Surface Transportation Board Proposes Procedural Schedule in the CP-KCS Merger

Canadian Pacific Railway (CP) and Kansas City Southern Railway (KCS) on Oct. 29 filed a merger application at the Surface Transportation Board (STB).

If STB approved the merger, the new railroad would be called Canadian Pacific Kansas City (CPKC) and would offer the only single-line service connecting Canada to Mexico.

Based on 2017-21 originated carload numbers from STB, CP and KCS are the smallest of the Class I railroads.

With their combined traffic, CPKC would still be the smallest Class I.

However, because there are only seven Class I railroads currently, any merger is significant.

So far in 2021, CP has originated 7.3% of grain carloads and KCS originated 2.7%.

However, KCS represents 18% of received grain carloads so far in 2021, second only to Union Pacific, which reflects KCS’s role as a critical gateway for receiving and delivering railed grain to Mexico.

On Nov. 2, STB proposed a procedural schedule for application review that extends through July of next year.

Comments on the proposed schedule are due Friday (Nov. 12).

If the proposed schedule is unchanged, comments from the public would be due Jan. 27, 2022, and replies would be due March 23, 2022.

This article comes from the U.S. Department of Agriculture's Nov. 11, 2021, Grain Transportation Report.

Related Articles:

Canadian Pacific Reports 4% Growth For Third Quarter on Revenues of $1.94 Billion

NGFA Outlines Policies to Improve Agriculture Supply Chain

Shuttle Loading, Rail Safety: Planning, Training, Communication Key Components