Canadian Pacific and Kansas City Southern today combined to create Canadian Pacific Kansas City (“CPKC”), as authorized by the US Surface Transportation Board’s (“STB”) March 15, 2023 final decision. CP completed its US$31 billion acquisition of KCS on Dec. 14, 2021. With its global headquarters in Calgary, 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 to Lázaro 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, unlocking the benefits of the combination.
CPKC plans capital investments in new infrastructure of more than US$275 million over the next three years to improve rail safety and the capacity of the core north-south CPKC main line between the US Upper Midwest and Louisiana.
Anticipated environmental benefits of CPKC include the avoidance of more than 1.6 million tons of greenhouse gas (GHG) emissions due to the anticipated improved operational efficiency of CPKC versus current operations and another 300,000 tons of GHG emissions with the diversion of 64,000 trucks to rail for a total reduction of 1.9 million tons of GHG emissions over the next five years. Diverting 64,000 long-haul truck shipments to rail annually with new CPKC intermodal services will reduce total truck vehicle miles traveled by almost 2 billion miles over the next two decades, saving US$750 million in highway maintenance costs.
CPKC will also support the expansion of Amtrak and other passenger services on the CPKC network