Skip to content

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. If the Board authorizes the Proposed Acquisition, CP and KCS would combine into a single rail system to be known as Canadian Pacific Kansas City (CPKC). The Proposed Acquisition would be an “end to-end” merger because the existing CP and KCS systems do not overlap. The combined CPKC network would comprise approximately 20,350 miles of track in the U.S., Canada, and Mexico, including rail lines over which the Applicants have trackage rights, of which approximately 8,600 miles would be in the U.S.

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 would potentially 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 this expected increase in rail traffic, the Applicants plan to make 25 capital improvements within the existing rail right-of-way, along the combined CPKC network, which would include adding new passing sidings, extending existing sidings, adding a section of double track, and adding a facility working track. Sidings would be added or extended at locations in Louisiana, Oklahoma, Arkansas, Illinois, Iowa, and Missouri. The Applicants also propose to add a section of double track within the right-of-way along the KCS Pittsburg Subdivision in Missouri and a segment 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.

Canadian Pacific and Kansas City Southern trains on tracks

The Board’s Office of Environmental Analysis (OEA) has prepared a Draft EIS pursuant to the National Environmental Policy Act (NEPA) and related laws, including Section 106 of the National Historic Preservation Act (NHPA). The Draft EIS analyzes the potential environmental impacts of the Proposed Acquisition, including impacts associated with increased rail traffic and the 25 planned capital improvements. OEA also considered the No-Action Alternative, which would occur if the Board were to deny authority for CP to acquire KCS. Under the No-Action Alternative, OEA anticipates that rail traffic would only increase on the CP and KCS networks as a result of general economic growth and that the Applicants would not add the planned capital improvements.

The Draft EIS focuses on the following types of impacts from the Proposed Acquisition:

  1. 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.
  2. 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 increased truck traffic on roadways that provide access to intermodal facilities.
  3. Potential impacts could result from making the planned 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.

Contact Us

By phone:

EIS Information Line: (888) 319-2337