CPKC railway merger comes to life

CPKC railway merger comes to life

Canadian Pacific (CP) and Kansas City Southern (KCS) have combined to create Canadian Pacific Kansas City (CPKC), the first and only single-line railway network connecting Canada, the US, and Mexico.

On 14 December 2021, CP finalised its acquisition of KCS for a sum of $31 billion.

The U.S. Surface Transportation Board approved the acquisition in March 2023, marking the final step in creating the new railway network.

READ: Mexican authorities greenlight $31bn Canada Pacific Kansas City Southern merger

CPKC’s President and CEO, Keith Creel, said the new railway network will bring “new competition into the North American rail industry at a time when our supply chains have never needed it more.”

“This unmatched CPKC network will give our customers new options and expanded reach to more markets as we provide reliable rail service, take trucks off public roads and raise the bar on rail safety by expanding CP’s industry-leading safety practices,” Creel added.

“The public, environmental, competitive and safety benefits of this historic combination are extraordinary for our railroaders, communities, rail customers and the North American economy.”

READ: Canadian Pacific strike stunts supply chain

The creation of CPKC is expected to bring significant environmental benefits, including the avoidance of more than 1.6 million tonnes of greenhouse gas (GHG) emissions and the diversion of 64,000 trucks to rail – for a total reduction of 1.9 million tonnes of GHG emissions over the next five years.

The diversion of 64,000 long-haul truck shipments to rail annually with the new CPKC intermodal services will also reduce total truck vehicle miles travelled by almost 2 billion miles over the next two decades, as reported by CPKC, saving $750 million in highway maintenance costs.

CPKC also plans to invest over $275 million in new infrastructure over the next three years to improve rail safety and the capacity of the core north-south CPKC main line between the US Upper Midwest and Louisiana.

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