Posts Tagged ‘Canadian Pacific’

CP Work Stoppage Ends, Sides Agree to Submit their Dispute to Binding Arbitration

March 23, 2022

Canadian Pacific began resuming operations on Tuesday after it and one of its unions agreed to submit their contract dispute to binding arbitration.

The railroad began shutting down on Sunday in a Iabor dispute involving 3,000 locomotive engineers, conductors, and train and yard workers represented by the Teamsters Canada Rail Conference.

At the time, CP described it as a strike while the union described it as a lockout, although TCRC later pronounced it both.

Negotiations for a new contract had been ongoing since last September with the two sides at odds over wages, pensions and work rules.

In recent weeks the talks have been mediated by a member of the Canadian Federal Mediation and Conciliation Service.

In a statement, the union said that although binding arbitration is not its preferred method of resolving disputes, it was able to “negotiate terms and conditions that were in the best interest of our members.”

The union said it would have no further comment until the arbitration process is completed.

CP Canada Operations Halted by Labor Strife

March 22, 2022

Canadian Pacific operations in Canada were halted on Sunday due to a labor dispute.

The two sides can’t even agree on whether it is a strike or a lockout.

In a statement, CP said it is shutting down service across Canada and will work with its shippers as part of that process.

The two sides have been negotiating with a federal mediator but in the past week the Teamsters Canada Rail Conference had said its 3,000 members had authorized a strike while CP on March 16 said that if a new labor pact wasn’t reached in 72 hours it would lock out workers in an effort to force them to reach an agreement.

News reports indicate the two sides are at odds over wages, pensions and working conditions. The latter includes how much time away from home CP operating employees will be forced to spend with the union contending CP wants to be able to force workers to spend their federal reset break in some situations at an away from home terminal rather than the worker’s home terminal.

The two sides have been in negotiations since last September.

In dueling news releases issued on Monday each side blamed the other for the work stoppage.

The union has claimed that the dispute is both a lock out and a strike.

CP has urged the union to either agree to a new contract or accept binding arbitration. The latter is something the union has indicated it is willing to explore.

CP to Allow Amtrak to Use Detroit River Tunnel

February 8, 2022

Canadian Pacific has agreed to allow Amtrak to use its tunnel between Detroit and Windsor, Ontario, for one roundtrip per day, but it’s unclear if that will actually lead to any new service on the route.

The agreement was revealed in a filing by Amtrak in the case before the U.S. Surface Transportation Board of CP’s efforts to acquire Kansas City Southern.

Amtrak is supporting the merger and its filing cited a number of new service expansions for which CP has pledged to cooperate.

In theory, use of the Detroit River Tunnel might be a step toward reviving Amtrak service between Chicago and Toronto.

In practice, that concept faces many hurdles. Those begin with a lack of commitment by Amtrak or VIA Rail Canada to operate such a train.

The two passenger carriers once operated a Chicago-Toronto train known as the International, but it ran via Port Huron, Michigan, and Sarnia, Ontario, on Canadian National tracks rather than via Detroit and Windsor.

The International was discontinued in April 2004 and replaced with the existing Chicago-Port Huron Blue Water that is funded by the Michigan Department of Transportation.

MDOT had not indicated if it would be willing to fund service that extends to Toronto.

Amtrak and/or VIA would need to construct a connecting track between CP track in Windsor and the CN route now used by VIA between Windsor and Toronto.

The existing VIA Toronto-Windsor route ends at a stub-end terminal north of downtown.

In Detroit, Amtrak would need to build a new station in downtown Detroit or else have trains engage in a time-consuming backup move to the existing Detroit station in the New Center neighborhood.

Existing Chicago-Detroit trains terminate and originate in suburban Pontiac and the Detroit Amtrak station is located along that route rather than on the line that leads directly into the CP Detroit River tunnel.

The CP-Amtrak agreement does not require any capital investment from Amtrak for use of the Detroit River tunnel.

Also unclear is where customs inspections for the Chicago-Toronto train would be conducted.

For the International, those inspections were done on each side of the border, which led to longer running times.

Conrail Group Fails to Save SD80MAC

January 20, 2022

Efforts by the Conrail Historical Society to save a former Conrail SD80MAC have fallen short.

The society was hoping to save one of 23 of the units that Progress Rail acquired in 2020 from Norfolk Southern.

But Progress instead removed the engines and repurposed them for use on boats and scrapped the remaining frames and shells of the locomotives.

The Conrail Society said  in a Facebook post that it tried to reach an agreement with Progress to save one of those shells but the company instead scrapped all of them.

Saving an SD80MAC was atop the Conrail Society’s wish list because Conrail was the only railroad to buy that model of EMD locomotive.

“We completely understand Progress Rail is a business and respect and appreciate their considerable time spent conversing with us trying to make preservation a reality,” the Society wrote on Facebook. “We were talking until the very last moments of the final SD80MAC. While we are heartbroken by the result, we made every effort possible to make preservation a reality.”

The Conrail group indicated it will seek to save one of six SD80MACs that are on the motive power roster of Canadian Pacific, which has used them as a parts sources in an SD70ACU rebuild program.

