The Canadian Pacific and Kansas City Southern railroads are merging.
The U.S. Surface Transportation Board approved the CP and KCS joint merger applications yesterday. The two railways will combine to form Canadian Pacific Kansas City, the first single-line railway connecting the U.S., Mexico, and Canada.
CP could exercise control of KCS as early as April 14th. CP President and Chief Executive Officer Keith Creel says the merger benefits all involved, stimulating new competition, creating jobs, leading to new investment in rail networks, and driving economic growth.
Patrick J. Ottensmeyer, KCS President and Chief Executive Officer, says they are very proud of the many contributions and achievements of the people who have made KCS what it is today and are excited for the possibilities moving forward into the next chapter as CPKC."
The STB has listed CP as the safest railroad in North America for 17 straight years. The new single-line service will shift approximately 64,000 truckloads annually from North America's roads to rail and will support investment in infrastructure, service quality, and safety. Over 800 new union-represented operating positions will be added in the United States as well.
The new corporation will have headquarters in Calgary, Alberta, Canada, and Kansas City.