Quote:
Originally Posted by GoTrans
Where would CP run it’s freight? If CP ran on the hfr route then they would expect at a minimum that the government would rebuild the original mainline, give them access to freight customers or compensation for not having access to them. CN would not agree to share the lakeshore route and neither would Via.
CP made some serious mistakes when is sold it’s QC and NB lines to 3rd parties. CP lost a bit of its mojo when CP Limited sold off its other subsidiaries. It only recently repurchased it’s route through the eastern townships, Maine and obtaining access from NB Southern (aka the Irvings) to the port of Saint John
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I agree that the opportunity to strike while the iron was hot is worse than it was several years ago before CP reacquired the lines in the Eastern townships and Maine. Still, CP’s presence east of Toronto is still fairly minor, and I wonder if their long term strategy now that they acquired KCS is to be the continent’s first true north-south spine from the industrial heart of Mexico up town Canada. Besides they have access to eastern ports through the Gulf, which is much more important than Atlantic Canada in the grand scheme of things.
So I think that CP wouldn’t dismiss the purchase of the Belleville sub out of hand. The question is how much would it cost. Given that the pricetag of HFR is $12B and growing, I don’t think CP would turn it down for, say, $4B, especially if they just bought all of KCS for US$27B. The purchase agreement wouldn’t prohibit CP from using the Belleville sub, it would just change the terms so VIA (or whoever) would have priority over scheduling and CP would be the railroad leasing track time.
Beyond that the Belleville sub is significantly less risky than HFR. The line is already built and has the track geometry for a decent speed, and it’s a much more direct route. It also parallels the existing Via route on the Kingston sub for a significant portion, so you could probably move all VIA service there, relieving CN at least as far east as Trenton.
It misses out on Peterborough but, frankly, Peterborough really only needs a commuter service to Toronto. As acottawa correctly identifies, getting through Peterborough without significant investment in a new line will basically add 20+ minutes and a forced stop for every service because there are too many expensive obstacles in the way.