The platform will help improve supply chain visibility for shippers, KCS said.
Expanding intermodal, grain and automotive offerings would be part of the growth strategy pursued by a merged Kansas City Southern-Canadian Pacific.
Kansas City Southern returns to its old flame and opts to merge with Canadian Pacific. Rival railway CN acknowledges its merger plans have been scrapped.
Kansas City Southern is returning to its original merger partner after federal regulators rejected CN’s proposed voting trust, which would’ve been used to acquire KCS.
CP is offering a stock-and-cash “superior proposal” worth an estimated US$31 billion.
Despite headwinds, KCS thinks it can still achieve double-digit revenue growth for 2021.
The $700 million fee to terminate a merger agreement with Canadian Pacific dented KCS’ second-quarter net income. But revenues were up 37% year-over-year.
The American Chemistry Council, which represents chemicals shippers, wants the Surface Transportation Board to scrutinize proposed Class I rail mergers to ensure that shippers don’t encounter reduced offerings.
To sweeten the voting trust application before regulators, CN and Kansas City Southern are offering to divest 70 miles of a KCS line in an area of Louisiana where both railroads have competing lines in order to create an “end-to-end” network.
Kansas City Southern has opted for CN’s merger offer. It is terminating an existing merger agreement it has with Canadian Pacific.
