CP Applauds Agreement to Extend Kansas City Southern de México’s Concession Exclusivity Until 2037
Canadian Pacific Railway Limited (“CP”) today applauded the announcement by Kansas City Southern (“KCS”) and its affiliate Kansas City Southern de México, S.A. de C.V. (“KCSM”) of an agreement extending the concession exclusivity rights granted to KCSM for an additional 10 years.
KCSM reached an agreement with the Mexican Ministry of Infrastructure, Communications and Transportation (“SICT”) to fund a new investment in the Celaya-NBA Line Railway Bypass and other infrastructure.
As part of the agreement, the SICT has authorized the amendment of KCSM’s Concession Title effective July 14, 2022, to extend the exclusivity rights granted to KCSM for an additional period of 10 years.
Under this amendment, KCSM’s exclusivity will now expire in 2037.
CP completed its acquisition of KCS on Dec. 14, 2021. Immediately upon the closing of the acquisition, the shares of KCS were placed into a voting trust which ensures KCS will operate independently of CP while the U.S. Surface Transportation Board (“STB”) completes its regulatory review of the companies’ joint railroad control application to create Canadian Pacific Kansas City (“CPKC”), the only single-line railroad linking the United States, Mexico and Canada.
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Source: Canadian Pacific Railway Limited