First they have to downsize, then they cry to the government that the only way to help the economy is to consolidate with CSX.
I Give it 2 years tops. Once a class one railroad achieves a merger acquisition with another railroad the rest look for their target and chance to bi--h equality to the government.
2026 UPCSX. Write down save it whatever you have to do. It will happen.
UP-CN is more likely. Manufacturing shift from china to central america. A lot of political turmoil right now in south / central america, power players setting up there to create a political environment in those countries that favors them.
During the town hall, JV spoke about how important the past mergers were and how it shaped the current UP network. That was foreshadowing for what is to come. If he feels connecting Mexico to Canada is the best opportunity it will be UP-CN. If he feels connecting the west and east coast is more beneficial, it will be UP-CSX. Several presentations have been made at various management meetings about the importance of trade coming out of Mexico. The executives against PSR and mergers are gone. Something is brewing, you'll see.
Yep, a paranormal medium channeled hunter Harrison and he said he is gonna be big daddy again
Its going to happen and there is already a monopoly. They will say its to streamline moving goods across the country. Then the other railroads will follow suite. The two companies in the last merger are not even comparable to the current UP and CSX. Do you really think UP invested in NetControl just for the current network? The technology in place now makes a merger easier. If you think it can't happen then you are delusional
You may want to do a little reading on what exactly a monopoly is. Union Pacific is a monopoly in several areas of the United States. It’s the large players squeezing out the little guys chance of doing business thats more of a problem not coast to coast that matters.
@klz+1 you are right in everything you stated. But its been a decade or more since UP management has worried about operating a railroad. A merger would give cause for shareholders and the market to get hot, itchy, and excited about their shares. Then if they were allowed to merger the stock boosts up, all the deferred maintenance issues (and costs) get blamed on “growing pains” and management is “figuring it out”. Shareholders are distracted by the merger stuff as they ignore the increases in maintenance costs. Management is not gonna just come out and say “we have to fix the stuff PSR let break and wear out”, from that perspective shareholders just hear profits have to spent fixing what management neglected intentionally and they have no reason to be distracted into wanting UP stock. Recall what the SP went thru under Phil Anschutz before that merger.
Hate to say it, but that's not how it works. The UP can scream all they want. The UP has the highest P/E ratio of any RR right now. In simpler terms, they can't afford a merger. Then there's the formality of the STB agreeing to it, because they have direct oversight for mergers. The government has to agree to the merger. Historically, the UP didn't do so hot on the last merger. Then there's the real time data that's shows the UP has a hard time handling the territory they already have. It would be nearly impossible for the government to agree to a UP merger with the CSX, when the current executive team is very fond of downsizing the operations. Oh yeah the government doesn't like monopolies either. The UP merging with the CSX would create a monopoly that the government would take exception to and stop the merger from ever happening. What sense does it make to downsize the company, then merge with another railroad to become bigger than before the downsizing. See the contradiction there?