Why is the C.N taking over U.S class II & Class III Northwest lines in railroading?

Question

Why is the C.N taking over U.S class II & Class III Northwest lines in railroading?

Answer 1

This is a question for conductor Budgie.......................

Answer 2

It all started when CN took over the Illinois Central in the mid-late 90's.  They were happy to purchase the railroad, but what they were really after was the people - they want IC management more than IC engines, cars, and customers.  Perhaps a poor choice, as it definitely became a case of "we bought them, they took us over."

Since then, the list of CN's acquisitions is lengthy.  Mostly, it seems to be a strategy move: the Wisconsin Central was purchased because CN wanted a route from Chicago to Western Canada.  They already had running rights over the WC, but that's not the same as owning the property yourself.  I suppose, too, better they bought it then, than take a chance on a rival buying it later.

CN has not limited it's acquisitions to smaller U.S. roads, either.  They took a 99-year lease from the British Columbia government to takeover BC Rail, recently purchased some short line property near the Alberta oilsands, and attempted (but didn't succeed) a takeover of Ontario Northland several years ago.

Strategy, growing without a mega-merger, and increasing the bottom line seem to be the primary motives for these purchases - but that's only from my seat on the left side of the cab.

Answer 3

we have been buying U.S. lines for many years now , at first it was a cheap way to get the obsolete rolling stock that we prefer , now it's just a habit.