Although there still remain many details to be revealed, the FMA is cautiously optimistic that the announcement of the merger between Canadian Pacific and Kansas City Southern will benefit Canadian shippers, especially in light of the new Canada-US-Mexico Trade Agreement (CUSMA).
While many past mergers in the rail industry have been problematic, as they have generally reduced competition on many routes, this merger, similar to CN’s rail acquisitions (Illinois Central, BC Rail, Wisconsin Central), is an end-to-end merger, joining two rail systems with no overlap of operational territory or customers.
Efficient, transcontinental rail service benefits FMA’s member companies. We look forward to hearing more from both Canadian Pacific and Kansas City Southern as more specific details on how the combined operation will affect service and competition, which remains a priority to the FMA.
The FMA has been representing the freight transportation interests of Canadian industry since 1916. Our 60+ members include companies, both large and small, from most industrial sectors and from all across the country.
The FMA member companies contribute approximately $70 billion annually to the Canadian economy and purchase approximately $2 billion in freight services by truck, rail, marine, courier and airfreight.
John Corey, President
Freight Management Association of Canada