CPKC Rejects Calls for Rail Consolidation, Warns of Industry Risks

Canadian Pacific Kansas City (CPKC) says it has no interest in participating in further rail industry consolidation, despite calls for the company to consider it. CPKC said it does not believe additional mergers are needed.

“We believe that a transcontinental merger would trigger permanent restructuring of the industry and result in a disproportionately large railway whose size and scope would require others to take action,” said Keith Creel, CPKC president and CEO. “This will likely result in an unnecessary wave of railway mergers that today is not the best way to support American businesses nor the public interest, and has the potential to create more issues than it solves.”

CPKC said the existing six major U.S. railways can already provide near-seamless service, citing its alliances with CSX in the Southeast U.S. and a recent BNSF-CSX partnership as examples of cooperation without consolidation.

Read more in an article from Inside Logistics.