II guess I went into information overload mode. The key thing is travel time of 18 days versus 32 days is very significant on the cost of many of the parts. I am visualizing the cash flow, but that is a different story. There is an interesting article about the Alabama plant online at SUPPLYCHAINBRAIN, but it is out of date.
A friend of mine is in the import/export business and now has the Mercedes Benz account. MB has coordinated plants in Alabama, Germany and near Shanghai.
All motors are assembled in Alabama and sent airfreight to Shanghai and Stuttgart. Moderately valued parts and tires are sent from Alabama in containers to Shanghai via Long Beach - travel time is 18 days, 7 days by rail, 1 day loading on a ship and 10 days at sea. Smaller, cheaper parts like nuts and bolts are sent by container to Savannah, then through the Panama Canal to Shanghai with a travel time of 32 days.
I am under the impression that Stuttgart send some parts via the Suez canal and some parts to Alabama through Savannah and Shanghai supplies some parts to 'Bama and Stuttgart, making for a complicated supply chain.
Looks like Mercedes will not not be making any drastic changes soon.
KCS does not run only north and south. The Meridian bypass , from Meridian, Miss. west to Dallas is so important because it gets around the bottleneck of New Orleans. It is so busy that they are double tracking it and installing CTC. - it was dark territory (no signals).
I have been in CSX since 2007 with a purchase price of about $13.
I bought GWR at $8 a share in 2002 and sold some off recently at $102 a share and I still have more to sell. That railroad is good for me even though I had to go for over a year in the red .
Tripled my money on SEB.
One rule of thumb that I try to follow is hold a stock for at least 3 years even if it has lost half its value.
Saw it again last Friday. An idiot walking down the middle of the track with a locomotive behind him, blowing his horn, trying to tell him to get out of the way.
But leave your ethics at the door. You are financing the tobacco, liquor, gambling, X rate movie, and pornography industries. Genetically modified foods, abortion drugs,etc. are also on the list.
The Canadian National bought up the Illinois Central. That gave them access to seaports at Mobile and New Orleans.
Have a friend in the import/export business -he was telling me much Japanese and Korean traffic is being diverted to Prince Rupert.
CSX Corp. (CSX) said Wednesday at the start of a conference call that it wouldn't comment on "rumors or market speculation," making it unlikely that it would make a statement today on Canadian Pacific Railway Ltd.'s(CP) proposed merger.
"As a long-standing policy here at CSX, we do not comment on rumors or market speculation, and we will not address questions that do not pertain to our quarterly results," investor relations head David Baggs told analysts at the start of the freight rail operator's third-quarter earnings conference call.
CSX didn't accept a merger approach last week from Canadian Pacific Chief Executive Hunter Harrison, The Wall Street Journal reported Sunday, citing people familiar with the talks. Discussions are still possible between the two companies, these people added.
DOW JONES & COMPANY, INC. 10:57 AM ET 10/14/2014
10:57 EDT - A potential Canadian Pacific (CP)/CSX merger -- first reported by the WSJ on Sunday -- would "make a ton of sense," Scotiabank says. The merged company would add more value with East-West Coast port access, and faster transit times, with crude-by-rail and container traffic being the most to benefit, firm says. It should also improve operations at CSX, where operating ratio of 72.3% would benefit from CP's current management structure. Timing for a deal may be a bit earlier than expected given that CP remains in the middle of its turnaround story, but Scotiabank notes CP's relationship with activist investor Pershing Square would help support a possible deal.
The fact is that the pipelines to the west coast are few and far between. UP shipments could rise significantly.
You forget who made the offer - E. Hunter Harrison. He was president of the Illinois Central when the offer was made by the Canadian National to buy it up and he ended up as President of the Canadian National/Illinois Central.
He was brought out of retirement to replace CP's president. He is one of the top men in railroads.