Canadian Pacific to Buy Kansas City Southern

[Scottl]

The Cupcake Line has a ring to it 

[Philip H]

Ew.  BNSF is bad enough, but CPKC (cupcake?).

DFF

Atleast you can get a nickname out of that.  CSX said phonetically sounds like you are either sneezing or cussing in Russian.

[GaryHinshaw]

Acadian Central. 

[wazzou]

Mexi-Can

[kscessandriver]

Personally, as much as I enjoy modelling KCS, I know it's time was coming to an end. I think it'll go thru, with the combined company probably having to give some track up somewhere (Meridian Speedway, maybe an opportunity for G&W to come in). I think Pacific, Kansas City & Southern would have been a fitting name for the company, but that's not up to me.

[muktown128]

Canadian Southern or Canadian Pacific Southern

[Lenny53]

I think it'll go thru, with the combined company probably having to give some track up somewhere (Meridian Speedway, maybe an opportunity for G&W to come in).

Why wouldn't the joint venture be allowed to continue with CP?  CP has no other trackage in the area unlike the situation with CSX / Pan Am Southern.   

[basementcalling]

Damn friendly Canadians are taking over everything. 

Sorry to see KCS, the little class I that could, become a fallen flag.  Liked their paint schemes. But maybe CP will keep em around?

[kscessandriver]

Why wouldn't the joint venture be allowed to continue with CP?  CP has no other trackage in the area unlike the situation with CSX / Pan Am Southern.   

I just picked a non-core portion of the road. I don’t see the STB allowing it to happen without something being given up, either trackage rights to someone, or the company giving up track somewhere

[davefoxx]

You could be right, @kscessandriver, because I'm sure that you know more about KCS than I do.  But, this merger would create more competition in that the area served by CP and KCS are generally direct competition with CN (excluding the route through Texas and into Mexico).

Did anybody notice on a map that this merger would not just be transcontinental across Canada, but the route in Mexico also reaches ports on the Gulf of Mexico and the Pacific Ocean? 

DFF

[Lenny53]

I don’t see the STB allowing it to happen without something being given up, either trackage rights to someone, or the company giving up track somewhere

CP / KCS currently only meet at Kansas City, in what possible area could competition be hurt that would require some concession being made to other roads?

[Jbub]

CP / KCS currently only meet at Kansas City, in what possible area could competition be hurt that would require some concession being made to other roads?

They may look at it being the only railroad to operate in all three countries with a direct route causing direct and indirect competition with the other class 1's.

[Lenny53]

They may look at it being the only railroad to operate in all three countries with a direct route causing direct and indirect competition with the other class 1's.

STB can only look at US operations, they have no jurisdiction outside their domestic border.

[kscessandriver]

CP / KCS currently only meet at Kansas City, in what possible area could competition be hurt that would require some concession being made to other roads?

The fact that ANY consolidation is bad for shippers (and labor for that matter). Every merger has made it harder and harder for companies to ship by rail. Every class 1 will complain to the STB about this, without a doubt. I just would be shocked if they allow the merger to happen, without KCS/CP giving up something, or being forced to give trackage rights to another carrier.

The only winner in mergers, is Wall Street.

[Lenny53]

Every merger has made it harder and harder for companies to ship by rail.

Can you give one example of this merger making it harder for a company to ship by rail when the 2 roads only meet a one single point, I can not think of any.