On Wednesday, Canadian Pacific (CP) and Kansas City Southern (KCS) announced the U.S. Surface Transportation Board (STB) had approved their joint merger application.
Although the railways said it is a step toward safer rail that will create a pipeline throughout North America, opponents said it will have detrimental impacts on Chicago area residents and businesses.
The STB’s approval clears the way for the two railroads to form the new Canadian Pacific Kansas City (CPKC), the first single-line railway connecting Canada, the United States, and Mexico. According to the application, CP will exercise control over KCS as early as April 14, 2023, when the two companies combine to create CPKC. CP said it will announce further plans after it finishes reviewing the 212-page decision.
“As the STB found, it will stimulate new competition, create jobs, lead to new investment in our rail network, and drive economic growth,” CP President and Chief Executive Officer Keith Creel said. “These benefits are unparalleled for our employees, rail customers, communities, and the North American economy at a time when the supply chains of these three great nations have never needed it more. A combined CPKC will connect North America through a unique rail network able to enhance competition, provide improved reliable rail service, take trucks off public roads, and improve rail safety by expanding CP’s industry-leading safety practices.”