Montreal Quebec - CN reported on 13 Jan 2022 that it will ask the Surface Transportation Board (STB) "to condition any approval of a CP/KCS merger on the divestiture of KCS lines from Kansas City, Missouri, to Springfield and East St. Louis, Illinois, (the Springfield Line) to CN, pursuant to the STB's statutory authority to order the divestiture of parallel tracks as a merger condition."
 
The request will be made in CN's responsive application, which the Class I railroad said it would file on 28 Feb 2022, the STB's deadline in its procedural schedule for reviewing the pending CP and KCS merger.
 
CP and KCS in September 2021 agreed to combine and form Canadian Pacific Kansas City (CPKC), the first U.S.-Mexico-Canada rail network.
 
STB in November accepted for consideration their application.
 
CN claims that the "Springfield Line is a direct competitive alternative to CP's route from Kansas City to Chicago, and beyond to Detroit and eastern Canada.
 
CP and KCS have made it clear in their merger application that they plan no investment on the Springfield Line, and instead will de-emphasize it in favor of CP's existing parallel line.
 
"Putting the Springfield Line under CN's control represents a major opportunity to improve transportation options, promote rail-to-rail competition, and take many of thousands of long-haul trucks off the road annually through increased rail-to-truck competition.
 
CN's plan for the line will benefit all stakeholders and will advance CN's continual efforts to ensure competition and choice in our industry, while also creating new jobs and economic opportunities in the region."
 
Under that plan, CN said it would invest at least US$250 million in the Springfield Line to:
 
- Improve operating speed and terminals.
 
- Provide "options for customers, including automotive and intermodal traffic, which will lead to increased economic prosperity for the Midwest in line with the goals of President Biden's executive order on competition."
 
- Open new international markets to customers, including "safely and reliably linking Illinois, Indiana, and Michigan manufacturers and farmers to the world."
 
- Preserve "all existing competitive options by providing KCS access to customers on the line."
 
Marybeth Luczak.