LSRC to Welcome Long-Term Strategic Investment
Re: LSRC to Welcome Long-Term Strategic Investment
The article actually said very little.
Like why LSRC needs their money for starters.
And what LSRC is giving up for that money.
edit:
I don't think LSRC needs the money to support the current operations.
Is LSRC looking to land some bigger fish?
Like why LSRC needs their money for starters.
And what LSRC is giving up for that money.
edit:
I don't think LSRC needs the money to support the current operations.
Is LSRC looking to land some bigger fish?
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Re: LSRC to Welcome Long-Term Strategic Investment
I think every railroad is trying to do that regardless given the times we’re in
but hasn’t there been speculation that if CSX were to give up any more of it’s lines in the state (I.e. the PH&D) that LSRC would get first rights refusal because they’ve bought a few lines from CSX before?
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Re: LSRC to Welcome Long-Term Strategic Investment
LSRC will have the opportunity to bid on the lines as will other companies/investors. It is mostly about who puts in the highest bid.
David Collins wrote: ↑Thu Mar 10, 2022 7:23 amBut hasn’t there been speculation that if CSX were to give up any more of it’s lines in the state (I.e. the PH&D) that LSRC would get first rights refusal because they’ve bought a few lines from CSX before?
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Re: LSRC to Welcome Long-Term Strategic Investment
The "article" is uninformative because it's just an empty corporate press release. It doesn't even say how much of a stake Antin bought.
Paris-based Antin has its fingers in a lot of stuff, everything from railroads to water and oil pipelines to fiber optics. It just had its IPO in September.
Paris-based Antin has its fingers in a lot of stuff, everything from railroads to water and oil pipelines to fiber optics. It just had its IPO in September.
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Re: LSRC to Welcome Long-Term Strategic Investment
CN’s trackage rights contract with CSX running over the Flint Sub to access the PH&D is non-transferable if CSX was to sell the line. Additionally, LSRC would not gain rights to run over the CN yard to go from their paper mill spur to the Marysville branch. They would have to have power on each line and interchange all cars with CN.David Collins wrote: ↑Thu Mar 10, 2022 7:23 amI think every railroad is trying to do that regardless given the times we’re in
but hasn’t there been speculation that if CSX were to give up any more of it’s lines in the state (I.e. the PH&D) that LSRC would get first rights refusal because they’ve bought a few lines from CSX before?
Therefore, I don’t see CSX getting much value from a potential sale of the PH&D branch.
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Re: LSRC to Welcome Long-Term Strategic Investment
You know new agreements can be made right?LansingRailFan wrote: ↑Thu Mar 10, 2022 10:27 am
CN’s trackage rights contract with CSX running over the Flint Sub to access the PH&D is non-transferable if CSX was to sell the line. Additionally, LSRC would not gain rights to run over the CN yard to go from their paper mill spur to the Marysville branch. They would have to have power on each line and interchange all cars with CN.
Therefore, I don’t see CSX getting much value from a potential sale of the PH&D branch.
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Re: LSRC to Welcome Long-Term Strategic Investment
Yes, new agreements can be negotiated. Thank you.1TrackMind wrote: ↑Thu Mar 10, 2022 2:06 pmYou know new agreements can be made right?LansingRailFan wrote: ↑Thu Mar 10, 2022 10:27 am
CN’s trackage rights contract with CSX running over the Flint Sub to access the PH&D is non-transferable if CSX was to sell the line. Additionally, LSRC would not gain rights to run over the CN yard to go from their paper mill spur to the Marysville branch. They would have to have power on each line and interchange all cars with CN.
Therefore, I don’t see CSX getting much value from a potential sale of the PH&D branch.
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Re: LSRC to Welcome Long-Term Strategic Investment
It’s almost certainly not to make them cash-flow positive but to make more capital available now for enhancements and improvements they need/want to make with the goal of greater returns later.
Think things like infrastructure and mechanical upgrades, such as finishing CWR and tie renewal on the Huron Sub, making more of the railroad accepting to 286k cars, investing in more company-owned rolling stock, etc. All of this needs capital and it’s likely that the LSRC sought investors rather than loans, with is typically preferable if you can convince investors to buy-in.
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Re: LSRC to Welcome Long-Term Strategic Investment
Rickoff said. “We look forward to working with Antin to grow our customer base and expand our rail network.”
Could this be foreshadowing another take over of a Class 1 line?
Could this be foreshadowing another take over of a Class 1 line?
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Re: LSRC to Welcome Long-Term Strategic Investment
Sounds like a firm that is going to bleed another company dry!! Why would Lakes States sell out when there doing so well by themselves? It dosent make $s & cents to me.
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Re: LSRC to Welcome Long-Term Strategic Investment
Gotta have $$$ to grow!
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Re: LSRC to Welcome Long-Term Strategic Investment
If the new owners do not take care of their customers, they will lose them. LSRC picked up new business by creatively solving unique problems for their customers. Large short line/investment companies are less flexible and usually run the old railroad way...my way or the highway.
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Re: LSRC to Welcome Long-Term Strategic Investment
We still don't know how much of a stake Antin bought. The Railfan article saying it was "sold" may merely be a careless misinterpretation of the press release. It seems that if Lake State was sold in its entirety, the companies would have said that and not simply called it an "investment" and being "partners."
Re: LSRC to Welcome Long-Term Strategic Investment
If a sale/change of control, a filing would need to be made with the Surface Transportation Board.
As of now, there is none.
As of now, there is none.
Re: LSRC to Welcome Long-Term Strategic Investment
That does seem to be the case, regardless of whether approval is rubber-stamped or not.
The STB's Performance and Accountability Report Fiscal Year 2021 says:
"Board approval is required for a non-carrier...to acquire or operate an existing line of railroad...Non-carriers...may seek exemptions under certain conditions, and there are expedited procedures for obtaining Board authorization under several class exemptions for certain types of transactions that generally require minimal scrutiny...Non-carriers may acquire rail lines under a class exemption. Required notifications, together with the Board's ability to revoke class exemptions in certain transactions, prevent exemption misuse."
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Re: LSRC to Welcome Long-Term Strategic Investment
I looked on Wikipedia and i read that Antin is based in Paris France with offices in London England and Luxembourg witch is a country near Germany and France.
Last edited by penn central on Mon Mar 21, 2022 6:29 pm, edited 1 time in total.
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Re: LSRC to Welcome Long-Term Strategic Investment
Who knows what's happening behind closed doors... It's been a fun last couple years watching Lake State expand its reach and service.David Collins wrote: ↑Mon Mar 14, 2022 2:20 pmRickoff said. “We look forward to working with Antin to grow our customer base and expand our rail network.”
Could this be foreshadowing another take over of a Class 1 line?
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