On March 21st, Canadian Pacific Railway (CP) announced that they have entered into an agreement to merge with Kansas City Southern Railway (KCS). When finalized, the result will be the first rail network connecting Canada, the U.S. and Mexico. The proposed new name for the company is Canadian Pacific Kansas City, or CPKC.
The global headquarters of CPKC would be in Calgary, a city in Alberta, Canada which is home to CP’s current HQ location. The new U.S. headquarters would be in KCS’s current HQ, Kansas City, Missouri. In Mexico, the company would maintain its current Mexico City and Monterrey headquarter offices.
NEW NORTH-TO-SOUTH SERVICES
Because the two historic railroads do not directly compete in any location, nor do their networks overlap, the merger could provide enhanced transportation options to shippers such as new single-line rail services where they do not exist as of today.
Transit times may also be improved, especially for North-South customers who could avoid the Chicago area, which can be congested, by using CP’s network in Iowa. A new intermodal service linking Dallas and Chicago is yet another possible benefit that the merger could provide to customers.
The Surface Transportation Board is reviewing the details of the merger and estimates that their process will be finalized by the middle of 2022.
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