CP White Paper Makes Case for NS Acquisition, Focusing on Mitigating Chicago Rail Congestion

Canadian Pacific issued a white paper on Wednesday to amplify its assertion that a merger with Norfolk Southern would help mitigate railroad congestion in Chicago.

It is the second such paper that CP has issued this month as it takes its case for acquiring NS to the public. The complete version can be found here: http://www.cpr.ca/en/investors/ns-proposal

The NS board of directors has rejected three CP offers to purchase NS stock.

CP argues that a merger with NS would have a meaningful, lasting impact on Chicago congestion for the benefit of customers, competitors and the broader economy.

It proposed to do that by:

• Providing options to shift traffic to alternative routings, which would also serve to relieve pressure across the network.
• Making operational improvements to a switching carrier and moving processing interchanges within Chicago to underutilized hubs outside the city.
• Identifying a number of other opportunities for operational improvements in train and routing management.

 

Tags: Canadian Pacific, Class 1 railroad mergers, CP-NS merger, Norfolk Southern, NS-CP merger talks, railroad mergers