I like Trains

It's no wonder there were fatalities.






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How to lift 435,000 pounds of 2-6-6-2 locomotive for restoration:

http://youtu.be/WNuUsycg6KQ



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Dear Jim,

We believe that combining our two great organizations will allow us to form an integrated transcontinental railroad with the scale and reach to deliver unsurpassed levels of safety and service to our customers and communities while also increasing competition and creating significant shareholder value.

We propose a 50% cash 50% stock transaction based on Friday's closing stock price for both CP and NSC in which NSC shareholders would receive $46.72 in cash and 0.348 shares of stock in a new company which would own CP and NSC. The new company would be listed on both the New York and Toronto Stock Exchanges, and maintain a strong investment grade credit rating. Our proposal represents a substantial initial 23.0% premium to NSC's 45-day VWAP of $79.14.1 In addition to providing NSC shareholders with a significant cash payment, the proposed transaction will provide NSC shareholders with an opportunity for meaningful upside appreciation in the future as synergies are realized as NSC shareholders will own 41% of the new company.

Our advisors at J.P. Morgan have assisted us in valuing the newly merged company by taking into account future operating performance, synergies, expected earnings power and anticipated trading multiples. In light of the substantial synergies created by the combination, we believe that the fair value of the new company would be approximately $270.68 per share at the time of transaction closure—which is assumed to occur on December 31, 2017. As a result, NSC shareholders will receive at that time $46.72 in cash plus $94.16 in market value of the stock of the combined company which on a present value basis at the time of the anticipated announcement (March 31, 2016) is expected to represent total value of $126.18 per share—which is a 59.4% premium to NSC's 45-day VWAP of $79.14. In addition, NSC shareholders would continue to receive a dividend of $0.59 per quarter during the pendency of the regulatory review of the transaction.

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1Based on CP VWAP of $191.27 CAD (exchange rate of 1.31 CAD per USD) and fully diluted share capital of 154.7 million (common stock outstanding per 10/16/2015 MD&A and options, PSU's and RSU's per 3/3/2015 10-K), NSC VWAP of $79.14 USD and fully diluted share capital of 302.7 million (common stock outstanding per 10/28/2015 10-Q and options, PSU's and RSU's per 2/11/2015 10-K), and VWAP period from 9/22/2015 to 11/6/2015.
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This proposal to NSC shareholders has the following additional potential benefits:
•Creates transcontinental rail network connecting the major industrial production and population centers across North America
•Global reach through premier ports located across the U.S. Gulf, Atlantic and Pacific North American coasts
•Integrated operations across at least 4 major rail gateways
•Enhances service offering to shippers
•Combines two premier railroads with exceptional safety records
•More than US$1.8 billion in annual operating synergies achieved over the next several years
•Substantial tax savings in addition to operating synergies
•Up to 45% pro forma EPS accretion with run-rate synergies
•Strong balance sheet, targeting mid BBB rating with approximately 4 times debt / EBITDA, and significant operating cash flow to deleverage to target leverage of 2.5 times within 2.5 years
•Collaborative Surface Transportation Board regulatory process
•Financing commitment of US$14.2 billion from J.P. Morgan Securities LLC

Moreover, as our combined network creates more comprehensive end-to-end shipment solutions for our customers while reducing congestion in key corridors such as Chicago, network capacity will expand allowing us to improve service and lower costs—which is both pro-shipper and pro-competition. A combined network will also lead to faster growth for the new entity versus what either of us would be able to achieve on our own and, importantly, would create a larger, more diversified book of business less dependent on volatile commodities such as crude oil or thermal coal.

Finally, the United States and Canada would benefit from having an end-to-end shipment solution that improves safety, reduces highway congestion, improves service, lowers cost and increases overall freight capacity (which is vital to support expanded economic growth) behind an environmentally friendly form of transportation funded exclusively with private versus public expenditures.

Certainty of consummating such an historic combination will be critical for both of us. To that end, we have worked extensively with our lead transaction counsel Simpson Thacher and our United States and Canadian regulatory counsel of Stinson Leonard Street and Bennett Jones, respectively, to confirm not only the feasibility of the proposed transaction but also our plan to ensure a smooth and expeditious review and approval process. We have also engaged the services of J.P. Morgan Securities LLC which has issued a "highly confident letter" regarding our ability to finance the proposed transaction—which will not be subject to a financing contingency attached as Exhibit A.

This proposal, which has received the unanimous support of our Board of Directors, is a non-binding expression of our current views, which remains, among other things, subject to satisfactory completion of due diligence, the negotiation, execution and delivery of mutually satisfactory definitive agreements, approval of the definitive agreements by your and our Boards of Directors, approval of the transaction by your and our shareholders, and receipt of customary regulatory approvals.

We are ready to begin working with you and your team immediately on this transformational opportunity and are prepared to commit whatever resources may be necessary to complete the proposed transaction expeditiously and in a manner which both recognizes and fairly addresses any social considerations related to the successful integration of our two great companies.



Yours sincerely,

E. Hunter Harrison
Chief Executive Officer
Canadian Pacific Railway

Andrew F. Reardon
Chairman of the Board
Canadian Pacific Railway


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150 mph Acela Express

https://www.youtube.com/watch?v=k533tEM8w_g







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I want.




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Does Johnny know about this?







Two types of excursions are available:

Trough Trip
Our regularly-scheduled excursion is a 3-hour trip that goes southbound through the Trough to Sycamore Bridge and back. It is approximately 35 miles round-trip.


All-Day Trip to Petersburg
On the last Saturday of every month, we offer an 8-hour trip to Petersburg. This trip is an longer version of the Trough Trip but goes further south through Moorefield and into Petersburg. (It is approximately 76 miles round-trip.)There is a layover in Petersburg, about 1 1/2 to 2 hours long. Passengers can enjoy the South Side Depot as well as shops and restaurants during the layover.



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Shay engines:
"Invented to do the impossible..."

"...One of the Shays (Western Maryland #6) is the last one ever built and the largest still in existence, weighing more than 162 tons..."
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Close.

Liquefied Natural Gas.



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