CP argues NS would improve with 'precision railroading'

Canadian Pacific yesterday released another in a series of white papers that try to make the case for a proposed takeover of Norfolk Southern Railway.

The white paper details how the "precision railroad philosophy" that CP has applied to elevate its status from "industry laggard to leader" would transform NS to create a leading North American transcontinental railroad, according to a CP press release.

"Politicians, shippers and others are calling for a strong, healthy and high-performing rail system yet no one has the stomach to challenge the status quo," CP Chief Executive Officer E. Hunter Harrison said. "Clearly, moving goods reliably and efficiently is top of mind for everyone in the industry; we believe precision railroading and a CP-NS combination address those challenges."

Over the past four years, precision railroading has enabled CP to reduce its operating ratio, improve service, reinvest record amounts of dollars in its network and create "significant shareholder value," company officials said.

The white paper was released as CP gears up for Norfolk Southern's annual meeting on May 12, at which time CP will ask NS shareholders to vote whether they want their board to engage in merger discussions with CP.

A PDF version of CP's latest white paper can be downloaded at http://www.cpconsolidation.com.