Canadian Pacific, Kansas City Southern make it official
Company breaks ground on new yard office, announces over $275 million infrastructure investment
By Krissa Welshans
Canadian Pacific (CP) and Kansas City Southern (KCS) today combined to create Canadian Pacific Kansas City (CPKC), as authorized by the U.S. Surface Transportation Board’s (STB) March 15 final decision, creating the first single-line railway connecting Canada, the U.S., and Mexico.
“Today, we celebrate this historic combination creating a truly unique single-line rail network that begins a new chapter of railroad history in North America,” said CPKC President and Chief Executive Officer Keith Creel. “As we mark this once-in-a-lifetime occasion by driving the final spike in Kansas City, Missouri, where CP and KCS come together, we stand ready to bring new competition into the North American rail industry at a time when our supply chains have never needed it more."
Creel said the “unmatched” CPKC network will give customers new options and expanded reach to more markets. “The public, environmental, competitive, and safety benefits of this historic combination are extraordinary for our railroaders, communities, rail customers and the North American economy.”
In Kansas City today, the company will mark the creation of CPKC by hosting a celebration featuring the driving of the ceremonial final spike at the only place where the CP and KCS railroads meet. CPKC will also break ground today on a new yard office, the future location of its state-of-the-art U.S. operations center.
“We stand ready to move the commerce of today and ready to compete hard to grow tomorrow,” Creel continued. “With the most relevant railroad network on the continent, we’ll create value for all stakeholders, bringing new jobs, economic growth, and environmental benefits to workers, customers, and communities.”
With its global headquarters in Calgary, Alta., Canada, CPKC is the only railway connecting North America and has unrivaled port access on coasts around the continent, from Vancouver to Atlantic Canada to the Gulf of Mexico toLázaro Cárdenas on Mexico’s Pacific coast. While remaining the smallest of six U.S. Class 1 railroads by revenue, the new combined company has a much larger and more competitive network, operating approximately 20,000 miles of rail, and employing close to 20,000 people. Full integration of CP and KCS is expected to take place over the next three years.
The company said it also plans capital investments in new infrastructure of more than $275 million over the next three years to improve rail safety and the capacity of the core north-south CPKC main line between the U.S. Upper Midwest and Louisiana. It will also support the expansion of Amtrak and other passenger services on the CPKC network.
CPKC filed articles of amendment changing the company's name to "Canadian Pacific Kansas City Limited", which became effective today. CPKC's common shares will remain listed on the Toronto Stock Exchange (TSX) and New York Stock Exchange (NYSE) under the ticker symbol "CP" and are expected to begin trading under the new name and new CUSIP (13646K108) on April 18. Each existing share certificate reflecting the former name of the company will continue to represent a valid certificate until such certificate is transferred, re-registered or otherwise exchanged.
