Grainswest - Fall 2021

Fall 2021 grainswest.com 37 largest railway merger in North American history, with the creation of a corporate rail network that stretches 30,900 kilometres across Canada, Mexico and the U.S. In a CP press release, president and CEO Keith Creel called the deal a “once-in-a-lifetime partnership,” and KCS president and CEO Patrick J. Ottensmeyer said it will allow KCS to be part of “a growing and truly North American continental enterprise.” Once the STB approves the deal, Creel will become CEO of the combined company, which will be named Canadian Pacific Kansas City, and referred to by the acronym CPKC. Its global headquarters will be located in Calgary, while its U.S. head office will be in Kansas City, Miss. Dual Mexican head offices will be located in Mexico City and Monterrey. The CP statement noted the combined rail company will offer “new single-line routes allowing the efficient flow of agricultural products from CP’s origin-rich franchise to [KCS’s] destination- rich franchise, generating new optionality for shippers and receivers.” In other words, the line will improve the marketing possibilities for Canadian farm products. “Overall, CP’s successful bid shouldn’t change anything significantly compared to a CN victory,” said Hemmes. “Historically though, CP has had a larger share of the cereal traffic destined for the U.S., and this should bolster that position.” As CP basks in its victory, it appears Canadian agriculture has likewise won out. Farmers hope this soon-to-be-done deal is also the gift that keeps on giving. “For the farmers who grow the grains, and the consumers of the U.S. and Mexico who rely on a steady supply from Canada, who holds KCS at the end of the day is irrelevant,” said Backman. “The next challenge is to implement the merger without disruption. What is important now is that the rail dependent trade, including both grains and other goods, must continue to flow.” The bulk of Prairie grain is expected to continue to be transported by rail to the Port of Vancouver. Pictured here is the Paterson Grain Foothills Terminal in Bowden.