{"id":122587,"date":"2021-04-26T11:45:25","date_gmt":"2021-04-26T11:45:25","guid":{"rendered":"https:\/\/precoinnews.com\/?p=122587"},"modified":"2021-04-26T11:45:25","modified_gmt":"2021-04-26T11:45:25","slug":"shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern\/","title":{"rendered":"Shippers push for CP Railway to win bidding war for Kansas City Southern"},"content":{"rendered":"

WINNIPEG, Manitoba, (Reuters) – North America\u2019s freight rail customers, from grain shippers to logistics companies, are pushing for Canadian Pacific Railway Ltd to win a bidding war for Kansas City Southern over rival Canadian National Railway, eyeing stronger competition and swifter service.<\/p>

A logo of the Kansas City Southern (KCS) Railway Company is pictured in Toluca, Mexico October 1, 2018. REUTERS\/Edgard Garrido<\/figcaption>

A takeout of KCS, would be the first major North American railroad combination in more than 20 years and create the first network to include the United States, Canada and Mexico.<\/p>\n

CN, Canada\u2019s biggest railroad, made an unsolicited $30 billion bid for KCS on Tuesday, topping CP\u2019s agreed $25 billion bid, but CP said last week it was not considering raising its offer.<\/p>\n

Rail customers\u2019 lobbying of the regulator, U.S. Surface Transportation Board (STB), is so far lopsided in favor of CP, which announced its combination with KCS on March 21.<\/p>\n

CP says that 416 rail shippers have written to STB in support. As of Friday, the STB had posted at least 135 letters regarding CP\u2019s bid, many of them supporting it and others urging full scrutiny of any merger with KCS.<\/p>\n

\u201cThe end-to-end CP-KCS transaction will improve<\/p>\n

service options, with new single-line hauls and broader access to markets across North America,\u201d said Dean McQueen, vice-president of Merchandising and Transportation at Canadian grain handler Viterra, in a letter that mirrored the language of numerous other letters of support.<\/p>\n

Germany-based potash producer K+S AG, which has a Saskatchewan mine that CP services, wrote that it supports CP\u2019s bid and opposes CN\u2019s offer because it would reduce competition.<\/p>\n

Other CP supporters include marine terminal operator DP World, shipping and container company Hapag-Lloyd, Canadian grain handler Richardson International and oil refiner Valero Energy Corp.<\/p>

Slideshow ( 2 images )<\/span><\/figcaption>

CN said in a statement that its combination with KCS would create a network that is shorter and faster than rail or truck competitors.<\/p>\n

But if CP buys KCS, the bulked-up company will be able to better compete with dominant railway BNSF Railway Co, said Kevin Karel, general manager at The Arthur Companies, which ships corn and other crops by rail.<\/p>\n

CP\u2019s line crosses the agricultural state of North Dakota while CN\u2019s does not.<\/p>\n

\u201cWe\u2019re really remote here, and so we need access to far more destinations, and that\u2019s where this KCS merger really helps North Dakota farmers,\u201d Karel said in an interview.<\/p>\n

SHIPPER VIEWS SEEN KEY<\/h2>\n

Freight forwarder DUBO International Logistics, a track inspection technology company and a tire company have filed support letters for CN – the only three STB posted in favor of CN as of Friday.<\/p>\n

Many shippers intend to publicly state their backing for CN\u2019s offer in the coming days, CN spokesman Mathieu Gaudreault said. CP\u2019s larger number of support letters is due to its earlier bid, he said.<\/p>\n

Shippers\u2019 views on the competing bids to the board may determine how KCS assesses the relative regulatory risks, investment bank Credit Suisse said in a note. CP has no overlapping rail networks with KCS, unlike CN which runs parallel for about 100 kilometres (62 miles) in Louisiana, making it easier for CP\u2019s deal to clear regulatory hurdles.<\/p>\n

CP on Saturday welcomed the U.S. regulator upholding a waiver that exempts KCS from the same scrutiny larger railroads face during proposed mergers. The STB had granted KCS, the smallest of the Class 1 railways, an exemption from new merger rules in 2001 because a combination involving KCS did not raise the same concerns that any transaction among bigger railways might create.<\/p>\n

