Category: News

Canadian National announced this week an offer to acquire Kansas City Southern in a cash-and-stock transaction valued at $33.7 billion, or $325 per share. The offer, submitted in a letter to KCS’s board of directors, follows a $29 billion offer from Canadian Pacific Railway in March to buy the nation’s smallest Class I railroad. Under the terms of the proposal, following closing into a voting trust, KCS shareholders will receive $200 in cash and 1.059 shares of CN common stock for each KCS common share. Based on the March 19, 2021, closing price of CN shares, CN’s proposal is valued at $325 per KCS share. The offer represents a 21% improvement over the current value of KCS’ agreement with CP, CN said in a release. In the proposal submitted to KCS’s board of directors, CN President and CEO JJ Ruest said combining the companies offers greater choice and efficiencies for…

Canadian Pacific Railway is acquiring Kansas City Southern for $29 billion (USD) in stock and cash, creating North America’s first rail network connecting Canada, the U.S. and Mexico, the companies announced Sunday. The new company will be called Canadian Pacific Kansas City (CPKC). While remaining the smallest of six U.S. Class 1 railroads by revenue, the combined company will be much larger and more competitive, operating approximately 20,000 miles of rail, employing close to 20,000 people and generating revenues of approximately $8.7 billion based on 2020 numbers. The deal values KCS shares at $275 each — 23 percent above Friday’s close — and is subject to approval of the U.S. Surface Transportation Board. CP will assume $3.8 billion in KCS outstanding debt, valuing the deal at $25 million. Boards from each company unanimously approved combining. Following the closing into a voting trust, KCS common shareholders will receive 0.489 of a…

ScaleTrains.com, Inc., announced at the Virtual Railroad Hobby Show on Sunday that it acquired M.T.H. Electric Trains’ HO-scale and S-gauge tooling assets at the end of last year. The acquisition includes steam and diesel locomotives, freight cars and track in both scales. HO tooling includes turbine and electric locomotives, subway sets, passenger cars and other models. Engineering schematics for several all-new steam-era HO projects also were received as part of the agreement. “M.T.H. is recognized as a leading manufacturer of HO-scale steam locomotives,” ScaleTrains.com President Shane Wilson said in a statement. “M.T.H.’s HO products also allow us to broaden our product line into passenger cars, track and more. We believe there is an opportunity to grow the S market as well.” Both scales are being melded into ScaleTrains.com’s umbrella of brands, including Rivet Counter. Several molds have been transferred to the ScaleTrains.com factory, and testing is underway. Over the next…

Two regional U.S. train shows in January are on schedule, although they’re taking different paths to reach rail enthusiasts. The 36th annual Dallas Area Train Show is going on as planned Jan. 16-17, raising the curtain at the Plano Event Center. Nearly two thousand miles away in Palmer, MA, the Amherst Railway Society Railroad Hobby Show, one of the country’s largest, will host a virtual show a couple of weekends later after shelving its annual in-person event.   In Plano, amid strict covid-19 protocols, vendors will be selling and clubs will be running trains. The show, sponsored by the North Texas Council of Railroad Clubs, has scaled down to accommodate the safety of guests, vendors and others. Officials have worked closely with the event center to establish social distancing, masking, temperature screening and restricted entrances and exits, as well as contactless payment. Occupancy, monitored by an app, will be limited…

By TIM BLACKWELL/Cowcatcher Magazine Christmas came early for the Red River Railroad Museum in Denison, TX. Located in an office in the former Katy Depot downtown, it is a treasure trove of history, including accounts of how the railroad made its way through Indian Territory from Kansas to the bawdy little town of Red River City. Outside reside fairly well preserved relics of the Missouri-Kansas-Texas Railroad – an F unit and a couple of cabooses. The Katy’s arrival in 1872 put Denison on the map. The railroad’s car shops, headquarters, hospital and Ray Yard sprawled across the town, providing a vital connection from the Midwest to the Gulf of Mexico. Denison, about 100 miles north of Dallas, was the northernmost anchor in the North Texas transportation network for freight and passenger movements. By 1901 the city had grown enough to establish the first electric Interurban railway to Sherman and eventually…

Additional infrastructure investments identified While making its annual pitch for federal funding, Amtrak formalized a request this fall for up to $4.857 billion this fiscal year to bolster the national passenger railroad network, which has been hit hard by the pandemic. Another $5 billion is needed to build necessary infrastructure and help stimulate an economic rebound. In a letter to Congress, Amtrak President and CEO Bill Flynn justified updating the railroad’s forecast for FY 2020 because of a slow return of riders after a huge drop at the start of covid-19. At the beginning, Amtrak shut down routes as ridership plummeted because of lockdowns. Revenues dropped 83 percent from March to July compared to 2019. To offset, Amtrak cut expenses, including reducing the size of consists on long-distance trains. Now ridership has slowly returned and some routes have reopened, but Amtrak still anticipates FY 2021 ridership and revenue improving to…