CN Aims to Create New, Competitive Speedway for Customers in Filing with Surface Transportation Board on the Proposed CP-KCS Merger
CN has filed a response with the Surface Transportation Board regarding the CP-KCS merger, seeking the divestiture of the KCS line to enhance competition. This move aims to create new shipping options across a vital North American corridor, particularly benefiting communities and local businesses. CN plans to invest in the Kansas City Speedway, which will reduce roadway congestion and create jobs. Over 70 letters supporting this initiative have been submitted, emphasizing its potential economic benefits.
- Requesting divestiture of KCS line aims to increase competition in shipping.
- Investment in Kansas City Speedway expected to create jobs and reduce truck traffic by 80,000 annually.
- Over 70 letters of support received from local communities and politicians highlighting potential economic benefits.
- None.
Divestiture of the KCS line to CN would increase competition by enhancing shipping options for many local businesses, while solving CP-KCS’s parallel track conflict and preventing an important freight corridor from declining due to a lack of investment by CP-KCS
CN will invest in the Kansas City Speedway, which will benefit customers and communities, create union and management jobs, and produce substantial environmental benefits by taking 80,000 trucks off the road annually
MONTREAL, March 01, 2022 (GLOBE NEWSWIRE) -- CN (TSX: CNR, NYSE: CNI) yesterday filed a responsive application with the Surface Transportation Board (“STB”) requesting specific conditions related to the approval of the pending Canadian Pacific (“CP”) and Kansas City Southern (“KCS”) merger (collectively “CP-KCS”).
CN’s responsive application asks the STB to condition any approval of a CP-KCS merger on the divestiture of the KCS line from Kansas City, Missouri to Springfield and East St. Louis, Illinois (“the Kansas City Speedway”) to CN, pursuant to the STB’s statutory authority to order “the divestiture of parallel tracks” as a merger condition. Granting CN control of the line will provide customers with a new competitive option to move goods across a key North American economic corridor.
“Under the right ownership, we believe there is a clear opportunity to bring widespread economic benefits for customers and communities across the American Midwest and Canada. CN has a comprehensive plan for the Kansas City Speedway that will increase competition, create jobs, reduce roadway congestion, and positively impact the environment. It reflects CN’s ongoing efforts to ensure competition and choice in our industry and aligns with President Biden’s 2021 executive order on competition.”
- Rob Reilly, Executive Vice President & Chief Operating Officer
CN’s creation of the Kansas City Speedway will ensure that customers – particularly automotive and intermodal – have greater competitive shipping options between Eastern Canada, Detroit, Chicago and Kansas City. This pro-competitive solution to the proposed merger will enable local economies to thrive. Communities and customers recognize the benefit of CN’s creation of the Kansas City Speedway. Over 70 letters of support have been filed with the STB, including letters from the city of East St. Louis and Congressman Frank Mrvan (IN-01).
About CN
CN is a world-class transportation leader and trade-enabler. Essential to the economy, to the customers, and to the communities it serves, CN safely transports more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year. As the only railroad connecting Canada’s Eastern and Western coasts with the U.S. South through a 19,500-mile rail network, CN and its affiliates have been contributing to community prosperity and sustainable trade since 1919. CN is committed to programs supporting social responsibility and environmental stewardship.
Forward-Looking Statements
Certain statements included in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. By their nature, forward-looking statements involve risks, uncertainties and assumptions. The Company cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as “believes,” “expects,” “anticipates,” “assumes,” “outlook,” “plans,” “targets,” or other similar words.
Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors which may cause the actual results or performance of the Company to be materially different from the outlook or any future results or performance implied by such statements. Reference should be made to Management’s Discussion and Analysis in CN’s annual and interim reports, Annual Information Form and Form 40-F, filed with Canadian and U.S. securities regulators and available on CN’s website, for a description of major risk factors.
Contacts:
| Media Canada Jonathan Abecassis CN Media Relations & Public Affairs (438) 455-3692 Jonathan.Abecassis@cn.ca Longview Communications & Public Affairs Martin Cej (403) 512-5730 mcej@longviewcomms.ca United States Brunswick Group Michael France / Andrew Spinelli (917) 676-5802 / (312) 468-5802 mfrance@brunswickgroup.com aspinelli@brunswickgroup.com | Investment Community Paul Butcher Vice-President Investor Relations (514) 399-0052 investor.relations@cn.ca |
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