U.S. agribusiness Cargill Inc, and industry groups for chemical producers, corn refiners, and a trade group that promotes U.S. wheat exports had opposed use of the waiver, saying that a takeover of KCS is big enough to warrant full scrutiny.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

WINNIPEG, Manitoba, (Reuters) – North America\u2019s freight<\/p>\n","protected":false},"author":3,"featured_media":122586,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23054],"tags":[],"yoast_head":"\nShippers push for CP Railway to win bidding war for Kansas City Southern - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/markets\/shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shippers push for CP Railway to win bidding war for Kansas City Southern - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"WINNIPEG, Manitoba, (Reuters) – North America\u2019s freight\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/markets\/shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-26T11:45:25+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/04\/Shippers-push-for-CP-Railway-to-win-bidding-war-for-Kansas-City-Southern.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/markets\/shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern\/\",\"url\":\"https:\/\/precoinnews.com\/markets\/shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern\/\",\"name\":\"Shippers push for CP Railway to win bidding war for Kansas City Southern - Pre Coin News\",\"isPartOf\":{\"@id\":\"https:\/\/precoinnews.com\/#website\"},\"datePublished\":\"2021-04-26T11:45:25+00:00\",\"dateModified\":\"2021-04-26T11:45:25+00:00\",\"author\":{\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\"},\"breadcrumb\":{\"@id\":\"https:\/\/precoinnews.com\/markets\/shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/precoinnews.com\/markets\/shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/precoinnews.com\/markets\/shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/precoinnews.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Markets\",\"item\":\"https:\/\/precoinnews.com\/category\/markets\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Shippers push for CP Railway to win bidding war for Kansas City Southern\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/precoinnews.com\/#website\",\"url\":\"https:\/\/precoinnews.com\/\",\"name\":\"Pre Coin News\",\"description\":\"precoinnews.com\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/precoinnews.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\",\"name\":\"mediabest\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"caption\":\"mediabest\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Shippers push for CP Railway to win bidding war for Kansas City Southern - Pre Coin News","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/precoinnews.com\/markets\/shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern\/","og_locale":"en_US","og_type":"article","og_title":"Shippers push for CP Railway to win bidding war for Kansas City Southern - Pre Coin News","og_description":"WINNIPEG, Manitoba, (Reuters) – North America\u2019s freight","og_url":"https:\/\/precoinnews.com\/markets\/shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern\/","og_site_name":"Pre Coin News","article_published_time":"2021-04-26T11:45:25+00:00","author":"mediabest","twitter_card":"summary_large_image","twitter_image":"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/04\/Shippers-push-for-CP-Railway-to-win-bidding-war-for-Kansas-City-Southern.jpg","twitter_misc":{"Written by":"mediabest","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/precoinnews.com\/markets\/shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern\/","url":"https:\/\/precoinnews.com\/markets\/shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern\/","name":"Shippers push for CP Railway to win bidding war for Kansas City Southern - Pre Coin News","isPartOf":{"@id":"https:\/\/precoinnews.com\/#website"},"datePublished":"2021-04-26T11:45:25+00:00","dateModified":"2021-04-26T11:45:25+00:00","author":{"@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a"},"breadcrumb":{"@id":"https:\/\/precoinnews.com\/markets\/shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/precoinnews.com\/markets\/shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/precoinnews.com\/markets\/shippers-push-for-cp-railway-to-win-bidding-war-for-kansas-city-southern\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/precoinnews.com\/"},{"@type":"ListItem","position":2,"name":"Markets","item":"https:\/\/precoinnews.com\/category\/markets\/"},{"@type":"ListItem","position":3,"name":"Shippers push for CP Railway to win bidding war for Kansas City Southern"}]},{"@type":"WebSite","@id":"https:\/\/precoinnews.com\/#website","url":"https:\/\/precoinnews.com\/","name":"Pre Coin News","description":"precoinnews.com","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/precoinnews.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a","name":"mediabest","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","caption":"mediabest"}}]}},"_links":{"self":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/122587"}],"collection":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/comments?post=122587"}],"version-history":[{"count":0,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/122587\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media\/122586"}],"wp:attachment":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media?parent=122587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/categories?post=122587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/tags?post=122587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}