David buys Goliath - When the Rio Grande bought the Southern Pacific

3 days ago
8

How do! :D

In 1988, one of America's smallest railroads purchased one of its largest, when the Denver and Rio Grande Western Railroad, facing a rapidly contracting market, successfully bought the financially ailing Southern Pacific, creating a new range of intercontinental train travel between the Midwest and the Pacific coast.

However, this alliance, despite a major rebranding and huge investment in updating the ageing infrastructure inherited from the Southern Pacific, would only last eight years, as with the Class I railroads rapidly seeking to consolidate, leading to the merger of the Burlington Northern and the Santa Fe, the Union Pacific followed suit rapidly by procuring the Southern Pacific/Rio Grande combine, thereby wiping away in one stroke two of the most famous names in American western railroading.

Chapters:

0:00 - Preamble
1:15 - Rise of the Rio Grande
4:05 - Deregulation Dilemmas
7:34 - Enter the Southern Pacific
11:34 - David buys Goliath
14:06 - Taking Third Place
17:44 - Uniting with the Union Pacific
21:18 - Conclusion

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References:
- Key Model World (and their respective sources)
- New York Times (and their respective sources)
- Wikipedia (and its respective references)

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