Canadian Pacific on Friday laid out its leadership roster as the railway becomes a merged company with Kansas City Southern in mid-April. Changes include the transition of current KCS President and CEO Pat Ottensmeyer into an advisory role through the end of 2023.
CP (NYSE: CP) will see the merged companies form Canadian Pacific Kansas City (CPKC) on April 14. The Surface Transportation Board’s approval of the merger Wednesday paved the way toward this transition.
The plans CP announced include the following tentative leadership structure for the merged company, subject to board approval:
- Nadeem Velani, executive vice president and chief financial officer (retains role at CP).
- John Brooks, executive vice president and chief marketing officer (retains role at CP).
- Mark Redd, executive vice president and COO (retains role at CP).
- John Orr, executive vice president and chief transformation officer (currently COO at KCS).
- James Clements, executive vice president of strategic planning and technology (retains role at CP).
- Jeff Ellis, executive vice president, chief legal officer and corporate secretary (retains roles at CP).
- Warren Erdman, executive advisor of strategic projects (currently executive vice president administration and corporate affairs at KCS).
- Laird Pitz, senior vice president and chief risk officer (retains role at CP).
- Mike Foran, senior vice president of network and capacity management (retains role at CP).
- Chad Rolstad, vice president of human resources and chief culture officer (retains role at CP).
- Oscar Augusto Del Cueto Cuevas, Kansas City Southern de Mexico president, general manager and executive representative (currently holds this role at KCS).
Current CP President and CEO Keith Creel will remain at the helm, while Ottensmeyer will serve as an adviser to Creel through 2023 to ensure continuity, particularly as it pertains to KCS’ operations in Mexico.
“Our senior leadership team is eager to come together to write the next chapter of railroad history in North America,” Creel said in a Friday news release. “This experienced team will guide our work on a seamless integration for our customers, our employees and the North American supply chain.”
The merged company will be headquartered in Calgary, Alberta, and boast a combined network of 20,000 miles and employee head count near 20,000. However, it will remain the smallest Class I railroad in North America.
CP said in January’s earnings call that it had been conducting test runs to and from the Midwest and Mexico on an interline basis, testing northbound lanes for service-sensitive products to markets in the Upper Midwest and into Canada.
The Canadian railway has indicated repeatedly the merged company would offer single-line service between Canada, the U.S. and Mexico. It plans to make more than $275 million in capital investments over the next three years to improve rail safety and capacity on the main line between Louisiana and the Upper Midwest.
CP also said Tuesday it would support the expansion of Amtrak and passenger rail services on its network.
“Our new combined railroad will create a truly unique single-line network connecting three nations and instantly injecting new competition into the North American rail industry when our supply chains have never needed it more,” Creel said.
The railroads will continue to operate independently until CP exercises control of KCS and the voting trust for the merger is dissolved, according to CP. CP had acquired KCS in December 2021 for $31 billion.
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