Shippers Oppose CN-KCS Voting Trust

A group of railroad shippers wants the U.S. Surface Transportation Board to reject Canadian National’s bid to place Kansas City Southern into a voting trust while their proposed merger is being reviewed.

The group said they are not taking a position on the CN-KCS merger, but are critical of the trust proposal.

The shippers question whether CN is paying too much for KCS and fear the combined railroad will lead to increased rates for shippers or saddle CN with debt if it is forced to sell KCS in the event the merger is rejected.

They also argue that a voting trust would not hold KCS management accountable while the merger is under review.

Shipper organizations in opposition are the Freight Rail Customer Alliance, National Coal Transportation Association, and Private Railcar Food and Beverage Association.

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