Canadian media trumpet same old misconceptions about DM&E plan
CPR deal expected to pass, despite Mayo
Railway's now-delayed plan to haul coal east from Wyoming is supported by 55 of 56 cities along the line
(LP NOTE: The above statement is incorrect. At least three cities — Rochester, Mankato and Brookings — and one county — Blue Earth, Minnesota — do not have existing agreements with the DM&E.)
BRENT JANG, ReportonBusiness.com
Canadian Pacific Railway Ltd.'s plan to haul coal in the U.S. Midwest is supported by 55 of 56 American cities along the rail route, leaving Rochester, Minn. - home to the Mayo Clinic - with at best a long-shot chance of spoiling CPR's party, says a research report by National Bank Financial Inc.
Analyst David Newman predicted yesterday that CPR will eventually win U.S. regulatory approval to buy Dakota Minnesota & Eastern Railroad Corp. for $1.5-billion (U.S.), albeit after a lengthy wait until October, 2008, to get the green light.
Calgary-based CPR's main fight is against the Mayo Clinic and the Rochester Coalition, a local group of business and government leaders battling to keep the little-used DM&E tracks from becoming a major route for high-speed trains carrying coal from the Powder River Basin in Wyoming.
"CPR will only have to contend with political pressure, in our view, led by the Mayo Clinic," Mr. Newman wrote in his 36-page report. "The world renowned Mayo Clinic employs 28,000 people, has more than 1,500 beds and is a medical hub and economic engine in the upper Midwest."
The U.S. Surface Transportation Board's rejection of CPR's request for fast-track approval of its purchase of DM&E, the largest regional railway in the United States, places the deal in regulatory limbo for nearly a year.
(More here.)
Railway's now-delayed plan to haul coal east from Wyoming is supported by 55 of 56 cities along the line
(LP NOTE: The above statement is incorrect. At least three cities — Rochester, Mankato and Brookings — and one county — Blue Earth, Minnesota — do not have existing agreements with the DM&E.)
BRENT JANG, ReportonBusiness.com
Canadian Pacific Railway Ltd.'s plan to haul coal in the U.S. Midwest is supported by 55 of 56 American cities along the rail route, leaving Rochester, Minn. - home to the Mayo Clinic - with at best a long-shot chance of spoiling CPR's party, says a research report by National Bank Financial Inc.
Analyst David Newman predicted yesterday that CPR will eventually win U.S. regulatory approval to buy Dakota Minnesota & Eastern Railroad Corp. for $1.5-billion (U.S.), albeit after a lengthy wait until October, 2008, to get the green light.
Calgary-based CPR's main fight is against the Mayo Clinic and the Rochester Coalition, a local group of business and government leaders battling to keep the little-used DM&E tracks from becoming a major route for high-speed trains carrying coal from the Powder River Basin in Wyoming.
"CPR will only have to contend with political pressure, in our view, led by the Mayo Clinic," Mr. Newman wrote in his 36-page report. "The world renowned Mayo Clinic employs 28,000 people, has more than 1,500 beds and is a medical hub and economic engine in the upper Midwest."
The U.S. Surface Transportation Board's rejection of CPR's request for fast-track approval of its purchase of DM&E, the largest regional railway in the United States, places the deal in regulatory limbo for nearly a year.
(More here.)
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