For more information visit https://railfan.com/rare-sd80macs-scrapped-despite-efforts-to-preserve-one/

Amtrak to Back CP-KCS Merger

January 7, 2022

Amtrak said Thursday it will support the merger of Canadian Pacific and Kansas City Southern during the regulatory review process.

The passenger carrier said CP has agreed to cooperate with Amtrak in various service expansions in the Midwest and South.

These include increasing the frequency of service between Chicago and Milwaukee; extending a Hiawatha Service trains west of Milwaukee to St. Paul, Minnesota; and allowing Amtrak to use the Detroit River Tunnel to extend service to Toronto via Windsor, Ontario.

The latter service would connect with trains of VIA Rail Canada.

CP also has agreed to work with Amtrak to launch new service between New Orleans and Baton Rouge, Louisiana, and to participate in a study of new service between Dallas and Meridian, Mississippi.

In a statement, Amtrak President Stephen J. Gardner cited CP’s “consistent record as an Amtrak host” railroad, having achieved an A rating in the passenger carrier’s annual host railroad report card.

Amtrak said CP is the first Class I railroad to “complete 100 percent  certification of its Amtrak schedules” to the U.S. Surface Transportation Board.

This Time I Was Not Upset

December 23, 2021

Early in November I saw the Canadian Pacific ES44AC No. 8781 was going to be heading east on CSX. It had recently been given an orange Hapag-Lloyd  Saint John Express scheme.

Ursula and I had stops to make in Willoughby. Around 12:30 p.m. it was reported near Cleveland so I decided to wait in Mentor at the parking lot of the restaurant in the former New York Central passenger station.

The sun was shining in the perfect spot for an eastbound. About 1 p.m. a headlight appeared. I did not have my camera but was going to use Ursula’s iPhone.

By not having it ready to shoot, I did not get a photo. The lighting was ideal and the locomotive was spotless. I think I was upset.

Just before Thanksgiving No. 8781 was leading a CSX train again and I saw a post that it was passing through Collinwood yard in Cleveland.

I immediately hopped in the car with my camera to head to Perry. The post on HU was not close to the actual time it was seen since the train passed me on the way. I think I was upset.

About 9:30 a.m. on Wednesday I saw a post that it had passed through LaGrange as the DPU on the I 166. However, its nose was facing west.

There was no sun, but I did not care. I went to Perry and waited. The only train I saw was the one I wanted. I was not upset.

Article and Photographs by Edward Ribinskas

CP-KCS Deal to Close Today, STB Sets Hearing for CSX-Pan Merger

December 14, 2021

Canadian Pacific is expected to assume ownership of Kansas City Southern today (Dec. 14, 2021).

The $31 billion acquisition was approved by shareholders of both companies last year, but a merger of the two companies is pending review by the U.S. Surface Transportation Board.

KCS will continue to operate as an independent company during the review period and be placed in a blind trust until the STB rules in what is expected to be the fourth quarter of 2022.

During this period, management of KCS is expected to remain the same.

In an unrelated development involving Class 1 railroad mergers, the STB has set hearing dates of Jan. 13-14, 2022, for the proposed merger of CSX and New England regional railroad Pan Am Railways.

The hearing will be held online on Jan. 13 with time reserved for the following day if needed.

Those wishing to address the Board must file a notice of intent to participate by Dec. 20.
The STB also said last week that it will not require an environmental and historic review in the CSX acquisition of Pan Am.

KCS Stockholders OK Merger With CP

December 10, 2021

Stockholders of Kansas City Southern voted overwhelmingly on Friday in favor of a merger with Canadian Pacific.

KCS said the merger won approval of 99.6 percent of the votes cast. Earlier in the week CP shareholders approved the merger by a similar tally.

CP has proposed acquiring KCS in a stock and cash transaction by which KCS common share holders will receive $90 in cash and 2.844 CP shares for each KCS share held.

KCS preferred shareholders will receive $37.50 in cash. The deal is expected to close on Dec. 14 at which time KCS will be placed in a voting trust while the U.S. Surface Transportation Board reviews the proposed merger.

If the merger wins regulatory approval, the surviving company will be known as Canadian Pacific Kansas City.

The STB is expected to rule on the merger by the fourth quarter of 2022. The merger earlier received approval of regulators in Mexico.

CP Shareholders OK Merger with KCS

December 8, 2021

Shareholders of Canadian Pacific today approved a merger with Kansas City Southern. KCS shareholders will vote on the merger on Friday.

The vast majority of CP stockholders approved the $31 billion deal, which involves CP buying KCS and putting it in a blind trust while U.S. regulators consider the merger.

Terms of the deal include CP issuing 277 million shares of CP common stock to KCS common stock holders.

Review of the merger by the U.S. Surface Transportation Board is expected to take much of 2022.

If the merger is approved the surviving company will operate as Canadian Pacific Kansas City.

Mexico Approves CP-KCS Merger

November 27, 2021

The Mexican Federal Economic Competition Commission on Friday approved a proposed merger of Canadian Pacific and Kansas City Southern.

Mexican approval was needed because KCS has rail lines in that country.

The merger, which involves CP buying KCS, must still be reviewed by the U.S. Surface Transportation Board, a process that is expected to take about year.

At present CP and KCS continue to operate as independent entities, but if shareholders of both companies approve the deal later this month CP plans to place KCS into a blind trust owned by CP.