Host: So, you dont foresee any issues coming up, it should be a fairly smooth transition then?
Redd: You bet, I mean its just working operating the service plans and communicating with each other, so we understand what the expectations
are.
Host: Operationally, it doesnt seem to be any more complex, putting CP and KCS together doesnt seem to be, youre not adding
any more complexity, youre taking it out of the mix.
Redd: I would agree, again we operate together at Kansas City, I mean we are working
with each other every day, its not like we dont know each other, we do. What we would create here is really just how do you run through that terminal with some of the trains that need to run through, there will always be local business
in Kansas City. There will always be interchange just due to the fact of nature of the importance of Kansas City. Again, its moving grain through the terminal, its moving some of the crude oil trains, DRU that we have back and forth and
just working close together, right sizing the locomotives, right sizing the assets as our foundations call for, but its those types of things, building the bonds what the synergies they created with PSR, and us learning as well, I mean we
dont, we have to keep an open mind as well because theyre going to teach us this stuff, like well teach them.
Host: So,
youre both PSR railroads, and there is probably a little bit of a difference between how each railroad operates, so what are some the things you would be addressing in terms of PSR operations to try to blend them into a whole?
Redd: Part of it would be train size, wed want to take a look at some of the train sizes they have and locations, I mean we run 200 car trains. I
dont think KCS has gotten that big yet, there are some locations where it would make sense on that railroad, we just need to rationalize siding lanes and again, Bill that would be a journey to get there and to right size the asset, but the
fact is we can, we run two 24s of thunder bay out of Winnipeg so theres opportunities across the railroad that we can do. We can certainly take a look at locomotive sizes, fuel efficiencies, theres opportunity with fuel efficiency on
KCS, and certainly we can learn as well. They run through the mountains down in Mexico just like we do in Canada and just creating that collaboration, a network of each other so we can live and lead off of each other.
Host: So, then you would be able to accomplish some blending of the locomotive fleet? Maybe take the best of each fleet and, as you said, rationalize
the fleet.
Redd: Absolutely, and the second part is just the car supply we have for each other, just turning the asset as far as freight cars, box
cars whatever it may be, I mean sometimes we dont send our equipment offline just due to the fact its interchanging, its a switch offline and we could lose the asset, and this, you got a Texas market that we could cover out of the
west of Canada, and spot in and around Dallas, and certainly get our fleet back to Canada, you know based upon one carrier, one railroad so we know we can turn our assets.