White Pass & Yukon Railroad Being Sold

[jhannah]

I guess it makes sense.

http://phx.corporate-ir.net/phoenix.zhtml?c=140690&p=irol-newsArticle&ID=2353631

 

Railroads like this are high-maintenance operations, both rolling stock and track. I'm sure CCL has seen profit potential here; but only time will tell. Perhaps the railroad was having financial difficulty, and this was a way to keep it going. (I don't know this ... just thinking out loud.)

Edited June 7, 2018 by jhannah

[JT1962]

With more and larger ships now cruising Alaska, maybe Carnival is guaranteeing their passengers will have a spot on the trains. I hope this doesn’t affect the access for the independent companies such as Chilkoot Tours.

 

 

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[kwb101]

Here's Carnival's press release:

http://www.carnivalcorp.com/phoenix.zhtml?c=200767&p=irol-newsArticle&ID=2353631

 

 

"These investments will include support for expansion of docking facilities to accommodate the newest generation of cruise ships..." It looks like they'll either be adding dock space, or enlarging the existing ones (Skagway can handle four ships at once now). They certainly get a lot of traffic each year. The 2018 schedule shows 418 "calls" (separate ships), with HAL accounting for 64 and Princess 128. https://www.skagway.org/cvb/page/2018-skagway-cruise-ship-calendar

[geocruiser]

Do you think that this will make CCL stock go up?

[Krazy Kruizers]

Thank you for the links.

Not surprised that Carnival Corporation is buying it. It is expensive to maintain.

[kwb101]

Do you think that this will make CCL stock go up?

I have no experience in stocks, but it may be that TWC is glad to let it do, and CCL is picking it up cheaply: the stock hit a high of about $11 last August, but is now $8.51.

 

Description from WSJ: "TWC Enterprises Ltd. is golf club operator company, which engages in the management of golf club, resort, rail and port. It operates through the following segments: Canadian Golf Club Operations, U.S. Golf Club Operations, Rail and Port Operations, and Corporate Operations. The Canadian Golf Club Operations and U.S. Golf Club Operations segment segment offers ClubLink One Membership More Golf. The Rail and Port Operations segment involves in the rail, tourism, and port operations based in Skagway, Alaska, under the trade name White Pass and Yukon Route. The company was founded on October 22, 1997 and is headquartered in King City, Canada."

 

It may also be that they decided that the WP&Y doesn't fit into their mostly-golf portfolio any more.

[RDC1]

HAL also uses the train to bring land tour participants to/from their ships at Skagway. As such the train is more important to their operations than just as an excursion.

[Boatdrill]

Another article https://www.cruiseindustrynews.com/cruise-news/19124-carnival-corp-acquires-port-railroad-and-retail-operations-in-alaska.html

[jhannah]

HAL also uses the train to bring land tour participants to/from their ships at Skagway. As such the train is more important to their operations than just as an excursion.

That would be Alaska Railroad ... separate from WP&Y Railroad.

[geocruiser]

I have no experience in stocks, but it may be that TWC is glad to let it do, and CCL is picking it up cheaply: the stock hit a high of about $11 last August, but is now $8.51.

 

Description from WSJ: "TWC Enterprises Ltd. is golf club operator company, which engages in the management of golf club, resort, rail and port. It operates through the following segments: Canadian Golf Club Operations, U.S. Golf Club Operations, Rail and Port Operations, and Corporate Operations. The Canadian Golf Club Operations and U.S. Golf Club Operations segment segment offers ClubLink One Membership More Golf. The Rail and Port Operations segment involves in the rail, tourism, and port operations based in Skagway, Alaska, under the trade name White Pass and Yukon Route. The company was founded on October 22, 1997 and is headquartered in King City, Canada."

 

It may also be that they decided that the WP&Y doesn't fit into their mostly-golf portfolio any more.

I just checked the stock. It went up to day. to13.50 +2.50 (+22.73%)

[kwb101]

HAL also uses the train to bring land tour participants to/from their ships at Skagway. As such the train is more important to their operations than just as an excursion.

