Please help support this website by becoming a TrainWeb Patron for just $5 per month. Click here for more info.

HOME APRHF TRAINWEB.COM .NET .ORG .US FORUM RAILCAMS TRAVEL RAILFAN MODEL PARTY
TrainWeb Reports & Web Sites: Featured Today Past Highlights Previously Featured Slideshows The Big Stories Directory
EASTERN RAILROAD NEWS
Last Updated 3/17/98 18:10 PM

This is a reminder to everyone that the ERN page may be updated more than once or twice a day. On heavy news days, we will continue to post information, as it becomes available. For those who didn't get to see all of the newest information posted late yesterday, go to March 16, 1998, and review the newest postings. - Kevin Burkholder

HOT NEWS

Canadian Pacific has ordered General Electric AC44CW's to be numbered 8500-8559 for delivery this year. These 60 units will be the property of the SOO Line or Heavy Haul U.S. This is to be in addition to the 80 units already on order for Canadian Pacific. No paint scheme has been specified, but one could guess that with CP's "unified" Beaver Logo being applied to units even assigned to the St. Lawrence & Hudson, they will arrive with the rodent-adorned sides.-Bryce Lee


Delaware-Lackawanna local CS-2 interchanged the MLW M636 4743 to the D&H at Taylor, Pa. today just after 12PM. The engine will come north on tonights P-3. NYS&W will pick the engine up at East Binghamton on Wednesday. -SJ Botts

Canadian National Railway Company (``CN'') announced today that it has completed its cash tender offer for 46,051,761 shares of Illinois Central Corporation (``IC'') common stock, representing approximately 75 percent of the outstanding IC common stock, at a price of US$39.00 per IC share.

As of the expiration of the tender offer, approximately 46,950,000 shares of IC's common stock had been tendered, including approximately 11,560,000 shares tendered by guaranteed delivery. Since more than 46,051,761 shares were tendered and not withdrawn prior to the expiration date, CN has accepted for payment and will pay for only 46,051,761 shares on a pro rata basis. Because of the difficulty of determining the precise number of IC shares properly tendered and not withdrawn, CN does not expect that it will be able to announce the final results of such pro-ration or pay for any IC shares until at least seven New York Stock Exchange trading days from completion of the tender offer, which closed March 13. On a preliminary basis, the pro-ration factor will be approximately 98 percent.

CN and IC will now proceed to consummate a second-step merger in which the remaining 25 percent of the IC shares will be exchanged for CN shares with a value equal to the same cash price paid in the tender offer, subject to certain collar arrangements. IC has approximately 61.4 million shares outstanding, giving the transaction a total equity value of approximately US$2.4 billion.

CN President and Chief Executive Officer Paul M. Tellier stated: ``We are very enthusiastic about the combination of CN and IC. With the successful completion of our tender offer, we are another step closer to realizing the substantial benefits that this combination will bring to shareholders, customers and employees.''

The shares acquired by CN pursuant to the tender offer, as well as those to be acquired in the second step merger, will be placed in a voting trust pending approval of the transaction by the United States Surface Transportation Board. This approval is expected in the first half of 1999.

Goldman, Sachs & Co. and Schroder & Co. Inc. acted as Dealer Managers for the offer and MacKenzie Partners, Inc. acted as Information Agent. -Canadian National


FORT WORTH, Texas, March 16, 1998 -- Canadian National Railway Company (CN) and CSX Intermodal (CSXI) today announced they will join member railroads -- The Burlington Northern and Santa Fe Railway Company (BNSF) and Kansas City Southern Railway Company (KCS) -- as participants in the North American Container System (NACS). NACS was created in February 1996 as a nation-wide double-stack network encompassing almost every major U.S. market.

The NACS program is designed to facilitate the free interchange of 48-foot domestic containers between member railroads without restrictions. With a growing fleet of more than 2,500 containers and chassis strategically located across a broad geographic network, NACS gives shippers a truly flexible transportation alternative to reach more major U.S. and Canadian markets than ever before.

Double-stack trains have proven to provide shipping economies, as well as a superior ride quality, not found in other segments of freight transportation. In the last few years, all four participating railroads have made significant investments to increase double-stack capacity on their systems.

"NACS offers our customers an efficient vehicle to extend their reach into markets in Canada and the U.S.," says Craig Littzen, vice president, Intermodal/Automotive, Canadian National. "In addition, our participation in NACS builds on the investments CN has made recently to our new Chicago Gateway Intermodal Terminal."

"The free-running nature of the NACS product allows CSX Intermodal to provide its customers exciting new service opportunities in key intermodal lanes," says Alan Peck, vice president, domestic marketing and pricing, CSX Intermodal. "The program also makes equipment control a part of our customer's responsibility thereby helping us better manage these container assets -- allowing us, through the NACS product, to increase the value of the shipper's transportation dollar."

"We're very excited about CN and CSXI joining the NACS program," says Steve Branscum, vice president, Intermodal Business Unit, BNSF. "The program has grown steadily over the past two years. The combined network of the four participating railroads provides customers superior market coverage with real economic benefits and equipment flexibility. We look forward to exploring opportunities to expand the program even further in the near future."

Established in February 1996 and now comprised of four intermodal rail networks (BNSF, CN, CSXI and KCS), NACS provides shippers with a dedicated fleet of more than 2,500 free-running intermodal containers that can be interchanged between all participating rail networks. The NACS program provides access to most major U.S. and Canadian markets. -BNSF


PHILADELPHIA, March 16 -- SEPTA is pleased and encouraged to learn that TWU Local 234's leadership has announced that SEPTA riders will be given sufficient notice in the event a strike is called and that they need not worry about being stranded. SEPTA earlier today reported that rider uncertainty and anxiety over being stranded by a strike without sufficient advanced notice contributed to a significant decline in today's daily ridership. SEPTA remains hopeful that the current negotiations will result in a new agreement without a strike. -SEPTA CO.

 Return to News Index Page                                                                                 Return to East Penn Home Page

Please check this location daily, as new information will be posted, as it becomes available. If you have news to report or information regarding railroads in the Eastern United States, please send e-mail to Kevin Burkholder at KBurkholder@psghs.edu

Click below for pages in the directory of TrainWeb sites:
0-9 A B C D E
F G H I J K
L M N O P Q
R S T U V W
X Y Z
CLICK HERE FOR THE FULL CATEGORY DIRECTORY

Visit our Rail Magazine promotion trading partners:      (Click here to add your print rail magazine.)


ad pos61 ad pos63
ad pos62 ad pos64

TrainWeb Reports & Web Sites: Featured Today Past Highlights Previously Featured Slideshows The Big Stories Directory
HOME APRHF TRAINWEB.COM .NET .ORG .US FORUM RAILCAMS TRAVEL RAILFAN MODEL PARTY

About Us | Contact Us | Advertise With Us | Silver Rails Country for Train Enthusiasts

shopify site analytics
View TrainWeb.US Stats  | Page updated: 01/21/2019  | Version 2021a10a  | Links  | ©2015-2021 NordiLusta, LLC