Ag groups closely following rail merger

Canadian Pacific Railway’s acquisition of Kansas City Southern could open new opportunities for agricultural shippers throughout North America.

Soy Transportation Coalition Executive Director Mike Steenhoek tells Brownfield the merger would provide the first single-line service connection for Canada, the United States, and Mexico.

“Being able to have more expeditious access into the Mexican market—that’s something that’s clearly appealing,” he says.  “Others have mentioned that also opens up greater competition potential from Canadian agriculture.”

Steenhoek says the effects of combining the sixth and seventh largest Class I railroads will be monitored for seven years as part of the approval process and shippers will have a voice if they become negatively impacted.

“We want it to be successful for agriculture, and so it’s definitely going to be something that we’re going to be very much engaged in moving forward,” he shares.

The National Association of Wheat Growers and U.S. Wheat Associates have expressed concerns about the potential for higher rates and a lack of competition.

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