Berkshire & Eastern Thriving

[AdvancedApproach]

Take notes UP, NS, CSX, BNSF, CN, CPKC.

Berkshire & Eastern proves good service drives growth: Analysis - Trains

Pat Ottensmeyer, the late Kansas City Southern chief executive, had a favorite saying: Service begets growth. It’s not the most catchy phrase you’ll ever hear. But it’s true. And nowhere is that more apparent than in New England, where Genesee & Wyoming’s Berkshire & Eastern is growing a bumper...

www.trains.com

 

[JCitron]

Take notes UP, NS, CSX, BNSF, CN, CPKC.

Berkshire & Eastern proves good service drives growth: Analysis - Trains

Pat Ottensmeyer, the late Kansas City Southern chief executive, had a favorite saying: Service begets growth. It’s not the most catchy phrase you’ll ever hear. But it’s true. And nowhere is that more apparent than in New England, where Genesee & Wyoming’s Berkshire & Eastern is growing a bumper...

www.trains.com

The B&E is a Genesee and Wyoming operation that operates the former Boston and Maine route that became the Pan Am Southern when NS and Pan Am Railways created the partnership and the 50-50 split ownership of the route between Ayer, MA and Mechanicville, NY.

As part of the sale to CSX, CSX had to divest itself from this route due to a conflict of interest when they purchased Pan Am Railways because they already operate a similar route in the region between Selkirk, NY and Boston. It's been rumored that the B&E will become the operator of this line once CSX sells its portion of PAS because they have no interest in operating this redundant line.

 

[sw1500]

The B&E is a Genesee and Wyoming operation that operates the former Boston and Maine route that became the Pan Am Southern when NS and Pan Am Railways created the partnership and the 50-50 split ownership of the route between Ayer, MA and Mechanicville, NY.

As part of the sale to CSX, CSX had to divest itself from this route due to a conflict of interest when they purchased Pan Am Railways because they already operate a similar route in the region between Selkirk, NY and Boston. It's been rumored that the B&E will become the operator of this line once CSX sells its portion of PAS because they have no interest in operating this redundant line.

CSX did not divest their portion of PAS and B&E is already the designated operator.

 

[JCitron]

CSX did not divest their portion of PAS and B&E is already the designated operator.

They may not have divested, but they can't run it either as part of their purchase of PAR. I should've worded it better. The B&E is operating it on their behalf for now. We'll see what happens. CSX definitely said they don't want the line. It's a good thing that it was done this way instead of letting everything rot like Guilford did with the Mountain Division and with the D&H's line between Binghamton, NY and Carbondale, PA.

It's hard to believe that this was once a 60 mph passenger and 40 mph freight line. My late piano teacher had relatives out in Hoosac Tunnel MA. Her father was a freight agent for the B&M and got free tickets on the railroad. She would ride out there in the summer for vacations and her brothers would continue on to North Adams to go shopping and hang out. She remembered seeing the electric locomotives pulling the passenger trains through the tunnel. On the trip out there, she mentioned one day that young boys would board the train at various stations then get off at another station down the line. She said that they were selling ice cream and other treats. She passed at 100 back on Jan 1st, 2021.

 

[sw1500]

It was a 60 mph passenger and 40 mph freight line more recently than that. I was on a couple of excursion trains One to Rotterdam Junction and then another one to Adams MA in the 80's. The Fitchburg Route tracks were better than the B&A back then.

 

[JCitron]

It was a 60 mph passenger and 40 mph freight line more recently than that. I was on a couple of excursion trains One to Rotterdam Junction and then another one to Adams MA in the 80's. The Fitchburg Route tracks were better than the B&A back then.

Yup. Guilford killed it. They had the route down to 10 mph through Gardner and Athol. Sad.

