[160621.EN.BIZ] CN Gets 400 More Letters Supporting Its KCS Acquisition

 

THE Canadian National Railway (CN) and Kansas City Southern (KCS) recently announced a stakeholder support for their proposed pro-competitive merger that features some 400 additional letters of support, totalling 1,400.

The proposal between the two will create a transportation network across North America and will enhance competition, increase economic growth, and deliver benefits to local communities.

The letters express support for the proposal and as a use of a voting trust to complete the combination, and the most recent letter filed with Surface Transportation Board reads below.

"Applicants Canadian National Railway Company and Kansas City Southern respectfully submit the enclosed 300 letters from stakeholders relating to CN's and KCS's proposed combination. CN and KCS are encouraged by the enthusiastic response they have received from customers, rail suppliers, ports, state and local stakeholders, logistics providers, and other stakeholders about a CN-KCS combination," said the letter.

"This outpouring of support has now resulted in well over 1,400 total letters of support for either the proposed CN-KCS combination, for the proposed voting trust, or for both," said the letter.

"283 of the letters being filed today support the proposed combination of KCS and CN. They include a support letter from John Bel Edwards, Governor of Louisiana, who expresses his belief that a KCS-CN 'combination would serve Louisiana well by expanding the collective reach of both railroads and bringing new, sustainable transportation solutions to businesses in the southeastern part of the state as well as an East-West corridor across North Louisiana,'" said the letter.

"Many other letters come from KCS customers, excited by the extended reach of a combined CN-KCS network and the opportunities that this creates for them to reach new markets with competitive single-line service," said the letter.

"Other support letters specifically praise CN's and KCS's vision of converting truck shipments to rail, and the benefits that a CN-KCS combination could have for north-south trade traffic. In short, stakeholders are energized about the public benefits that a CN-KCS combination could bring," said the letter.

"293 of the letters being filed today support CN's and KCS's request that the Board approve their proposed voting trust agreement. Many letters note that the CN-KCS proposed voting trust is identical to that recently approved by the Board for Canadian Pacific and ask the Board to similarly approve CN's and KCS's proposal," said the letter.

"CN and KCS will continue to engage with industry stakeholders about the proposed CN-KCS combination and the tremendous public interest benefits it will bring by creating the premier railway for the 21st century with a single network across Canada, the United States, and Mexico," said the letter.

Source : HKSG / Photo : Progressive Railroading.