Newly Formed CPKC plans US$275 million Infrastructure Investment in Next Three Years

Canadian Pacific and Kansas City Southern have officially combined to form Canadian Pacific Kansas City (CPKC), the only railway connecting North America and offering unrivaled port access on coasts around the continent. The acquisition, completed on December 14, 2021, resulted in the new combined company operating approximately 20,000 miles of rail and employing close to 20,000 people. CPKC plans to invest over US$275 million in new infrastructure over the next three years to improve rail safety and capacity. The full integration of CP and KCS is expected to take place over the next three years, unlocking the benefits of the combination.

The merger is expected to bring environmental benefits by reducing greenhouse gas emissions due to the anticipated improved operational efficiency of CPKC versus current operations and the diversion of 64,000 trucks to rail, reducing a total of 1.9 million tons of GHG emissions over the next five years. Furthermore, the diversion of 64,000 long-haul truck shipments to rail annually with new CPKC intermodal services will reduce total truck vehicle miles traveled by almost 2 billion miles over the next two decades, saving US$750 million in highway maintenance costs. Additionally, CPKC plans to support the expansion of Amtrak and other passenger services on the CPKC network.

Sources:
1. CPKC is official, Shipping Matters, Apr 14, 2023. Accessed Apr 17, 2023.