(The Oneonta Daily Star posted the following article by Amy L. Ashbridge on its website on July 2.)
ONEONTA, N.Y. — Any job impact on railway workers from a new contract between two companies is yet to be seen, a Canadian Pacific Railway spokesman said.
Canadian Pacific and Norfolk Southern Railway signed a memorandum of understanding Wednesday that will exchange trackage rights, freight haulage and yard services, according to a statement from Canadian Pacific.
“We expect the changes will generate higher traffic volumes and revenues, greater productivity and lower operating costs,” said Canadian Pacific President and Chief Executive Officer Rob Ritchie.
Canadian Pacific bought the Delaware and Hudson Railway in 1991. While the last remaining Delaware and Hudson employees left Oneonta in 1996, some still commute to Binghamton and Saratoga.
The arrangement established between Canadian Pacific and Norfolk Southern will allow Norfolk Southern to operate trains over Canadian Pacific’s lines between Saratoga Springs and Binghamton.
Under the plan, Canadian Pacific will close its freight yard in Buffalo, while Norfolk Southern will close a similar yard in Binghamton.
“Most of the media are probably wondering about the job impact,” Canadian Pacific spokesman Paul Thurston said Thursday. “It’s probably too early to tell.”
Canadian media have reported the railway company as saying 25 jobs would be cut on the Delaware and Hudson line, and 45 jobs would be created on a new run between Detroit and Chicago.
“The arrangements will generate higher revenue for CPR and provide NSR with a substantially shorter route to Quebec and the Maritime provinces,” a release from Canadian Pacific said.
In 2003, Canadian Pacific said it was restructuring the northeastern U.S. operations, which it operates as Delaware and Hudson.
Then, railway officials said they were looking for ways to increase freight volumes, reduce operating costs and improve earnings.
“I am pleased that Canadian Pacific President and Chief Executive Officer Rob Ritchie and Norfolk Southern Chairman, President and Chief Executive Officer David Good have the foresight to preserve the Delaware and Hudson Railway in the Northeast, continuing a long tradition of Class 1 freight rail service in New York,” state Department of Transportation Commissioner Joseph Boardman said in a written statement.
Canadian Railway has 14,000 miles of rail in the United States and Canada. Norfolk Southern has 21,500 miles in 22 states, the District of Columbia and Ontario.