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3/6/2023
The Surface Transportation Board has approved the appointment of former Federal Railroad Administrator Ronald Batory as trustee of the Canadian Pacific-Kansas City Southern voting trust, CP announced March 4.
The STB was asked to approve Batory’s appointment following the recent death of David Starling, the former KCS president and CEO who had been serving as the trustee. Batory is serving as the voting trustee until CP exercises control of KCS with the authorization of the STB. While the voting trust is in place, CP and KCS continue to operate as separate companies.
Batory has more than 45 years of experience in the railroad industry, including time as president of the Belt Railway of Chicago and president and chief operating officer of Conrail. From 2018 to 2021, Batory served as FRA administrator.
Meanwhile, U.S. Sen. Elizabeth Warren (D-Mass.) has asked the STB to reject the proposed CP-KCS merger. In a March 2 letter to STB Chairman Martin Oberman, Warren said the merger would reduce competition "in an already highly consolidated market," and could cause increased shipping costs, job losses and service disruptions that would affect U.S. supply chains.
Warren also cited the impact that further consolidation could have on rail safety.
"The recent East Palestine, Ohio, train derailment raised significant questions about the nations’ railroad safety, and the extent to which safety concerns have been exacerbated by government deregulation, industry cost-cutting and efforts to squeeze as much productivity out of these workers as they can — with one former Iowa mayor warns that the merger could ultimately result in 'a disaster of monumental proportions,'" Warren wrote.