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Originally Posted by Redliner
Here is a great article that explains the transaction as well as some of the anticipated advantages and new traffic patterns. No paywall either:
https://www.railwayage.com/freight/c...RAchannel=news
KCS was exempt from the STB merger restrictions that were handed out to the Class 1s after the failed CN/BNSF merger in 1999. That fact, coupled with the KCS system's perfect end-to-end fit with CP's network, leads me to believe that this should have no problem getting approval as it does not decrease competition at all. It will be by far the most major transaction in the railway industry in the last 20 years and is a great move for CP.
As I understand it, no job losses are expected and they anticipate they will actually need to add employees over the longer term. The Calgary office should remain intact, although CP's current US Headquarters in Minneapolis will be moving to Kansas City. It will be interesting to see how things shake out as the two companies consolidate.
The only thing that sucks is the new name. "CPKC" sounds more like a radio station than a railway. It sounds like a complete re-branding will be coming once the merger is complete, and as one of the few remaining "truly Canadian" institutions, it will be sad to see the Canadian Pacific identity disappear. |
I think the formal name will be Canadian Pacific Kansas City Railway.