On Wednesday, Canadian Pacific (CP) and Kansas City Southern (KCS) announced the U.S. Surface Transportation Board (STB) had approved their joint merger application.
Although the railways said it is a step toward safer rail that will create a pipeline throughout North America, opponents said it will have detrimental impacts on Chicago area residents and businesses.
The STB’s approval clears the way for the two railroads to form the new Canadian Pacific Kansas City (CPKC), the first single-line railway connecting Canada, the United States, and Mexico. According to the application, CP will exercise control over KCS as early as April 14, 2023, when the two companies combine to create CPKC. CP said it will announce further plans after it finishes reviewing the 212-page decision.
“As the STB found, it will stimulate new competition, create jobs, lead to new investment in our rail network, and drive economic growth,” CP President and Chief Executive Officer Keith Creel said. “These benefits are unparalleled for our employees, rail customers, communities, and the North American economy at a time when the supply chains of these three great nations have never needed it more. A combined CPKC will connect North America through a unique rail network able to enhance competition, provide improved reliable rail service, take trucks off public roads, and improve rail safety by expanding CP’s industry-leading safety practices.”
The decision was met with disappointment by some members of Congress.
U.S. Sens. Dick Durbin (D-IL) and Tammy Duckworth (D-IL), and U.S. Reps. Raja Krishnamoorthi (D-IL) and Delia Ramirez (D-IL) voiced their disapproval of the STB’s move.
“We are deeply disappointed that the Surface Transportation Board has sided with corporations over our constituents in the Chicago region,” the Congress members said. “As we have repeatedly reminded the STB, the merger will have dramatic impacts on freight traffic in Illinois that will undoubtedly impact the safety, congestion, and livelihood of Illinois communities as well as disrupt Metra’s commuter rail operations that Illinoisans rely on to access jobs, education, and work.”
The Congress members said the merger will require continued oversight by STB, especially in light of the recent train derailments by Norfolk Southern. In letters to the STB, the Congress members questioned the validity of Environmental Impact Statements that relied solely on CP’s information. The Congress members also stressed the need to review the increased hazardous material traffic resulting from the merger.