 

[TSwenson]

That 10mph was timetable too... the way Guilford/Pan Am did things there probably were a bunch of 5mph slow orders as well (and all just far enough apart so you never really did 10mph). I work on the "East" end of the former MEC/Guilford/PAR property and, I can say, there have been a lot of good changes with CSX ownership, and some bad ones too.

 

[JCitron]

That 10mph was timetable too... the way Guilford/Pan Am did things there probably were a bunch of 5mph slow orders as well (and all just far enough apart so you never really did 10mph). I work on the "East" end of the former MEC/Guilford/PAR property and, I can say, there have been a lot of good changes with CSX ownership, and some bad ones too.

I've heard that too. I saw that CSX had a hiring page up for crews out of Lawrence not long ago. Their starting rate was far lower than the rest of CSX and their maximum rate was only $45K a year. I thought that was not only odd but also, really, really unfair given the cost of living these days.

 

[TSwenson]

I've heard that too. I saw that CSX had a hiring page up for crews out of Lawrence not long ago. Their starting rate was far lower than the rest of CSX and their maximum rate was only $45K a year. I thought that was not only odd but also, really, really unfair given the cost of living these days.

That may be the start/training pay (but with theses knuckle heads who knows). The Lawrence area T&E has traditionally been filled from NH/ME by forcing junior personnel "west" to follow their seniority. Our joke is "welcome to Pan Am 2.0" and it does seem to be uncomfortably accurate.

 

[JCitron]

That may be the start/training pay (but with theses knuckle heads who knows). The Lawrence area T&E has traditionally been filled from NH/ME by forcing junior personnel "west" to follow their seniority. Our joke is "welcome to Pan Am 2.0" and it does seem to be uncomfortably accurate.

Starting pay sounds okay, but I'm not so sure. The Merrimack Valley has always been a lower pay area historically.

Let's hope this isn't PAR 2.0 that would mean removing customers and rails!

 

[TSwenson]

Starting pay sounds okay, but I'm not so sure. The Merrimack Valley has always been a lower pay area historically.

Let's hope this isn't PAR 2.0 that would mean removing customers and rails!

PAR 2.0 is probably just the view from inside speaking, but so many things are the same, and creepily so, such as the inability to staff the Lawrence area with local folks (PAR would force employees from NH/ME into that area).

 

[JCitron]

PAR 2.0 is probably just the view from inside speaking, but so many things are the same, and creepily so, such as the inability to staff the Lawrence area with local folks (PAR would force employees from NH/ME into that area).

Is this due to local management still in place? In other words, business as usual. We have that issue with our local hospital. Steward was forced to file bankruptcy due to their hedge fund owner not paying bills, cutting staff, and creating unsafe hospitals while handing out bonuses and raises to the hospital CEO.

The hospital system was purchased by Partners in Health, aka Mass. General. The local hospital here, located 3/4's of a mile down the street, is still run by the same crappy staff and still providing unsafe services. The hospital has a reputation now and is referred to as Death Valley hospital instead of Merrimack Valley hospital.

 

[TSwenson]

Is this due to local management still in place? In other words, business as usual. We have that issue with our local hospital. Steward was forced to file bankruptcy due to their hedge fund owner not paying bills, cutting staff, and creating unsafe hospitals while handing out bonuses and raises to the hospital CEO.

The hospital system was purchased by Partners in Health, aka Mass. General. The local hospital here, located 3/4's of a mile down the street, is still run by the same crappy staff and still providing unsafe services. The hospital has a reputation now and is referred to as Death Valley hospital instead of Merrimack Valley hospital.

I would think some of it is management retention, some of it is that PAR sort of ran PSR before it was in vouge, and all that kind of makes lots of stuff feel the same. Some of it is probably CSX learning how badly PAR suckered them on the sale... and having to find out for themselves what works (or doesn't). For those unfamiliar with PAR/Guilford, it took 3 railroads (MEC, B&M, and the D&H, but later was forced to give the D&H up) and striped them to the bones in the style of PSR, deferred maintenance, poor personnel management, and cronyism were hallmarks of PAR.

