTEX to Pottstown, Pa. I thought the “Do not start” instruction on the non complying locomotive tag was a bit of a hoot.

Photographs by Roger Durfee

 

CSX Shareholders Favor Giving Harrison More $$$

June 6, 2017

As expected, most CSX shareholders have voted to give CEO E. Hunter Harrison the money that he wants.

E. Hunter Harrison

In an advisory vote, 93 percent of the shareholders favored giving Harrison and hedge fund Mantle Ridge $84 million to reimburse them for salary and benefits that Harrison forfeited by leaving early as the CEO of Canadian Pacific last January.

The vote was made public on Monday at the CSX annual meeting in Richmond, Virginia.

Harrison had threatened to resign if shareholders rejected the reimbursement request.

Many analysts had expected the shareholders to agree to giving Harrison the money because CSX stock has risen by 40 percent in value since it became known that Harrison was seeking to become the railroad’s head.

Harrison took over the CEO post last March. Paying Harrison and Mantle Ridge will cost about 12 cents per share.

CSX also said that 13 candidates for its board of directors have been elected, with each member receiving the backing of at least 96 percent of shareholders.

They include Harrison, Mantle Ridge founder Paul Hilal, Donna M. Alvarado, Sen. John B. Breaux, Pamela L. Carter, Steven T. Halverson, Edward J. Kelly III, John D. McPherson, David M. Moffett, Dennis H. Reilley, Linda H. Riefler, J. Steven Whisler, and John J. Zillmer.

CSX, CP May Launch Run-Through Trains

May 29, 2017

CSX and Canadian Pacific are reportedly discussing ways to eliminate traffic congestion in Chicago, including creating run-through trains.

 “We’ve had some discussions with CSX operationally as well as commercially,” CP CEO Keith Creel said last week at an investor conference.
Noting that the talks are in the early stages, Creel said that the goal is to reduce transit time and improve service reliability.

CP currently relies on Norfolk Southern to move CP trains between Chicago and Detroit because CP does not have its own route from the east.

Stack trains cannot use the Windsor Tunnel beneath the Detroit River and CP has used CSX in recent years to move double stacked container between Chicago and Buffalo.

This puts CP at  competitive disadvantage against its chief rival Canadian National, which reaches Chicago over the former Grand Trunk Western and when can get through Chicago on the Elgin, Joliet & Eastern, which CN acquired in 2009.

CSX and CP interchange about 400 cars per day in Chicago, making CSX CP’s largest interchange partner railroad there.

Creel told the investor conference that 100 of those cars could be sent deep into CSX territory as a run-through train to avoid handling in Chicago. CSX could build trains destined for points on CP.

Harrison Has Medical Condition That Often Has Him Working From Home, Not CSX Headquarters

May 19, 2017

The Wall Street Journal reported this week that CSX CEO E. Hunter Harrison has a medical condition that often forces him to work at home.

E. Hunter Harrison

The newspaper gave few specific details about the condition and the 72-year-old executive said that he should not be judged by his medical record.

“I’m having a ball and I’m running on so much adrenaline that no one can stop me,” Harrison told the Journal. “Don’t judge me by my medical record, judge me by my performance.”

Harrison acknowledged that he carries a portable oxygen system, but his doctors cleared him for his position.

“There are times when I get a little shortness of breath so I take oxygen and it helps,”
Harrison said.” Sometimes I get a cough and the oxygen makes it go away.”

CSX Chief Financial Officer Frank Lonegro told an investor conference that Harrison is fully engaged in his job.

“We’re really running to play catch up with him,” Lonegro says. “He’s a 24-hour-a-day, seven-day-a-week kind of guy.”

Trains reported that CSX was well aware of Harrison’s medical condition when it hired him.

However, that was a point of contention at one point when CSX demanded that independent physicians review Harrison’s medical records, a request that Harrison refused.

CSX said it would not comment on Harrison’s health.

The Journal said that during his last two years at Canadian Pacific, Harrison frequently worked from home rather than in his CP office in Calgary.

Mantle Ridge Pushes CSX Stockholders to Vote ‘Yes’ On Additional Harrison Compensation

April 26, 2017

The campaigning has begun to win the votes of CSX shareholders as to whether new CEO E. Hunter Harrison should be reimbursed for the money he gave up when he retired early from Canadian Pacific.

Not surprisingly, the hedge fund Mantle Ridge is supporting giving Harrison the money. Mantle Ridge lured Harrison away from CP by promising to pay him what he would give up by leaving early. Now Mantle Ridge wants to be reimbursed for what it paid Harrison.

Mantle Ridge has launched a website, www.csxadvisoryvote2017.com to make its case.

