Four rail labor groups have banded together to warn regulators about potential post-merger efforts to trim labor costs, while investment banking firm Cowen says regulators’ denial of CN’s voting trust signals that CN will have to make a strong case for its proposed merger.
Canadian Pacific wants Kansas City Southern to reject CN’s competing merger offer. The railway also said it won’t engage in a bidding war.
Following the Surface Transportation Board’s decision on Monday regarding CN’s proposed merger with Kansas City Southern, both CN and Canadian Pacific remained confident that each is the better suitor for KCS.
The Surface Transportation Board has decided that it would review a proposed merger between CN and Kansas City Southern under newer, stricter merger rules. The board also denied for now CN’s request to form a voting trust, saying CN’s application is incomplete.
FreightWaves looks at five themes that ran throughout the earnings discussions of the Class I railroads.
CN revised its bid to acquire KCS; CP said it will not seek to counterbid.
Pioneer Lines, Kansas City Southern and Conrail have appointed new leaders.
Rivals Canadian Pacific and CN separately submit more statements of support to the Surface Transportation Board in a bid to show which Canadian railway is best suited to merge with Kansas City Southern.
The Surface Transportation Board has approved the voting trust that Canadian Pacific and Kansas City Southern plan to make as part of the merger process between the two companies.
CN and Canadian Pacific continue to campaign for the hearts and votes of Kansas City Southern stakeholders and the Surface Transportation Board.
Executives with parent company Berkshire Hathaway expect BNSF to take steps to protect the railroad’s franchise as the merger between Kansas City Southern and one of the Canadian railways makes its way through regulatory review.
CN outlined some scenarios in which a merged railway can compete with long-haul trucking.
The Canadian railway CN and Kansas City Southern have agreed to talk about CN’s acquisition bid. Canadian Pacific, which has a competing offer, acknowledges the meeting. CN also submits letters of support from stakeholders to regulators.
In today’s edition, we highlight a Biden administration thumbs-up to trucking’s role in electric vehicle expansion, an upcoming general strike at the Port of Montreal and more.
The Surface Transportation Board has determined that a waiver that exempted Kansas City Southern from post-2001 merger rules governing rail mergers applies in the proposed merger between KCS and Canadian Pacific.
Rep. Peter DeFazio, D-Oregon, chair of the U.S. House Transportation and Infrastructure Committee, is concerned that efforts by rival Canadian railways to acquire Kansas City Southern could usher in more consolidations in the freight rail sector.
With a Canadian Pacific and Kansas City Southern merger, grain shippers in the Dakotas will have a real single-line option to reach their end markets rather than having to rely solely on UP or BNSF, says former U.S. Sen. Byron Dorgan.
For now, Canadian Pacific is not planning to take part in a bidding war with rival CN to acquire Kansas City Southern, saying that its offer is more likely to meet regulators’ litmus test for mergers.
Canadian Pacific and CN both filed letters to the Surface Transportation Board asking the panel to consider the merits of their competing requests to acquire Kansas City Southern.
CP, which is also seeking to acquire KCS, describes rival CN’s bid to acquire KCS as “massively complex and likely to fail” because it decreases competition.
Tuesday morning there was big news out of the rail industry: Canadian National Railway (CN) made a stronger offer to acquire the Kansas City Southern (KCS) Railway than what Canadian Pacific (CP) and KCS agreed upon. Whether a deal closes, and between which railways, remains uncertain, but in this edition of The Stockout, I discuss […]
A merged CN and Kansas City Southern would compete against long-haul trucking for north-south intermodal opportunities, CN said Tuesday.
Not to be outdone by rival Canadian Pacific, CN offers to acquire Kansas City Southern for $33.7 billion.
Kansas City Southern expects to maintain its financial targets for 2021 on a recovering economy and an anticipated volume rebound. It declined to comment on post-merger operational changes.
Kansas City Southern’s net income for the first quarter of 2021 rose 0.7% despite a 4% decline in revenue and a 1% drop in carload volumes.
The U.S. Department of Justice raised concerns about how Canadian Pacific and Kansas City Southern are using a voting trust to facilitate their proposed merger. The two railroads respond.
Potential service disruptions from the proposed Canadian Pacific-Kansas City Southern merger could be a key issue explored by regulators reviewing the merger, FTR says. The consulting firm also projects favorable market conditions for intermodal rail and carloads in 2021 and into 2022.
