Railway deal links Mexico-US-Canada

Business headlines have highlighted the successful quest of Keith Creel, CEO, of Canadian Pacific Railway to acquire Kansas City Southern. That deal came to fruition on September 15 in a stock and cash transaction of about USD$31 billion, that promises to compete with trucks bringing produce from Mexico to Canada.  

 

“Our path to this historic agreement only reinforces our conviction in this once-in-a-lifetime partnership,” said CP president and CEO Keith Creel. “We are excited to get to work bringing these two railroads together. By combining, we will unlock the full potential of our networks and our people while providing industry-best service for our customers. This perfect end-to-end combination creates the first U.S.-Mexico-Canada rail network with new single-line offerings that will deliver dramatically expanded market reach for CP and KCS customers, provide new competitive transportation options, and support North American economic growth.” 

 

According to the company’s news release, new single-line competitive options are now available for domestic intermodal shipments between Mexico, the U.S. Midwest, and Canada, providing a truck-competitive product for time-sensitive shipments in the high-value parts, perishables, and expedited markets.

 

CP notes that new single-line routes allow for the efficient flow of agricultural products from CP’s origin-rich franchise to KCS’ destination-rich franchise, generating new optionality for shippers and receivers.

 

Importantly, customers will not experience a reduction in independent railroad choices as a result of the transaction. CP-KCS have committed to keep all existing freight rail gateways open on commercially reasonable terms, while simultaneously competing aggressively to attract traffic via new single-line north-south lanes between Canada, the Upper Midwest and the Gulf Coast, Texas, and Mexico.  

 

 

Source:  Canadian Pacific September 15, 2021 news release

If latest news: 
Check if it is latest news (for "Latest News" page)
Publish date: 
Friday, September 24, 2021

Click to leave a comment

CAPTCHA
For security purposes, please confirm you are not a robot!

RELATED NEWS

Fruit Logistica plans for live show

Fruit Logistica, famed for its exhibitor trade show and programming, is on track for a physical event in Berlin from February 9-11, 2022.

Rule changes for California romaine lettuce arriving in Canada

The Canadian Food Inspection Agency has announced either pre-harvest or finished product testing as part of its requirements for accepting California-grown romaine lettuce into Canada between September 30 and December 31, 2021. 

PMA cancels Fresh Summit due to Hurricane Ida

The Produce Marketing Association has cancelled the in-person event in New Orleans, Louisiana that was scheduled for October 28-30. The city is still reeling from the impacts of Hurricane Ida and now remnants of tropical storm Nicholas.  

U.S. Apple outlook predicts more than 11 billion pounds

U.S. Apple is predicting that the 2021-22 crop year will exceed 11.1 billion pounds or 265.4 million bushels. That’s up from a year ago, but 1.3 per cent less than the five-year production average. The Red Delicious apple variety is produced in the largest volume. 

USITC releases investigation results on raspberries

The U.S. International Trade Commission has ruled that Mexican raspberries are not a trade threat to the Washington state processed raspberry market. Neither is Canada’s small raspberry sector, concentrated near Abbotsford, British Columbia. The final report contains a chapter of insightful statistical analysis of fresh and frozen markets in Canada.