Trucking

CN, Canada Pacific Strengthen Support for Merger Campaign

Canadian railroad CN (((NYSE: CNI)and Canada Pacific (((NYSE: CP) In front of regulators and the general public, we continue to argue why each is a good company to buy. Southern Kansas City (((NYSE: KSU).

Regulators are accepting public comments on CN’s proposed voting trust. CN and KCS have stated that they are needed to continue the merger process. Surface Transportation Board (STB). They claim that when the board considers the merger, it protects voting confidence from being hijacked in southern Kansas City. STB Taking public comments To trust the vote until Monday.

KCS and CN I agreed Merged in May, KCS Previous plan merges with CP..

Former STB Chief Economist claims to support CN’s voting credibility

WIlliam Huneke, a former director of economics and chief economist at STB, argued that the board should approve the confidence in the vote.

In an editorial in the railroad eraHuneke said the STB should consider CN’s proposal to open a gateway between Mexico, the United States and Canada to promote competition, among other reasons.

“I’m surprised that the open gateway effort hasn’t been paid attention to. This effort has integrated shippers who are currently enjoying competitive joint line routing with either CN or KCS. Even if CN / KCS can handle the entire single move, those routes will continue to be available in the CN / KCS post-integration environment.-Line routing, “Huneke said. “This means continuous competition, and we know that competition promotes lower rates, better services and innovation.”

He continued. “Commitment is not only to maintain physical routing, but also to ensure that routing is commercially reasonable for the shipper. What is” open on commercially reasonable terms “? What do you mean? This means that all market participants, railroads and shippers will benefit. They will have a fair opportunity to compete. They pay, receive, and receive efficient service. If the shipper is not happy with the service, you have the option to switch to another carrier. “

Huneke is a consulting economist who advises Class I railways, including KCS.

CN vie for union support for CN-KCS merger

CN will be on Wednesday for a merger with KCS Boilermaker International Brotherhood (IBB). Railroad describes the IBB as “one of the oldest unions in the United States representing more than 50,000 skilled craftsmen, craftsmen and industrial workers across the United States and Canada.”

“IBB has a direct interest in the proposed competitive promotion CN-KCS combination …. The merged company will be new to customers, labor partners, employees and other stakeholders. We are in a good position to create growth opportunities. CN is working with KCS management to create new jobs, “says CN.

The railroad also said it was supported by three local union committees that belong to: International Association of Sheet Metal, Aviation, Rail and Transport Workers – Transport Sector (SMART-TD).

SMART-TD National Leadership Previously expressed concerns About the proposed CN-KCS merger.

CN said the union committee is in an area of ​​direct interest in the CN-KCS merger.

The letters submitted to the STB are from the Chairs of the SMART-TD Coordinating Committees 377, 433, and 987. According to CN, the Commission collectively represents more than 1,800 conductors of CN’s US subsidiary, including the Grand Trunk Western River Railroad. Railroad, Illinois Central Railroad, Chicago Central & Pacific Railroad, Wisconsin Central.

Canada Pacific Lobby for Support

Meanwhile, the CP said it will submit comments on why the board should not approve the confidence in CN’s vote before the public comment period ends next Monday.

“As previously announced, CPs can have STBs review and implement competitive CP-KCS combinations without delay if the KCS agreement with KCS ends, or if the CN ends. As such, we continue to pursue the application process to obtain KCS, otherwise we will not be able to gain control of KCS, “CP said.

The railroad also said on Monday that more than 80 additional stakeholders had submitted a statement before the STB expressing reservations for the proposed CN-KCS merger. According to CP, it includes people concerned about the loss of transportation options between New Orleans and Baton Rouge, Louisiana.

CN and KCS Said They plan to sell about 70 miles of railroad tracks in Louisiana for direct competition between the two railroads.

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https://www.freightwaves.com/news/cn-canadian-pacific-nail-down-more-support-for-merger-campaigns CN, Canada Pacific Strengthen Support for Merger Campaign

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