CP, KCS claim widespread support for merger agreement

Canadian Pacific and Kansas City Southern announced yesterday they've received statements from nearly 260 shippers, other railroads, economic development authorities, ports and other supporters for the Class Is' planned merger agreement that would create the first rail network connecting the United States, Mexico and Canada.

Many of the supporters have asked that the Surface Transportation Board (STB) approve the transaction as quickly as possible, CP and KCS officials said in a press release.

Many letters filed with the board stated they expect the combined railroads would invigorate transportation competition, expand access to existing and growing markets and provide new service offerings that would improve transit times and reliability, they said.

Supporters for the agreement include Genesee & Wyoming Inc. and other short lines, Maersk, Hyundai Glovis, Kraft, Nestle, North Dakota Dealers Association, Evergreen, Boise Cascade Wood products Building Materials, Ragasa Industries S.A. and Ag Processing.

Their statements and letters were filed with the STB.

CP and KCS on March 21 announced they've entered a merger agreement in which CP would acquire KCS stock in a cash transaction worth $29 billion, including about $3.8 billion of outstanding KCS debt. Upon STB approval, CP would acquire control of KCS. The new railroad would be called Canadian Pacific Kansas City (CPKC).