CN to acquire EJ&E operations...

[Wanderer]

E. Hunter Harrison is scheming again. CN is set to acquire certain key Elgin, Joliet, & Eastern operations for $300 million.

http://biz.yahoo.com/iw/070926/0307142.html

[Wanderer]

I'm going to attack this one point at at time...

I don't think that the loss of competition amongst U.S. based Class I roads by means of further mergers is a good proposition at all. I don't think we have to worry about though, since the STB is not likely to allow any further mega-mergers. After the BNSF-CN "North American Railways" attempt several years ago, the STB has made no secret that they will not be easily impressed in that department.

In terms of Canadian based Class I's acquiring further interests in American rails? I have mixed feelings. While it does bring another major player into the country, which is good, it has as of the last few years been at the expense of several prominent regional roads. The loss of the regional roads into a larger system may be good for the shareholders and execs, it isn't always good for the communities or customers. A transition from a locally based, incorporated regional to a large international Class I can create some big obstacles.  Customers may find it harder to have their problems addressed, and communities may find it complicated to draw attention to safety and quality of life issues.