Overview of the Proposed Acquisition
On October 29, 2021, Canadian Pacific Railway Limited, et al. (CP) and Kansas City Southern, et al. (KCS) (collectively, Applicants) filed an application with the Surface Transportation Board (Board) seeking authorization from the Board for CP to acquire KCS. CP is one of Canada’s two major railroads, extending across the country and connecting east and west coast ports. In the U.S., CP connects to Buffalo and Albany, New York and Searsport, Maine. CP also runs south into the U.S. Midwest and connects with KCS in Kansas City, Missouri. KCS is a Class I railroad that extends from Kansas City, Missouri to the Gulf Coast and into Mexico, operating across 10 states in the Midwest and Southeast. CP and KCS provide rail service for a variety of industries, including agriculture and minerals, military, automotive, chemical and petroleum, energy, industrial, and consumer products. The combination of these two railroads would be an ‘end-to-end’ merger because the CP and KCS railroad networks do not overlap.
The proposed acquisition would result in changes in rail traffic on portions of the combined rail network. Rail traffic would increase on some rail line segments and would decrease on others. Certain rail lines in Illinois, Iowa, Missouri, Kansas, Oklahoma, Arkansas, Louisiana, and Texas that would experience increases in rail traffic of at least eight additional trains per day. The largest change would occur on the CP mainline between Sabula, Iowa and Kansas City, Missouri, which would experience an increase in rail traffic of approximately 14.4 additional trains per day, on average. Increases in operational activities at rail yards and intermodal facilities would also occur.
To support increased rail traffic on the combined network, the Applicants propose to add new passing sidings or extend existing passing sidings at 24 locations within the rail right-of-way as part of the proposed acquisition. Sidings would be added or extended at locations in Louisiana, Oklahoma, Arkansas, Kansas, Minnesota, Illinois, Iowa, and Missouri. The Applicants also propose to add approximately four miles of double track within the right-of-way along the KCS Pittsburg Subdivision in Missouri and to add approximately five miles of facility working track within the right-of-way adjacent to the International Freight Gateway intermodal terminal in Missouri. The Applicants do not propose to construct any new rail lines that would require a license from the Board or to abandon any rail lines as part of the proposed acquisition.
The Board’s Office of Environmental Analysis (OEA) is preparing an Environmental Impact Statement (EIS) to assess potential impacts on the environment, including impacts related to safety, transportation, land use, air quality, noise, biological resources, water resources, cultural and historic resources, and environmental justice. Learn more about the EIS process.
The EIS will focus on the following types of impacts from the proposed acquisition:
- Potential impacts from changes in rail operations along rail lines and at rail yards that would experience increases in rail traffic as a result of the proposed acquisition that would exceed OEA’s thresholds for environmental review. These impacts could include noise impacts, rail operations safety impacts, and air quality impacts from air emissions from locomotives.
- Potential impacts related to changes in vehicular traffic on roadways and at facilities as a result of the proposed acquisition that would exceed OEA’s thresholds for analysis. These could include impacts related to safety on roadways that provide access to intermodal facilities.
- Potential impacts that could result from making capital improvements within the rail right-of-way as part of the proposed acquisition. These could include impacts on wildlife or plant habitat or impacts on water resources, such as streams and wetlands.