merger

The Canadian Pacific Railway and Kansas City Southern Railway will be joining in a merger. Canadian Pacific completed its acquisition of Kansas City Southern in December of 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. Washington Economic Development Group Executive Director Mary Audia let KCII know how this has already impacted the City of Washington, “WEDG has been helping the city facilitate meetings between the railroad and local authorities. Because of that, the city has been able to negotiate some good dollars coming from the railroad to help with, let’s say, if we want to do a quiet zone study, or if we want to close some crossing and do more of a quiet zone so they aren’t blowing their horn all the way through. So some really good money was injected into the community because of that.” The Surface Transportation Board’s review of Canadian Pacific’s proposed control of Kansas City Southern is expected to be completed in early 2023.