Canadian Pacific and Kansas City Southern provided the Surface Transportation Board 75 more letters explaining why their proposed merger should be approved.
Canadian Pacific submitted to the Surface Transportation Board 45 more letters of support from shippers and other stakeholders for the proposed merger of CP and Kansas City Southern.
Two rail shipper coalition groups and four Class I railroads want the Surface Transportation Board to review Canadian Pacific’s proposed acquisition of Kansas City Southern under “new” rules that gauge whether a merger would enhance market competition.
Canadian Pacific has submitted a 531-page filing to the Surface Transportation Board that includes letters from 259 entities supporting the proposed acquisition of Kansas City Southern.
This transaction will benefit the automotive supply and distribution network throughout North America.
Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: KCS expands Mexico rail service to Port of Veracruz; furniture maker leases space in Laredo, PGT Trucking opens new terminals in Arizona and Arkansas; and CBP seizes $1.4 million in drugs in Laredo.
Canadian Pacific wants to acquire Kansas City Southern. Here are five thoughts from Wall Street transportation analysts about the transaction.
STB Chair Marty Oberman shares the board’s views on two proposed acquisitions: CSX’s acquisition of New England short line Pan Am Railways and Canadian Pacific’s merger with Kansas City Southern.
The publicly traded Class I railroads expect rail volumes to improve this year despite severe winter weather curtailing operations in February.
Canadian Pacific and Kansas City Southern executives outline the benefits and the rationale behind CP’s proposed acquisition of KCS.
Canadian railway Canadian Pacific plans to merge with Kansas City Southern in a deal worth $29 billion.
U.S. weekly intermodal volumes moved higher last week amid support from retail and e-commerce, while carloads slumped as some U.S. Gulf Coast facilities seek to fully return to normal following February’s winter storm.
U.S. Class I rail operations are seeking to return to normal, with intermodal terminals opening in the central and western U.S. But the overall network is experiencing delays in multiple locations.
KCS plans to deploy the third phase of its precision scheduled railroading program this year as it eyes an operating ratio goal in the mid-50s by 2022.
KCS’ fourth-quarter 2020 net profit was $165.7 million, compared with $127.2 million in Q4 of 2019.
Kansas City Southern’s new, more stringent emission target will keep the company in line with the Paris Agreement emission goals.
Train lengths, improving network velocity and coronavirus uncertainties are among the big themes expressed by Class I railroad executives at a recent investor conference.
KCS says Mexico protests are impacting fourth-quarter revenue, and Norfolk Southern announces leadership changes.
Railroads are leveraging automation and evaluating assets to improve fuel efficiency. Corporate climate goals are on the rise as railroads increase their conservation and emission-reducing efforts.
Executives are confident about an economic recovery but uncertainty persists over how much volumes will grow in the fourth quarter and into 2021.
Lower operating expenses drove the increase in third-quarter net income.
Although the hurricane isn’t expected to make landfall until later this week, the Class I railroads are preparing now for potential service disruptions.
Railway blockades reportedly are costing the Mexican economy more than $18 million a day.
Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Mexican train blockade costing millions; Toyota and VW expand in Mexico; tire manufacturer opens Houston facility; Xxentria opens border operation; US, Mexico and Canada extend border closures.
Online sales depend heavily on a robust industrial real estate infrastructure.
U.S. intermodal traffic continues upward trend; separately, Kansas City Southern reportedly rejects takeover bid.
CBP’s Virtual Trade Week symposium kicked off Tuesday with a panel on the advantages of United States-Mexico-Canada Agreement.
The Wall Street Journal is reporting that U.S. Class I railroad Kansas City Southern is in play again. Blackstone and Global Infrastructure Partners are reported to have made an offer.
Class I railroad crews will spend the next two days clearing downed trees and restoring electric power along tracks in southern Louisiana.
Logistics aid network seeking assistance from transportation sector.
The campaign is part of a broader effort to prevent the spillage of the tiny pellets during their transport.
Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Mexican auto production breaks out of a slump; Trump approves a new international rail bridge; a Mexican carrier acquires 25 new Scania trucks; and officers seize more than $2.4 million in cash at San Diego ports.
Arbitrators determined that KCS has the ability to use its Mexican crew members instead of its U.S.-based crews on a nine-mile stretch between the U.S. border and the Laredo rail yard.
Jim Blaze explores the state of the major railroads that operate in Mexico – particularly Kansas City Southern, which is rumored to be a takeover target.
