Jump to content

Canadian Pacific Kansas City

From Wikipedia, the free encyclopedia

This is an old revision of this page, as edited by RickyCourtney (talk | contribs) at 19:42, 21 April 2023 (→History: Add deal). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Canadian Pacific Kansas City Limited
Map showing two former Class I railroads combined, CP and KCS, which is now CPKC
CPKC system map, showing CP tracks in red and KCS in black. Does not include trackage rights.
Overview
HeadquartersCalgary, Alberta, Canada
LocaleCanada, Mexico and United States
Dates of operationApril 14, 2023 (2023-04-14)–present
Predecessor
Technical
Track gauge1,435 mm (4 ft 8+1⁄2 in) standard gauge
Length32,000 km (20,000 mi)
Other
Websitecpkcr.com

Canadian Pacific Kansas City Limited, doing business as CPKC, is a Class I railroad in North America that resulted from the merger of Canadian Pacific Railway (CP) and Kansas City Southern (KCS) on April 14, 2023. It is the first and only single-line railway connecting Canada, Mexico, and the United States, operating approximately 32,000 kilometres (20,000 mi) of rail across the three countries. CPKC is headquartered in Calgary and led by Keith Creel as President and CEO.

History

The Canadian Pacific Railway announced it intended to purchase the Kansas City Southern Railway in 2021, and participated in a bidding war with the Canadian National Railway before emerging victorious in December 2021. KCS's shares were held in a voting trust while the Surface Transportation Board (STB) reviewed the deal, so KCS would continue to operate independently.[1] Final approval of the deal was granted on March 15, 2023, and the merger was completed on April 14, 2023.[1][2]

The CPKC shield, featuring a beaver and maple leaf, both national symbols of Canada. The initials of the three preceding railroads are also visible.

The merger was announced on March 21, 2021, as a friendly stock-and-cash transaction valued at US$29 billion, including the assumption of US$3.8 billion of KCS debt. The merger was supported by both companies' boards of directors, shareholders and customers, as well as by various labor unions, trade associations and political leaders in Canada, the U.S. and Mexico.

The merger was subject to regulatory approval by the STB, which reviewed the transaction under a waiver granted to KCS in 2001 that exempted it from the more stringent rules adopted by the STB in 2001 for major rail mergers. The STB granted its final approval on March 15, 2023, after finding that the merger would be consistent with the public interest and would not substantially lessen competition or create a monopoly or restraint of trade. The STB also imposed several conditions on the merger, such as requiring CPKC to maintain its pre-merger interchange commitments with other railroads, to establish an independent voting trust to hold KCS's shares until the completion of the merger, and to submit regular reports on its operations and performance.

The merger created the first and only single-line railway connecting Canada, the U.S. and Mexico with an approximately 32,000-kilometre (20,000 mi) network.[3] Fully integrating the two railroads is expected to take up to three years.[3]

The company announced on April 21, 2023, that it had landed its first major contract, handling Schneider National intermodal traffic between the U.S. and Mexico. The announcement was seen as backing up pre-merger projections that CPKC’s single-line service would enable it to compete in the Chicago–Mexico corridor that had been dominated by Union Pacific and BNSF Railway.[4]

Operations

CPKC operates approximately 32,000 kilometres (20,000 mi) of rail across Canada, Mexico and the United States.[3] As of April 2023, CPKC has around 20,000 employees.[3] CPKC has its global headquarters in Calgary with its U.S headquarters in Kansas City, Missouri and its Mexico headquarters in Mexico City and Monterrey.[5]

Company executives said that merging CP and KCS would be "straightforward" because the railroads only touch at Kansas City and interchange volumes were relatively low, about four trains per day as of September 2021. They also cited that the two companies largely used the same back-office information technology systems.[6]

The railroad connects some of the largest metropolitan areas in North America: Toronto, Montreal, Chicago, Houston, Dallas–Fort Worth and Mexico City. The CPKC Railway also connects key industrial centers such as Detroit, Kansas City, Minneapolis–Saint Paul and Calgary; major agricultural regions such as Saskatchewan, Iowa and Louisiana; major energy hubs such as Alberta, North Dakota and Texas; major ports such as Vancouver, Prince Rupert, Montreal, New Orleans, Mobile, Lazaro Cardenas and Veracruz; and major intermodal terminals such as Chicago, Kansas City, Memphis and Monterrey. CPKC operates a diverse mix of freight traffic that includes grain, coal, potash, fertilizers, crude oil, refined products, chemicals, plastics, metals, minerals, forest products, automotive products, consumer goods and intermodal containers.[citation needed]

CPKC is organized into four business units: Canadian Operations, U.S. Operations, Mexico Operations and Intermodal Operations. CPKC also has a Strategic Planning & Technology business unit that oversees initiatives for the entire company.[citation needed]

References

  1. ^ a b Reynolds, Christopher (April 14, 2023). "CP Rail, Kansas City Southern merger clears path for more cargo, but hitches remain". CBC. Retrieved April 18, 2023.
  2. ^ Chokshi, Niraj; Walker, Mark (March 15, 2023). "U.S. Approves $31 Billion Merger of Two Big Railroads". The New York Times. ISSN 0362-4331. Retrieved April 21, 2023.
  3. ^ a b c d "CPKC Drives Ceremonial Final Spike, Joining Three Nations". Railway Age. April 17, 2023. Retrieved April 21, 2023.
  4. ^ Stephens, Bill (April 21, 2023). "CPKC to handle Schneider's cross-border intermodal shipments between the Midwest and Mexico". Trains (magazine). Retrieved April 21, 2023.
  5. ^ Hyatt, Kim (March 21, 2021). "Minneapolis no longer Canadian Pacific's U.S. headquarters in $25B deal". Star Tribune. Retrieved April 21, 2023.
  6. ^ Stephens, Bill (September 20, 2021). "CP CEO Keith Creel talks historic KCS merger, CPKC name, operations". Trains (magazine). Retrieved April 21, 2023.
Retrieved from "https://en.wikipedia.org/w/index.php?title=Canadian_Pacific_Kansas_City&oldid=1151081591"