Back in September Canadian Pacific and Kansas City Southern agreed to merge. Now, CP and KCS have submitted a joint application to the Surface Transportation Board to merge both railroads, with the name of the combined railroad would be CPKC. This combined network would reach Canada, the United States and Mexico which will create a “single-line railroad,” said the companies in a release last Friday.
What Goes into This Application?
According to Freightwaves, the application includes an overview of the proposed operational integration of both companies’ railroads, the impacts a merger would have on finances and labor needs, and statements describing what benefits they say would arise for shippers as a result of the consolidation. CP and KCS also say the filing outlines how more efficient north-south trader arteries will support the interconnected supply chains between the North American countries. “We are excited to file our joint application for this unique, pro-competitive combination and once-in-a-lifetime partnership,” said Keith Creel, CP President and CEO said.
The Positive Impact This Has
With this merger more than 1,000 new jobs systemwide will be created, including more than 700 in the U.S, over the next three years as the railroads continue to expand rail operations. In addition to new jobs being created, more than $275 million will be spent in capital investments to address rail safety and capacity between Louisiana and the Upper Midwest. CPKC will provide new routes, reach broader markets, and create expanded shipping opportunities for customers.
It will also unlock new infrastructure investment and environmentally friendly supply chain transportation options that will grow the USMCA economy,” said Pat Ottensmeyer, KCS President and CEO. KC and CP say the merged company’s intermodal service could possibly deliver 64,000 long-haul truck shipments annually. They also emphasized that rail customers will not see a reduction in independent railroad choices as a result of the merger.
CP and KCS hope the Surface Transportation Board will finalize and complete its review of the merger application by the second half of 2022. To learn more, contact a team member today!
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