Cummins’ Locomotive Demonstrates It’s Great For Freight

[james j neiweem]

Tilcon is owned by New Castle from Ireland.

[kscarbel2]

9 hours ago, james j neiweem said:

Tilcon is owned by New Castle from Ireland.

DUBLIN, Ireland, Oct. 13, 1997 /PRNewswire/ -- [Dublin-based] CRH plc, the international  building materials group, announces the purchase by the Oldcastle Materials Group of the assets of New York Trap Rock Corporation for a cash consideration  of US$40 million (27.4 million Irish pounds sterling).  The consideration is  fully asset-backed and no goodwill arises.

     New York Trap Rock, which was founded in 1897, is a substantial aggregates  supplier operating two major quarries in southern New York state with permitted aggregate reserves in excess of 330 million tons.  The company services its local markets by truck and also ships aggregates along the Hudson  river to the metropolitan New York/New Jersey, Connecticut and Long Island areas using an owned fleet of 116 barges.  In 1996, New York Trap Rock sold  4.7 million tons of aggregates, and reported trading profit of US$3.6 million  (2.5 million pounds) on sales revenues of US$48.2 million (33.0 million pounds).

     The southern New York region is one of the most heavily traveled areas in the United States and this, in conjunction with severe winters, creates strong demand in the region for highway expenditures.  New York Trap Rock is an ideal complement to Tilcon New York, Oldcastle Materials Group's existing operation in this region, which produces approximately 3 million tons of aggregates annually.  Following acquisition, New York Trap Rock will be combined with Tilcon's New York division, reporting to Joe Abate, President and Chief Executive Officer of Tilcon, Inc.  This combination will yield significant synergies for the enlarged New York division allowing for greater efficiency of production, transportation, selling and administration.

     Commenting on the acquisition, Tom Hill, President of Oldcastle Materials Group, said:  "With its excellently located reserves and its significant barging operations, New York Trap Rock represents an exciting opportunity for  the Oldcastle Materials Group to expand its position in crushed stone in the important southern New York region, building on the strong base acquired with Tilcon in 1996.  The combination of New York Trap Rock with Tilcon's existing operations in New York will achieve very sizable cost reductions through production and transport efficiencies and allow us to offer enhanced service to a broad customer base, thereby generating trading margins in the order of 10% to 12%.

     The expanded Oldcastle Materials Group will have an annual output of 45 million tons of aggregates, 15 million tons of asphalt and 2.7 million cubic yards of ready-mixed concrete.

     Liam O'Mahony, Chief Executive of Oldcastle, Inc., the holding company for CRH's North American operations, adds: "New York Trap Rock is the latest in a range of acquisitions completed in the United States over the last four weeks, representing significant additions to three of the five Oldcastle product groups.  Total combined consideration for the eight separate deals announced amounts to almost US$200 million."

 

 

[TS7]

Oldcastle, Inc. is the largest asphalt paver in the US. Pike ( NH ), Michigan Paving and Shelly Co. ( Ohio ) plus many others. Ask Tim.

[james j neiweem]

Old castle makes more sense. Old Europe money.

[RoadwayR]

Back to the topic, I am not sure where Cummins thinks they are going with this.  All they make is a prime mover suitable for railroad service, but what about the rest of the locomotive?  Are they going to compete with EMD and G.E., or are they looking only at the repower business?  Yes there are a LOT of old 645 powered EMD's still in service (old G.E.'s tend to get scrapped!) but they run and parts are no problem.  Unless the E.P.A. comes down on old locomotives I am not seeing big repower business.   

[TeamsterGrrrl]

Two problems. The first is philosophical- Cummins prefers to make engines and not whole vehicles. The second is practical- It takes some huge equipment to build and move a near ninety foot long locomotive frame, so everybody except EMD and GE strip old frames and build a new locomotive on them.

[Timmyb]

10 hours ago, RoadwayR said:

Back to the topic, I am not sure where Cummins thinks they are going with this.  All they make is a prime mover suitable for railroad service, but what about the rest of the locomotive?  Are they going to compete with EMD and G.E., or are they looking only at the repower business?  Yes there are a LOT of old 645 powered EMD's still in service (old G.E.'s tend to get scrapped!) but they run and parts are no problem.  Unless the E.P.A. comes down on old locomotives I am not seeing big repower business.   

Cummins was already using the QSK95 for power stations, so they probably figured for not much more cost they could offer it in locomotives. Increases their market.