North America’s freight rail customers, from grain shippers to logistics companies, are pushing for Canadian Pacific Railway Ltd. to win a bidding war for Kansas City Southern over rival Canadian National Railway, eyeing stronger competition and swifter service, reports Reuters.
CP says that 416 rail shippers have written to the U.S. Surface Transportation Board (STB) in support. As of Friday, the STB had posted at least 135 letters regarding CP’s bid, many of them supporting it and others urging full scrutiny of any merger with KCS.
Germany-based potash producer K+S AG, which has a Saskatchewan mine that CP services, wrote that it supports CP’s bid and opposes CN’s offer because it would reduce competition.
Other CP supporters include marine terminal operator DP World, shipping and container company Hapag-Lloyd, Canadian grain handler Richardson International and oil refiner Valero Energy Corp.
CP on Saturday welcomed the U.S. regulator upholding a waiver that exempts KCS from the same scrutiny larger railroads face during proposed mergers, Reuters reports.
Cargill and industry groups for chemical producers, corn refiners, and a trade group that promotes U.S. wheat exports had opposed use of the waiver, saying that a takeover of KCS is big enough to warrant full scrutiny.
