Lombard Illinois USA - One final batch of notes from this week's Midwest Association of Rail Shippers Winter Meeting, marking the organization's 100th anniversary:
 
Blending Cultures
 
Merging railroads can be difficult, simply as a matter of blending cultures.
 
The Penn Central merger famously was hindered by the clashing views of longtime competitors Pennsylvania and New York Central, and there are still railroaders who take a distinct them-and-us view to the Burlington Northern and Santa Fe components of BNSF, although most of them do so now from retirement.
 
But CPKC's Keith Creel said the blending of Canadian Pacific and Kansas City Southern was going well, in large part because the railroads had similar cultures going in, although he continues to devote a lot of time to it.
 
"We've had to learn that we've got to slow down and we've got to explain more, communicate more. I've never had more town halls in my career than the last 12 months. We've committed to doing that to continue through this integration, because, knowing that you're valued, and understanding why we're doing something, and what role you play is critically important," Creel said.
 
Standrad procedure, he said, is follow every one of the railroad's quarterly earnings calls with a trip for a town hall meeting with employees, that will happen again after upcoming call on 30 Jan 2024.
 
"I'm flying somewhere to do a town hall to interact with people, face-to-face to communicate, to build, trust, relationship, explain the tough stuff, because, listen, it's not all easy. I'm not compromising the principles of the way we do business. I'm not going to apologize for it. I think it's the right way to run any business, but I will explain it to you, and I will give you an opportunity to ask questions. And if you do that, I think most human beings say, listen, at least they care enough to explain. I may not like it, but I can get behind it. Don't have to agree. We can agree to disagree," Creel said.
 
Iowa Northern Reaction
 
Canadian National's recent announcement it will purchase the Iowa Northern Railway led to a question for participants in a Wednesday panel on shortlines, did they see a cause for concern over a deal like that, or a move like BNSF buying out the lease for Montana Rail Link?
 
Chuck Baker, president of the American Short Line and Regional Railroad Association, said the circumstances of each such transaction had been different enough that he did not see a trend.
 
"I mean, as a shortline association, I hate it. Obviously, I'd like to see hundreds of new spinoffs and new shortlines created, but my perspective as the association is maybe not the most important one. What works for the customers and the rail network? I just think it's such an individual story. I don't know that it's like a giant trend that's going to change the world of freight rail shipping, from my point of view," Baker said.
 
Cassie Dull, chief commercial officer for Gulf & Atlantic Railways, suggested the deals were an endorsement of the power of shortlines.
 
"It says a lot for what the shortline industry can do with track that was either sold previously or has historically been a shortline. They've got a position that is desirable for larger networks to absorb. Am I concerned about it? Not necessarily. There's a ton of opportunity that's out there in terms of new shortline opportunities. We are in the mode of acquisition, obviously, we acquired four lines last year. So I think there's a ton of opportunity elsewhere. But I take that it's kind of kudos to the shortline industry," Dull said.
 
Mike Peters, chief commercial officer of Genesee & Wyoming, sees the Iowa Northern deal as another example of change spurred by the CPKC merger.
 
"There is change going on in this industry right now, and frankly the CPKC deal triggered a lot of that. That's why some of the Class Is are looking at how do we extend our network, et cetera, and kudos to Keith Creel and the team for kick-starting that a little bit. For us, we're doing a few things different coming out of the Meridian & Bigbee transaction, we're operating the Pan Am Southern now. So we're going to find new opportunities in the changing landscape," Peters said.
 
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