Chicago Freight Car News:
CFCL is proud to announce the inaugural issue of our CRDXtra! mini-magazine. In this publication, we will feature current trends and topics that are relevant to our industry. We hope you enjoy reading it as much as we enjoyed writing it.
CFCL’s very own Scott Baker, Bill Elwess, Rhonda Zielinski, Jim Kennedy & Bill Plavsic recently attended the Midwest Association of Rail Shippers Winter Meeting, held in Oak Brook, IL. The theme of the two-day event was entitled “Meeting the Challenges of High Demand”. Our five CFCL representatives were among more than 600 attendees, including leasing companies, shippers, railroads, manufacturers, investors, brokers and others that work in the industry.
Todd Kahn, V.P. of Portfolio Management and Marketing at Chicago Freight Car Leasing Co. (CFCL), will address the attendees of the Rail Equipment Finance Conference on Mar. 3 in La Quinta, CA. He will inform attendees on this year’s industry outlook for covered hopper cars.
The Surface Transportation Board (STB) has agreed to examine "paper barrier" provisions on a case-by-case basis. Paper Barriers are a common provision in rail line lease or sale agreements. These restrict a tenant or purchasing railroad from interchanging traffic with carriers other than the railroad leasing the line or selling railroad. The STB is proposing new disclosure rules to ensure advance regulatory scrutiny of any such provisions involving a new sale or lease.
The Canadian National Railway Company (CN) and United States Steel Corporation (NYSE) announced an agreement under which CN will acquire the major portion of the Elgin, Joliet and Eastern Railway Company (EJ&E) for US$300 million. The acquisition is subject to regulatory review by the U.S. Surface Transportation Board (STB). EJ&E, a Class II railroad, operates over 198 main line miles of track that encircles the City of Chicago from Waukegan, Ill., on the north, to Joliet, Ill., on the west, to Gary, Ind., on the southeast, and then to South Chicago.
The Canadian Pacific Railway (CPR) and Dakota, Minnesota & Eastern Railroad Corp. (DM&E) announced they reached an agreement under which CPR would acquire the 2,500-mile DM&E and its subsidiaries, including the Iowa, Chicago & Eastern Railroad Corp., for U.S.$1.5 billion and future contingent payments. The acquisition is subject to U.S. Surface Transportation Board review, which could take up to 10 months.