 

[JCitron]

I would think some of it is management retention, some of it is that PAR sort of ran PSR before it was in vouge, and all that kind of makes lots of stuff feel the same. Some of it is probably CSX learning how badly PAR suckered them on the sale... and having to find out for themselves what works (or doesn't). For those unfamiliar with PAR/Guilford, it took 3 railroads (MEC, B&M, and the D&H, but later was forced to give the D&H up) and striped them to the bones in the style of PSR, deferred maintenance, poor personnel management, and cronyism were hallmarks of PAR.

I think the pains of the sale are coming to light much like a homeowner finding things decades later when they're renovating that were never disclosed during the initial sale. Raises hand. We've found all kinds of things with my house that make me wonder why it hasn't fallen in.

Yup. Guilford destroyed the D&H. Granted the railroad was hurting, but still what they did was truly uncalled for. That to me showed their true reason for buying the rest of the system. It was all about what they could buy up and sell off in parts for profit.

From what I remember, Fink et al had come from the Penn Central if that says anything. Apparently, what they learned or did back then was carried over to Guilford and PAR.

 

[TSwenson]

Even now some of the stories from that era still circulate, and based on what I've heard of those stories, once you were in management you didn't get fired, just put where you did the least harm. It ran as a 10mph railroad because they made money no mater what, if not from the trains then from the property.
It looks like the "west end" is going to survive under the B&E, but I believe the bulk of the traffic to the former PAR will run over the old B&A (now CSX), what that means is probably still being figured out.
As for Fink et al the former PAR employees are watching what's happening, and hopefully we will be surprised, because that means it's good.

 

[JCitron]

Even now some of the stories from that era still circulate, and based on what I've heard of those stories, once you were in management you didn't get fired, just put where you did the least harm. It ran as a 10mph railroad because they made money no mater what, if not from the trains then from the property.
It looks like the "west end" is going to survive under the B&E, but I believe the bulk of the traffic to the former PAR will run over the old B&A (now CSX), what that means is probably still being figured out.
As for Fink et al the former PAR employees are watching what's happening, and hopefully we will be surprised, because that means it's good.

The work environment and ethic sounds a lot like Polaroid when I was there. People would arrive and hang out all day doing nothing. Like PAR, Polaroid sank into the ground as well. My division was sold off and lasted another decade before their customers closed shop during the recession.

I had a feeling CSX was going to do that. I'm glad that the B&E will keep the line operating. I've always wondered what would've happened instead of NS had purchased the system instead.

 

[TSwenson]

Well, from the stories I've heard, it was more like shuffling people who screwed up to places they were less visible.

It would be an interesting speculation of the "What Ifs" of the PAR sale (NS, G&W, outside investors, etc.) and the results would be... entertaining. As to the NS purchase speculation, I guess we'd be looking at a UP takeover... (shudders).
While, speculatively, NS was involved enough to not want the PAR, G&W was another major contender and did bid on it, ultimately be refused in favor of the CSX offer. Other rumors circulated as to the entities interested in the PAR while it was for sale, some reasonable and some wild (and I do mean wild and unlikely). I heard everything from venture capital and employee buyouts to historical societies and tourist railroads, it was certainly entertaining to hear some of it, especially some of the more unlikely ones.

 

[JCitron]

Well, from the stories I've heard, it was more like shuffling people who screwed up to places they were less visible.

This is 100% Polaroid!

There were stories about an employee who used to look like he was working all kinds of hours. He was working hard alright at sleeping. Working as a draftsman, he'd position his pencil so that it appeared he was drawing something on the paper. This worked for years until someone noticed that his pencil didn't move. The gent wasn't fired and was moved to another job within the company until he retired. There was also someone who was terminated but continued to work there anyway, collect a paycheck, and had benefits.

Speculating is fun! I agree with what could transpire that would be a really sad thing with UP-NS then including what we have up here.