Earlier this week, CP Railway announced its intention to merge with Kansas City Southern (KCS), creating a new Class I Railroad (CPKC). This potential merger would be the first major railroad merger since the 1990s.
Despite the announcement, and all the buzz surrounding the potential merger, such a deal would still have to be approved by the Surface Transportation Board (STB), an independent federal agency responsible for economic regulation of freight railroads. The approval process, which begins with the filing of the formal application to the STB, can take up to sixteen months.
While big news like this potential merger deserves attention and scrutiny, we remind our members not to speculate too much into what could change at this time. While many rumors will start flying through the railroad 'grapevine,' don't allow yourself to get too caught up in what, for now, would just be gossip. As we learn more information during the STB approval process, or learn information from CP or KCS themselves regarding proposed changes or realignments, we will keep our members informed as soon as possible.
As always, if you have questions or concerns, please reach out to your System officers or the System office. Below are also some websites and articles which may help inform interested members.
March 23rd Statement from STB Board Chairman regarding merger
Reuters News Agency article - March 21, 2021
Railway Age - March 24, 2021
Bloomberg News - March 23, 2021
CP-KCS joint website regarding merger