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Impact of Rail Merger

Merger between CP and Kansas City Southern is being called a rail network for the U.S.-Mexico-Canada Agreement

Photo: Canadian Pacific Railroad
Photo: Canadian Pacific Railroad

The smaller of two major Canadian railways and the smallest of the seven Class 1 U.S. railways are planning to merge and combine their rail networks.

WCIA reports that grain transportation executives in central Illinois are studying the proposal to merge the Canadian Pacific Railway with the Kansas City Southern. The proposal, which needs federal approval, would create a 20,000-mile rail network through Canada, the northern Corn Belt, and down to Gulf states with connections to Mexico City.

But what is the impact on rail transportation of Illinois grain, and particularly the grain basis?

“I don’t think it will affect transportation and the basis in Central Illinois much, it will certainly impact the northern Cornbelt areas, northern Iowa, southern Minnesota, eastern South Dakota as they will now have direct access to the Texas Gulf and to Mexico and to the poultry industry in Eastern Texas,” retired Decatur Grain Transportation Specialist Don Wenneker told WCIA.

Read the full report.

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