“We believe that Mr. Harrison is the most effective and successful railroad leader of our times, having led the dramatic turnaround of three major railroads over the last 25 years,” Mantle Ridge founder and CEO Paul Hilal wrote in a letter to shareholders. “In those undertakings, he drove operating ratios to industry-leading levels while delivering total shareholder returns of 450 percent, 353 percent, and 319 percent, respectively.”

CSX stockholders will vote at the annual meeting on June 5 in a non-binding referendum on the reimbursement. Harrison has said he will resign if he doesn’t get the additional compensation.

The referendum seeks approval for CSX to pay Mantle Ridge $55 million and Harrison $29 million, which would pay his tax bill.

Hilal said the cost of the reimbursement amounts to less than 12 cents per share.

Papers filed with regulatory authorities last week indicate that Harrison gave up $89 million in salary and benefits to win release from his CP contract.

Many analysts expect the referendum to win approval because of the value that hiring Harrison has added to CSX stock.

The shares jumped in value by $12.91, an increase of 35 percent, after CP said it would allow Harrison to retire early.

The value of CSX stock rose against last week after the company announced its first quarter 2017 financial performance.

The CSX board of directors has not taken a position on the Harrison compensation referendum, but before hiring him the board had expressed concern about the size of the compensation package that he wanted.

The board did approve a statement to stockholders outlining the pros and cons of voting in favor of the compensation.

After acknowledging Harrison’s track record at Illinois Central, Canadian National and CP, the advisory noted that other side of the argument is that there is a risk that Harrison won’t be able to serve the full four years of his contract due to the potential for death, disability or other reasons.

It also said that Harrison may not be able to achieve results similar to those at IC, CN, and CP.

The board said it would take the referendum into account and “ . . . act promptly in the exercise of its fiduciary duties with respect to whether to commit to the reimbursement after the shareholders have voted.”

Harrison’s Compensation at CSX Outlined

March 9, 2017

Hunter Harrison and CSX agreed to a base salary of $2.2 million, the railroad said this week in a regulatory filing.

The compensation package also includes an annual target bonus opportunity of up to $2.8 million, with that amount as a guaranteed bonus this year.

Harrison will receive options on 9 million shares of CSX stock, which is valued at $448 million at its current price of $49.79 per share.

Half of those options will hinge on his continued employment and the other half are tied to his meeting a series of performance targets.

The agreement to hire Harrison as its CEO also came with a number of changes in the CSX board of directors.

Clarence Gooden is no longer vice chairman and board member Timothy O’Toole has resigned immediately.

CSX’ has amended its corporate bylaws to separate the roles of CEO and chairman of the board as well as to change the mandatory retirement age of 75. Harrison is 72.

Although it remains to be seen how Harrison’s management philosophy will play out at CSX, analysts expect that he will further thin the number of managers and employees at the company, close yards and shops, and sell off some rail routes.

These measures will be aimed at improving operations, reducing expenses and boosting profitability.

Some have noted that CSX is far different than were Canadian National and Canadian Pacific when he took over as CEO at those railroads.

The Canadian roads were linear systems whereas CSX has a more complex route network.

That will challenge Harrison to impose his precision scheduled railroading philosophy, which he developed as CEO of the Illinois Central Railroad in the 1990s.

One decision Harrison will need to make will be whether to continue the CSX of Tomorrow strategy, which emphasized intermodal and merchandise traffic while focusing on its major routes operating in a triangle operating from Chicago to New Jersey to Florida and then back to Chicago.

CSX, Harrison Reported Close to a Deal

March 4, 2017

News reports on Friday indicated the CSX and E. Hunter Harrison are closed to reaching a deal for the former Canadian Pacific head to become CEO of CSX.

CSX logo 1Bloomberg News reported that an announcement could be made as early as next week although the talks between CSX and hedge fund Mantle Ridge over the composition of the CSX board of directors could still collapse.

The reports indicated the two sides were close to reaching an agreement whereby Harrison would begin work immediately for CSX and receive a four-year contract.

CSX shareholders would vote on whether to reimburse Mantle Ridge the $84 million that it paid Harrison to walk away early from CP.

Back in January, several news reports indicated that Harrison agreed to forego tens of millions of dollars to get CP to grant him a limited waiver of a non-compete clause.

CSX and Mantle Ridge have refused to comment on the report.

Pair of Canadians in Berea

March 3, 2017

berea-1

berea-2

Motive power from Canadian National and Canadian Pacific is not rare in Berea, but it is not a given, either.

CP has a pair of run-through trains that use CSX between Chicago and Buffalo, New York, and it is not unusual to see them in Berea during daylight hours.

Given how the North American Class I railroads share motive power, seeing a CN unit is not an unusual thing on either CSX or Norfolk Southern.

But what was a out of the ordinary during a recent railfanning outing in Berea was seeing two westbound NS trains with Canadian motive power on the lead as shown above.

Photographs by Craig Sanders