A Wall Street Journal article suggested Global Infrastructure Partners and the Blackstone Group’s infrastructure segment are considering acquiring KCS.
The railroad plans to keep operational changes such as reduced train starts and longer trains even as volumes rebound.
The railroad experienced a 23% dip in revenue as carload volumes fell 21%.
With no end in sight to the pandemic in North America, BMWED says railroads should enhance worker safety.
The changes in leadership come as the railroad continues to deploy precision scheduled railroading.
Rail traffic continued to build through June. U.S. intermodal traffic was only off 5% year-over-year in week 26.
Rail traffic continues to increase after bottoming out in April and May.
Company cites sharp, pandemic-induced drop in rail volumes.
Class 1 railroads reiterate that some measures they took to cut costs because of the coronavirus could become permanent.
The investment firm published a research update that analyzed Mexico’s likelihood of changing its rail regulatory structure.
An exclusive interview with Deutsche Bank’s Amit Mehrotra on what COVID-19 means to transport stocks.
Like all industries, the coronavirus has impacted railroads. What should they be doing to gain market share and better serve their customers?
North American railroad leaders believe that the industry is resilient and have reported ongoing demand for rail services.
XPO’s Brad Jacobs says 2020 is most likely a lost year.
The railroad will be keeping tabs on operational costs as a way to hedge against the economic uncertainty brought about by the COVID-19 pandemic.
Cross-border movements of chemicals and petroleum products, as well as intermodal shipments, helped propel revenue higher.
After a surge in freight over the past few weeks, UBS transportation analyst Tom Wadewitz is predicting a rough two months.
The rail industry will try to keep business as usual for as long as possible, according to recent notices to customers.
DMV flexibility, coronavirus testing among requests as potential for supply chain disruption grows.
Economic uncertainties, including the prospect of a coronavirus-induced recession, could spur the railroad to update its 2020 guidance.
Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Walmart opens new distribution center to meet e-commerce demand; border officials lobby for funding of new truck and railway bridges; two Texas seaports receive $39 million for improvements and expansion; Mexican manufacturing association creates coronavirus prevention task force.
USD Partners and Gibson Energy will begin construction of a unit in April that will produce a nonhazardous heavy crude product.
Uncertainty is still an underlying theme facing North American freight railroads.
Atlanta-based Stonemont Financial Group recently launched phase one of its 540-acre Southwest International Gateway Business Park in El Campo, Texas, around 60 miles southwest of Houston. “We have officially closed on the land and completed all of our designs, and we’re in the process of breaking ground as we speak,” Stonemont Financial CEO Zack Markwell […]
Geopolitical tides, e-commerce and technology are today’s “disruptors” in freight transportation, say panelists at Transportation Research Board convention.
Kansas City Southern can attribute its growth in cross-border traffic to a former president, a Railway Age essay says.
Service improvements will help grow rail volumes and revenue, the company said during its fourth-quarter earnings call Friday.
Net profit for Kansas City Southern (NYSE: KSU) slipped in the fourth quarter of 2019 compared to the prior year, but revenues were 5% higher amid increases for chemicals and petroleum and industrial and consumer products. Fourth-quarter net income was $127.2 million, or $1.30 diluted earnings per share, compared with $161.1 million, or $1.59 diluted […]
Jim Blaze profiles TTX, a company that is essential to the railroad industry.
Lower rail volumes, an active Surface Transportation Board and a strike were among the key events that the U.S. and Canadian freight rail industry experienced this year.
Kansas City Southern and Canadian Pacific deliver goodwill to local communities along portions of their rail networks.
Several management teams from North America’s largest Class I railroads were on hand to discuss current demand, their networks and the future at the Credit Suisse 7th Annual Industrials Conference.
North American Class I carloads increased year-over-year in week 47 on a favorable comp. The prior four-week average remains weak.
Rail executives discussed short-term strategies for growing rail volumes amid expectations that volumes won’t pick up until well into 2020.
The railroad has completed the rollout of a cloud-based operational system.
Company eyes cross-border volume growth and efficiency improvements.
The railroads say the union refuses to negotiate on train crew size as both sides prepare for a new collective bargaining agreement.
Heading into earnings season, the railroads clearly have a revenue headwind as carloads declined again in the latest week.
The railroad, which has dedicated operations in Mexico, has invested in capital infrastructure related to energy.
