Page 7 of 8
Re: KC metro gaining as a major distribution hub
Posted: Fri May 14, 2021 8:37 am
by beautyfromashes
normalthings wrote: ↑Fri May 14, 2021 8:29 am
CP Ceo had been meeting with KC and Gov
Yes, and I get the impression that he might just now be starting to realize his deal is slipping away. Hopefully, he comes back with a better, strong offer that entrenches KC as a centerpiece of their future business. He needs to go big.
Re: KC metro gaining as a major distribution hub
Posted: Fri May 14, 2021 8:38 am
by kboish
promises during a buyout mean nothing.
Re: KC metro gaining as a major distribution hub
Posted: Fri May 14, 2021 9:26 am
by normalthings
kboish wrote: ↑Fri May 14, 2021 8:38 am
promises during a buyout mean nothing.
CN sent their KC guy, the COO, solely to try and win hearts and minds. CP sent their CEO. It’s all the same. KCS clearly will bow to whoever gives them the most money (not that it’s a bad thing).
Re: KC metro gaining as a major distribution hub
Posted: Fri May 14, 2021 9:35 am
by flyingember
normalthings wrote: ↑Fri May 14, 2021 9:26 am
KCS clearly will bow to whoever gives them the most money (not that it’s a bad thing).
They're publicly traded. The board of KCS would be open to a lawsuit if they didn't do this. The primary fiduciary requirement is to produce the biggest possible return for their shareholders. If that means laying off half the staff, that's what they do.
Re: KC metro gaining as a major distribution hub
Posted: Fri May 14, 2021 9:36 am
by earthling
kboish wrote: ↑Fri May 14, 2021 8:38 am
promises during a buyout mean nothing.
Yeah, see Sprint/Tmobile or most any megamerger for that matter.
Re: KC metro gaining as a major distribution hub
Posted: Fri May 14, 2021 11:02 am
by beautyfromashes
Government regulatory approval is required for the deal, so this just isn’t about most money to the shareholders. I think our government officials both locally and federal can kill either of these offers if they want to. So, getting buyin from them is almost mandatory to close the deal. That shouldn’t happen unless they prove value to the community as a whole. City leaders should inject themselves into the middle of the negotiations.
Re: KC metro gaining as a major distribution hub
Posted: Fri May 14, 2021 9:21 pm
by FangKC
I doubt city leaders have any leverage. I doubt state leaders have any leverage. The only leverage would be the federal government since they can kill a deal based on national security and anti-trust. I doubt there will be a problem though.
Re: KC metro gaining as a major distribution hub
Posted: Sat May 15, 2021 1:27 am
by WoodDraw
FangKC wrote: ↑Fri May 14, 2021 9:21 pm
I doubt city leaders have any leverage. I doubt state leaders have any leverage. The only leverage would be the federal government since they can kill a deal based on national security and anti-trust. I doubt there will be a problem though.
This is correct. Especially in an industry with such high fixed costs.
Our leverage is basically we're already here and it's fine.
Re: KC metro gaining as a major distribution hub
Posted: Fri May 28, 2021 7:10 am
by earthling
On Canadian National, not an optimistic article...
Even promising to keep something resembling KC Southern’s present workforce of 710 is tough.
Reilly couldn’t estimate what employment might be under Canadian National. Its U.S. headquarters is in suburban Chicago, and Canadian National has 2,500 employees in that area.
Canadian National couldn’t fold up operations in Chicago and move everyone to Kansas City, he said. Most employees are in locations near physical assets like rail yards and maintenance shops.
The transportation game also has changed in the past two decades, he said. Where and how freight moves is decided by logistics pros with advanced technology, not a manufacturer’s sales department.
https://www.bizjournals.com/kansascity/ ... erger.html
Seems there's a pretty good chance Chicago will be the center of it all in long run with KC at best having a US HQ in name only. Chicago of course has nonstop flights to many more Canadian/Mexican cities as well. KC still loses a Fortune 1000 company either way with maybe loss of the philanthropy as well eventually. Seems Canada Pacific deal might be better for KC.
Re: KC metro gaining as a major distribution hub
Posted: Thu Jul 01, 2021 9:32 am
by earthling
As of last week...
