Canadian Pacific Kansas City ‘not interested’ in rail industry consolidation

Canadian Pacific Kansas City (CP) said that the company is not interested in participating in immediate rail industry consolidation, despite the suggestions by some that it take part. CPKC does not believe that further rail consolidation is necessary for the industry as currently structured. The company remains focused on delivering more of the benefits and unique value-creating opportunities of its three-nation network, which connects shippers in all parts of North America via effective interline service options. CPKC strongly feels, given what the existing competitive landscape has shown it can deliver, any major rail merger poses unique and unprecedented risks to customers, rail employees and the broader supply chain. Those risks would be exacerbated by the inevitable follow-on consolidation. “We believe that a transcontinental merger would trigger permanent restructuring of the industry and result in a disproportionately large railway whose size and scope would require others to take action,” said Keith Creel, CPKC President and CEO. “This will likely result in an unnecessary wave of railway mergers that today is not the best way to support American businesses nor the public interest, and has the potential to create more issues than it solves.”