On April 14th, Canadian Pacific and Kansas City Southern will officially merge to create Canadian Pacific Kansas City (CPKC). This final decision follows approval from the U.S. Surface Transportation Board on March 15, 2023 of CP’s US$31 billion acquisition of KCS on Dec. 14, 2021.
CPKC will become the first and only single-line rail network connecting Canada, the United States, and Mexico. Keith Creel, current CP President and CEO, will become the President and CEO of CPKC. Pat Ottensmeyer, KCS President and CEO, will stay on as an advisor until the end of 2023 to ensure a smooth transition.
There are a few implications for Canadian and US importers:
- CPKC offers alternative ports for bringing intermodal into areas like Chicago and Houston (for example, you can choose between Prince Rupert, Vancouver, Seattle, LA/Long Beach, or Lazaro Cardenas)
- With the potential threat of strikes along the west coast during union contract talks, this connection can potentially provide an alternative solution to mitigate risk
There are a few carriers looking to try CPKC’s new rail network using some trial containers. If you are interested in testing out new routes for transporting your foods, please contact us at firstname.lastname@example.org.
1. Canadian Pacific and Kansas City Southern Combination Approved by U.S. Surface Transportation Board, Future of Freight, Accessed Apr 3, 2023.