CN, Canadian Pacific nail down more support for merger campaigns
Former STB chief economist argues in favor of CN’s voting trust
CN vies for union support of CN-KCS merger
Canadian Pacific lobbies for support
https://www.freightwaves.com/news/cn-ca ... -campaigns
Re: KC metro gaining as a major distribution hub
Posted: Thu Jul 01, 2021 9:35 am
by earthling
Newmark Q1 industrial support. It shows underground space and breaks out downtown/midtown. Underground is 10% of metro space.
https://www.nmrk.com/storage-nmrk/uploa ... Market.pdf
Kansas City is one the most active industrial markets in the U.S.,
ranking ninth in total net absorption and 12th in both total deliveries
and SF under construction, while ranking 17th in overall market size.
Re: KC metro gaining as a major distribution hub
Posted: Thu Jul 01, 2021 9:43 am
by earthling
KC ranks 5th for shipping logistics, according to..
https://freightcowboy.com/business/top- ... -shipping/
Still considered largest freight rail center by tonnage...
https://thescarbroughgroup.com/why-choo ... -location/
Re: KC metro gaining as a major distribution hub
Posted: Thu Jul 01, 2021 9:55 am
by dukuboy1
here's hoping our niche as major distribution hub will spur other start up companies and allow for some established companies to operate offices in the area in support of the industry. Would be nice to have that as business line to grown around with our others. Also good idea to be diversified when it comes to workforce & industry for METRO. Make it a regional draw for jobs of several kinds
Re: KC metro gaining as a major distribution hub
Posted: Thu Jul 01, 2021 12:26 pm
by brewcrew1000
You can also get here from Hawaii in 3 days according to the map
Re: KC metro gaining as a major distribution hub
Posted: Mon Aug 30, 2021 1:32 pm
by earthling
CBRE Q2 report. Outside Chicago, Indy has been the Midwest growth king for quite a while with KC growing industrial/distro space quite well too...
http://cbre.vo.llnwd.net/grgservices/se ... %202021.pd
Re: KC metro gaining as a major distribution hub
Posted: Fri Sep 03, 2021 1:10 pm
by earthling
Yardi Matrix shows that KC ranks 2nd in new industrial construction/planned relative to existing stock. KC's playing catch-up in this industry depending on how measured but on a solidly notable pace no matter how you slice it. Indy hotter in Midwest though in existing and raw growth.
Re: KC metro gaining as a major distribution hub
Posted: Sun Sep 12, 2021 4:23 pm
by normalthings
KCS dropping National for pacific. National shareholder wants CN CEO replaced over his KCS offer.
Re: KC metro gaining as a major distribution hub
Posted: Sun Sep 12, 2021 11:11 pm
by dukuboy1
Which of the 2 is best for KC? Looking at jobs & growth impact for the city. KCS was a great KC company & would hate to see it gutted by this merger. Looking to avoid local trends of major companies merging or agreeing to buyouts to leave employees twisting in the breeze.
Re: KC metro gaining as a major distribution hub
Posted: Sun Sep 12, 2021 11:18 pm
by beautyfromashes
dukuboy1 wrote: ↑Sun Sep 12, 2021 11:11 pm
Which of the 2 is best for KC? Looking at jobs & growth impact for the city. KCS was a great KC company & would hate to see it gutted by this merger. Looking to avoid local trends of major companies merging or agreeing to buyouts to leave employees twisting in the breeze.
Doesn’t look like it is really a choice between the two anymore. CN bid couldn’t win regulatory approval. CP now seems only play for KCS.
Re: KC metro gaining as a major distribution hub
Posted: Mon Sep 13, 2021 9:03 am
by dukuboy1
beautyfromashes wrote: ↑Sun Sep 12, 2021 11:18 pm
dukuboy1 wrote: ↑Sun Sep 12, 2021 11:11 pm
Which of the 2 is best for KC? Looking at jobs & growth impact for the city. KCS was a great KC company & would hate to see it gutted by this merger. Looking to avoid local trends of major companies merging or agreeing to buyouts to leave employees twisting in the breeze.
Doesn’t look like it is really a choice between the two anymore. CN bid couldn’t win regulatory approval. CP now seems only play for KCS.
Gotcha, well I hope that the CP merger proves to be good for KC