Steel Products Prices North America
Canadian Pacific, Kansas City Southern Rail Merger Approved
March 16, 2023
The US Surface Transportation Board (STB) has approved the merger of the Canadian Pacific (CP) and Kansas City Southern (KCS) railways, subject to certain conditions.
When completed, the two railways would combine to form Canadian Pacific Kansas City (CPKC), the first single-line railway that connects the US, Mexico, and Canada.
“The decision authorizes CP to exercise control of KCS as early as April 14, 2023, at or after which point CP and KCS would combine to create the new CPKC,” KCS said in a statement Wednesday. “CP is reviewing the full 212-page decision in detail and in the coming days will announce its plans with respect to the creation of CPKC.“
CP president and CEO Keith Creel lauded the decision. “This decision clearly recognizes the many benefits of this historic combination,” he said, adding: “As the STB found, it will stimulate new competition, create jobs, lead to new investment in our rail network, and drive economic growth.”
KCS said the STB noted in its decision it expects the new single-line service will enhance the growth of rail traffic. It will shift “approximately 64,000 truckloads annually from North America’s roads to rail, and will support investment in infrastructure, service quality, and safety,” STB said.
The board continued that the transaction is expected to add over 800 new union-represented operating positions in the US.
The merger was first announced in March 2021. CP completed its $31-billion buy of KCS on Dec. 14, 2021.
CPKC will be headquartered in Calgary, Alberta. It will operate approximately 20,000 miles of rail, and employ close to 20,000 people, KCS said. The company added that the full integration of CP and KCS is expected to happen over the next three years.
By Ethan Bernard, ethan@steelmarketupdate.com
Latest in Steel Products Prices North America
SMU Price Ranges: Sheet and plate move ‘soft sideways’ to start August
Sheet and plate prices were either flat or modestly lower this week on softer demand and increasing domestic capacity.
Nucor lowers HRC list price to $890/ton
Nucor’s weekly consumer spot price (CSP) for hot-rolled (HR) coil was adjusted $10 per short ton (st) lower this week after holding steady last week.
CRU: Q3 will be the lowest point in current sheet price cycle
CRU Principal Analyst Shankhadeep Mukherjee expects a restocking cycle for steel sheet products in most parts of the world due to either low inventories or seasonally stronger demand.
CRU: US rebar and wire rod prices rise alongside S232 increase
CRU Senior Steel Analyst Alexandra Anderson discusses current market and pricing dynamics for long steel products in the US.
SMU Price Ranges: Sheet and plate steady ahead of Independence Day
Sheet and plate prices were little changed in the shortened week ahead of Independence Day, according to SMU’s latest check of the market.