AmericasPorts and Logistics

North American rail merger creates links from Mexico to Canada

Canadian Pacific has finally won its battle to take over Kansas City Southern in a $31bn deal that will create the first Mexico-US-Canada rail network.

While remaining the smallest of six US Class 1 railroads by revenue, the combined company will have a much larger network, operating approximately 20,000 miles of rail.

“Our path to this historic agreement only reinforces our conviction in this once-in-a-lifetime partnership,” said CP president and CEO Keith Creel. “We are excited to get to work bringing these two railroads together. By combining, we will unlock the full potential of our networks and our people while providing industry-best service for our customers.

The new single-line provides options for domestic intermodal shipments between Mexico, the US Midwest, and Canada, providing what it claims is a truck competitive product for time-sensitive shipments in the high-value parts, perishables, and expedited markets. The rail merger also offers access to Atlantic, Gulf, and Pacific ports.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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