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Oct 23, 2014

Union Pacific CEO: “not a fan” of possible rail mergers

CHICAGO, Oct 23 (Reuters) – The chief executive of No. 1
U.S. railroad Union Pacific Corp said on Thursday that he does
not think mergers of major railroads “make sense” because of the
regulatory hurdles they face and the service issues they create.

“The (service and regulatory challenges) add a whole layer
of concerns for me,” Jack Koraleski told analysts in a
conference call after the company reported a
higher-than-expected third-quarter profit and said it expected a
solid fourth quarter. “I’m really not a fan (of mergers), I
don’t think it’s a good solution.

Oct 22, 2014

FedEx expects record peak volume of 22.6 mln packages on Dec. 15

CHICAGO, Oct 22 (Reuters) – Package delivery company FedEx
Corp on Wednesday forecast a record holiday season this
year, with 22.6 million shipments expected for its anticipated
peak day on Dec. 15.

The Memphis-based company said it looks to move more than
290 million packages between Black Friday, the day after the
U.S. Thanksgiving holiday that kicks off the holiday shopping
season, and Christmas Eve.

Oct 22, 2014

Norfolk Southern profit rises, but misses expectations

CHICAGO, Oct 22 (Reuters) – No. 4 U.S. railroad Norfolk
Southern Corp reported a higher quarterly profit on Wednesday as
the growing economy boosted freight volumes on its network, but
it fell short of Wall Street analyst forecasts.

“We remain focused on ensuring we can support continued
demand for freight rail transportation by hiring additional
employees, investing in new equipment, and completing capacity
projects,” chief executive Wick Moorman said in a statement.

Oct 21, 2014

U.S. Republicans look to gain election ground on Ebola

CHICAGO (Reuters) – Ebola has moved to the front of campaign issues before U.S. November elections, as fear and criticism of the government’s response to cases of the virus in the United States opened a new line of Republican attacks against President Barack Obama and his fellow Democrats.

Republican Senate candidates have bashed Obama’s handling of Ebola, linking it to border security and calling for a travel ban from West African countries hardest hit by the virus.

Oct 17, 2014

As clock winds down, CP Rail’s Harrison hunts for his dream deal

TORONTO/CHICAGO, Oct 17 (Reuters) – Veteran railroad boss
Hunter Harrison has won over many critics since taking over as
chief executive of Canadian Pacific Railway, but he
still has unfinished business – creation of a consolidated North
American railway – and he is running out of time to do it.

That might explain why CP, Canada’s No. 2 railway with
extensive operations in the United States, and the No. 3 U.S.
railway, CSX Corp, have been talking about combining,
even though such a deal would face tough regulatory barriers and
alarm customers.

Oct 16, 2014

Democratic U.S. senator raises concerns over potential CP, CSX deal

CHICAGO (Reuters) – The head of a U.S. Senate subcommittee raised concerns in a letter on Thursday to the U.S. Attorney General and head of the top U.S. rail regulator about a potential merger between Canadian Pacific Railway Ltd and CSX Corp, and called on them both to fully review the antitrust implications of any such deal.

“Given recent concerns about shipping delays and ongoing concerns about anticompetitive conduct in the railroad industry, any further consolidation would prompt significant concern,” Senator Amy Klobuchar, a Democrat representing Minnesota, wrote to Eric Holder and Dan Elliott of the Surface Transportation Board (STB).

Oct 15, 2014

CSX CEO: Major U.S. rail mergers could disrupt service

CHICAGO, Oct 15 (Reuters) – Further consolidation of major
U.S. railroads could lead to service disruptions rather than
improvements in U.S. rail freight congestion, the chief
executive of CSX Corp said in a conference call with analysts on
Wednesday.

“We might actually see a step back in service,” Michael Ward
said when asked whether consolidation would improve rail
capacity.

Oct 15, 2014

CSX CEO: Further US rail consolidation could disrupt service

CHICAGO, Oct 15 (Reuters) – Further consolidation of major
U.S. railroads could lead to service disruptions rather than
improvements in U.S. rail freight congestion, the chief
executive of CSX Corp said in a conference call with analysts on
Wednesday.

“We might actually see a step back in service,” Michael Ward
said when asked whether consolidation would improve rail
capacity.

Oct 14, 2014

CSX profit up, beats forecasts as U.S. economy boosts freight

CHICAGO (Reuters) – No. 3 U.S. railroad CSX Corp on Tuesday reported a rise in third-quarter profit, beating forecasts and predicting double-digit growth for 2015 as it moved more freight on its network due to a growing U.S. economy.

CSX will stay focused on a strategy that will enable it “to grow faster than the economy,” raise prices above inflation and make needed strategic investments, Chief Executive Michael Ward said in a statement accompanying the results.

Oct 13, 2014

Bid report boosts CSX stock, but deal seen unlikely

CHICAGO, Oct 13 (Reuters) – Shares of No. 3 U.S. railroad
CSX Corp rose nearly 10 percent on Monday following a
report of a rebuffed takeover bid by Canadian Pacific Railway
Ltd, but analysts said any such deal would face
significant regulatory and other hurdles.

“You could make the argument that there is not much overlap
between the two networks and between their businesses,” said Jim
Corridore, head of industrials equity research at Standard &
Poor’s. “But they would face significant hurdles of getting a
merger passed by the U.S. Surface Transportation Board (STB).”

    • About Nick

      "Nick Carey is a Chicago-based, British-born journalist who has covered everything from the near-collapse of the Big Three automakers to the U.S. housing crisis. Nick is currently on general assignment, reporting on the human impact of the recession. He previously spent ten years working in central and eastern Europe."
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