CPKC Railway

Canadian Pacific Kansas City Limited, known as CPKC, is a Class I railroad in North America, formed from the merger of Canadian Pacific Railway (CP) and Kansas City Southern (KCS) on April 14, 2023. This merger marked a historic milestone, creating the first and only single-line railway that connects Canada, Mexico, and the United States, encompassing a vast network of approximately 32,000 kilometers (20,000 miles) of rail. With headquarters in Calgary, CPKC is led by Keith Creel, serving as its President and CEO.
== Historical Overview ==
The journey toward the creation of CPKC began when Canadian Pacific Railway (CP) announced its intention to acquire Kansas City Southern (KCS) on March 21, 2021, for a sum of US$29 billion. A competing offer emerged from Canadian National Railway (CN) on April 20, 2021, valuing KCS at $33.7 billion. However, CN's merger attempt faced a major setback when the US Surface Transportation Board (STB) ruled in August 2021 that CN could not employ a voting trust to assume control of KCS. Concerns arose regarding potential reductions in competition within the railroad industry.
KCS accepted CP's new offer of $31 billion on September 12, 2021. While CP's bid was lower than CN's, the STB granted CP permission to utilize a voting trust, leading to CP's beneficial ownership of KCS in December 2021. The two railroads continued to operate independently until receiving STB approval for a merger of operations.
The merger faced objections from Union Pacific and BNSF Railway during STB hearings. These objections were related to concerns about the projected increase in traffic by CPKC and its potential impact on UP-owned tracks in the Houston area, where both UP and BNSF operate extensive daily traffic. The STB explored the possibility of KCS applying to UP for trackage rights as a way to mediate the dispute.
Metra and a group of West Chicago communities also voiced opposition to the merger. They argued that the increased traffic would lead to delays in Metra's passenger rail service, negatively impacting the quality of life and economic development in communities along the Milwaukee Line.
Despite the various objections raised during hearings, the STB granted final approval for the merger on March 15, 2023, and the merger was officially completed on April 14, 2023.
=== CPKC's Expansion and Achievements: ===
The merger of CP and KCS gave birth to CPKC, a transcontinental rail giant with a network spanning approximately 32,000 kilometers (20,000 miles). The integration of the two railroads is expected to take up to three years.
CPKC wasted no time in establishing itself as a major player in the rail industry. In April 2023, the company secured its first significant contract, handling Schneider National intermodal traffic between the United States and Mexico. Subsequently, CPKC entered into a similar agreement with Knight-Swift, reinforcing its position in the Chicago–Mexico corridor, traditionally dominated by Union Pacific and BNSF.
CPKC launched its "Mexico Midwest Express (MMX)" service on May 14, 2023, designed primarily for intermodal and automobile transportation. This service offered shorter travel times than existing options, enhancing the company's competitiveness in the market.
In a strategic move, CPKC, in collaboration with CSX Transportation, announced its intent to jointly acquire the Meridian and Bigbee Railroad (MNBR) on June 28, 2023. This acquisition aimed to create a direct connection between the two companies, streamlining the movement of traffic destined for Mexico.
Additionally, CPKC made headlines by securing a naming rights deal for the Kansas City Current's new stadium in Kansas City, Missouri. This ten-year partnership highlighted the company's commitment to supporting women's professional sports.
=== Operations and Structure: ===
CPKC operates an extensive rail network, stretching over 32,000 kilometers (20,000 miles) across Canada, Mexico, and the United States. As of April 2023, the company employs around 20,000 individuals. CPKC maintains its global headquarters in Calgary, with regional headquarters in Kansas City, Missouri, for its U.S. operations, and in Mexico City and Monterrey for its Mexican operations.
Company executives emphasized the simplicity of merging CP and KCS, as their rail lines only intersected in Kansas City, and interchange volumes were relatively low. The compatibility of back-office information technology systems further facilitated the merger process.
CPKC also operates its own police force, known as the Canadian Pacific Kansas City Police, ensuring the security of its extensive rail network.
==External links:==
*Official website
Category:Class I Railroads
Category:Railways
Category:Railroads