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