Kansas City South
Rail News: Kansas City South
Canadian Pacific and Kansas City Southern jointly filed for rail control with the Surface Transportation Board (STB) over their proposed merger, which would create the only single-line railway connecting the United States, Mexico and Canada. .
The new railroad would be called Canadian Pacific Kansas City (CPKC). The monitoring application provides an overview of the proposed operational integration of the CP and KCS rail networks, the impact of this consolidation on the financial and workforce needs of companies, and the competitive and other advantages expected, CP and KCS officials said on Oct. 29 in a press release.
The information in the dossier describes the public and customer benefits that a CP-KCS combination would bring, including more efficient north-south trade routes to support the interconnected supply chains of the United States, Mexico and the United States. Canada, they said.
The request for joint control reiterates the applicants’ commitment to keep all existing freight rail gateways open on commercially reasonable terms, including the Laredo Gateway between the United States and Mexico, they said. It also shows how customers will not lose competitive routes as no new regulatory “bottlenecks” are created, they said.
It also describes how the combined company will compete aggressively to attract traffic to its network via new single-line routes between Canada, the Upper Midwest and the Gulf Coast, Texas and Mexico.
CP has agreed to acquire KCS in a stock and cash transaction for approximately $ 31 billion, which includes assuming $ 3.8 billion of KCS’s outstanding debt. The proposal values KCS at $ 300 per share.