Opening the road between Whitehorse and Skagway in 1978 is what caused the railroad to close in 1982. When we rode the train into Skagwsy from Fraser last year, our bus with our luggage arrived before we did, so I suspect that it would be cheaper for HAL to bus people in.

Also, the railroad provides a nice, pricy shore excursion for all those cruise ships that stop in Skagway.

[rafinmd]

HAL also uses the train to bring land tour participants to/from their ships at Skagway. As such the train is more important to their operations than just as an excursion.

 

That would be Alaska Railroad ... separate from WP&Y Railroad.

No, it isn't. Alaska Railroad brings tour participants to SEWARD. WYPR is used to tale people from Denali/Yukon tours to SKAGWAY. This year it's the 10-14 day cruise tours that include 3 (Northbound) or 4(Southbound) day cruises on the Volendam or Nieuw Amsterdam.

 

In about 6 weeks I'll be boarding the WYPR in SKAGWAY after disembarking the Volendam.

 

Roy

[Gail & Marty sailing away]

Thanks for the info

 

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[rkacruiser]

Perhaps another thought from CCL Executives was that those guests from non-CCL Brand ships who choose to take this railway will make a contribution to CCL's bottom line by taking the train/tour.

[puppycanducruise]

Thanks for the info.

[curtdesilets]

It may be expensive to maintain, but those prices charged to the passengers are outrageous. I think they are definitely turning a profit.

- - -

On another note, I heard it was recently closed due to a landslide. Any word if it is open again?

[1ANGELCAT]

It may be expensive to maintain, but those prices charged to the passengers are outrageous. I think they are definitely turning a profit.

- - -

On another note, I heard it was recently closed due to a landslide. Any word if it is open again?

 

 

 

Yes it is back running. I’m booked for it June 27.

 

 

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[JT1962]

It may be expensive to maintain, but those prices charged to the passengers are outrageous. I think they are definitely turning a profit.

[\QUOTE]

 

Most excursions in Alaska are expensive. The short tourism season, higher costs in general and high demand are all factors. For Alaska, I generally budget 2 - 2 1/2 times what I would expect on a similar excursion in the Caribbean. For example, we are looking at a 3 1/2 hour whale watching excursion in Dominica in December. The cost is $ 50 per person. A similar tour in Alaska is $ 115 - $ 160.

 

 

 

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Edited June 8, 2018 by JT1962

[curtdesilets]

It may be expensive to maintain, but those prices charged to the passengers are outrageous. I think they are definitely turning a profit.

[\QUOTE]

 

Most excursions in Alaska are expensive. The short tourism season, higher costs in general and high demand are all factors. For Alaska, I generally budget 2 - 2 1/2 times what I would expect on a similar excursion in the Caribbean. For example, we are looking at a 3 1/2 hour whale watching excursion in Dominica in December. The cost is $ 50 per person. A similar tour in Alaska is $ 115 - $ 160.

 

 

 

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That is true. But specifically for this Skagway Train: We were on the train a few cruises ago and they were running 3 or 4 trips in a day. The lines were crazy. A quick calculation based on our fare was that their take was insane. Hard to say how much the cruise lines cut were however.

[kwb101]

It may be expensive to maintain, but those prices charged to the passengers are outrageous. I think they are definitely turning a profit.

I worked for over 20 years in a railroad museum, and also with groups operating tourist railroads, and I suspect that the big reason the fares are so high is insurance, and the cost of maintaining aging railway equipment, especially the steam locomotive. Boilers have a limited life based on when they were first put in service. The clock starts ticking once that happens, they have to be replaced after a certain number of days, and they're very expensive. Also, keeping the right-of-way safe is another big expense.

 

If you check out other tourist railroads operating in the mountains, I think you'll see that the WP&Y isn't that far out of line.

[Hlitner]

This makes sense for CCL who has made plenty of other investments in cruise/travel related items. For example, CCL owns several port facilities in the Caribbean and Central America.

 

Hank