Good.......maybe they`ll stop

Good.......maybe they`ll stop firing people for doing their jobs.

That is good news!

Long live an independent NS!

Savings through cutting

Savings through cutting instead of going after new business....and no, they're not going to stop firing people, just ask some of my brothers..

Tax Inversion rules?

This subject has been mention here in the UK on a forum as a possible reason for the abandonment of talks, now I'm in the UK so have no real idea. It would seem (simplistically) to revolve around the idea of removing the NS tax revenue from from the US under new tax inversion rules, anyone got any comments?

I've never heard of the

I've never heard of the Northfolk Southern, but it is good news for Norfolk Southern.

Alco251

The reason CP abandoned any further action on the merger is because, the NS stock holders voted against the merger. The NS stock holders are currently agreeing with the Board of Directors and the CEO that an independent NS with a lower operating ratio is the best course of action currently. How all this will fare for the employees is yet to be seen. NS has stated they want to close 2 hump yards, get rid of 300 older locomotives along with some secondary lines and reduce the work force by 2,000 people by 2020. But if the CP take over would have happened, a lot more people would have lost their jobs and possibly all hump yards would have been closed. Hunter Harrison the current CEO of CP, views hump yards as very costly to operate and maintain. Since Hunter Harrison has become CEO of CP Rail, he's closed all but one hump yard on the CP rail system. 

There are a number of issues working against the railroad right now, namely the lost of coal and oil shipments and while cheap fuel is available, the railroads have a harder time competing with the trucking industry in the intermodal market. But the bottom line is, this has nothing to do with tax laws and is simply about the bottom line. The Stock holders want to see the operating ratio below 65%. 

@Rich

Good summation, Rich. 

Harrison is right about hump yards -- they are costly to maintain. 

Hard Times for NS

Even with the merger attempts put to rest, "at least for now", NS has tough times ahead and hard decisions to make.

I do not think terminations and closings can be avoided if the railroad is to stay competitive.  The downturn in coal traffic certainly hurt and replacement business is not a guarantee.  Increase in regional intermodal, (once the Panama Canal expansion is complete), could be a bright spot for NS but it's still way to early to see how this might pan out.  

Certainly James Squires metal is going to be put to the test in the coming days!

Joe