On Friday afternoon (10-29-21), the Canadian Pacific Railway Limited (“CP”) and Kansas City Southern (“KCS”) announced they have jointly filed a railroad control application with the Surface Transportation Board (“STB”) regarding the proposed transaction to create Canadian Pacific Kansas City (“CPKC”), the only single-line railroad linking the United States, Mexico, and Canada.
The comprehensive control application provides an overview of the proposed operational integration of the CP and KCS rail networks, the impact of that consolidation on the companies’ finances and labor needs, and the anticipated competitive and other benefits that will flow from providing shippers with new and better transportation alternatives.
Information in the filing outlines the public and customer benefits a CP-KCS combination would bring, including more efficient north-south trade arteries to support the interconnected supply chains of the United States, Mexico, and Canada.
In a statement prepared for the announcement, Keith Creel, CP President and Chief Executive Officer said, “We are excited to file our joint application for this unique, pro-competitive combination and once-in-a-lifetime partnership. CPKC is an extraordinary opportunity to inject new competition and new capacity into the U.S. rail network, further USMCA trade flows, improve safety, grow employment, and facilitate new passenger services. We are ready to work with the STB as the board gives this transaction a thorough and appropriate review, and ultimately look forward to approval so we can get to work delivering these benefits to the North American economy.”
Patrick J. Ottensmeyer, KCS President and Chief Executive Officer added, “We are pleased to submit this application together and take another important step toward bringing to fruition this historic opportunity for CP and KCS. In fierce competition with other railroads, trucks and other modes of transportation, CPKC will provide new routes, reach broader markets, and create expanded shipping opportunities for customers. This combination will also unlock new infrastructure investment and environmentally-friendly supply chain transportation options that will grow the USMCA economy.”
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Canadian Pacific and Kansas City Southern File Merger Application with STB to Create Only Single-Line Rail Network Linking U.S.-Mexico-Canada