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Karweik: Railroad merger

Karweik: Railroad merger

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In March, Canadian Pacific (CP) announced plans to combine its network with Kansas City Southern (KCS). A merger between CP and KCS will provide southeastern Wisconsin quicker and more efficient routes to transport products and create the first United States, Mexico, and Canada railroad network. Even once their networks combine, CP and KCS will remain the smallest of the Class 1 railroads, increasing competition between the major rail networks which would benefit Wisconsin businesses and shippers both in price and efficiency.

However, an opposing railroad made its own bid for KCS following the initial announcement from CP and KCS. Canadian National (CN), made its own offer to purchase KCS. A CN-KCS merger would lead to further consolidation due to significant overlap of their routes, eliminating competition. While its network would also connect the United States, Canada, and Mexico, it would be the third-largest Class 1 railroad. This proposed merger will decrease competition that consumers rely on and is at the heart of CP and KCS’s merger plan.

The CP-KCS merger would create a combined railway that actually expands options for small and large shippers in our area while also reducing the likelihood of consolidation down the road. I support the CP-KCS merger, and hope KCS reconsiders its initial agreement. A CP-KCS merger is best for public interest.

Jordan Karweik, Waterford


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