CP: KC to St. Louis/Springfield Route will be an Important Part of the CPKC Growth Story
Canadian Pacific Railway Limited today issued the following statement in response to CN’s Notice of Intent to file a Responsive Application asking the STB force a divestiture of KCS’s lines east of Kansas City as part of the Surface Transportation Board’s (“STB”) regulatory review of CP’s proposed combination with Kansas City Southern (“KCS”):
CN’s proposal is built on a series of factual errors or misstatements.
KCS’s Kansas City-Springfield line is not “parallel” to CP’s line between Kansas City and Chicago. KCS’s line does not reach Chicago, and contrary to CN’s misleading statements, KCS’s line is not part of a through route to Chicago in conjunction with CN. In fact, there is no direct connection between KCS and CN today at Springfield, and historic interchange volumes reflect the absence of any actual service here. Only four cars were interchanged by KCS at Springfield with CN in 2020 and 133 cars interchanged with CN in 2019.
As part of CPKC, these lines will grow along with CPKC. CP’s proposed pro-competitive combination with KCS is about growth. A future CPKC will not downgrade any lines, these included. Instead, CPKC will maintain existing levels of service on these lines and will not re-route traffic away from these lines, contrary to CN’s assertions.
In fact, the route from Kansas City to St. Louis and the other assets CN wants the STB to force CP to divest are important parts of the combined CPKC growth story providing new, competitive single-line routes connecting CP’s network with customers and port facilities in St. Louis, and connections to eastern carriers. CP anticipates an increase of traffic on this corridor of 30 percent.
CP will be responding to any formal CN request for conditions in the pending STB proceeding at the appropriate time.
For more information on the benefits of a CP-KCS combination, visit FutureForFreight.com.
About Canadian Pacific
Canadian Pacific (TSX: CP) (NYSE: CP) is a transcontinental railway in Canada and the United States with direct links to major ports on the west and east coasts. CP provides North American customers a competitive rail service with access to key markets in every corner of the globe. CP is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit www.cpr.ca to see the rail advantages of CP. CP-IR
Source: Canadian Pacific Railway Limited