Posts Tagged ‘Canadian Pacific’

Comment Period Extended on CP-KCS Merger

September 7, 2022

The deadline to comment on the draft environmental analysis of the proposed merger of Canadian Pacific and Kansas City Southern has been extended to Oct. 14.

The U.S. Surface Transportation Board said on Tuesday it extended the deadline at the request of officials from “affected communities.”

The notice extending the comment period noted “no further extensions of time will be granted” after the October due date.”

A final environmental analysis will be issued after the comment period closes.

Comments on the draft analysis may be submitted electronically on the Board-sponsored project website or the Board’s website by clicking on the “E-FILING” link.

Committee Gives CP-KCS Merger an OK

August 17, 2022

An interagency federal government committee has given its approval of the proposed merger of Canadian Pacific and Kansas City Southern.

The Committee on Foreign Investment in the United States is authorized to review certain transactions involving foreign investment and certain real estate transactions by foreign entities to determine their effect on national security.

The merger is still being reviewed by the U.S. Surface Transportation Board. That review is expected to be completed by early 2023.

STB Hearings Set for CP-KCS Merger

July 23, 2022

Three days of public hearings will be held in September by the U.S. Surface Transportation Board as it continues to review the proposed merger of Canadian Pacific and Kansas City Southern.

The hearings will be held at STB headquarters in Washington on Sept. 28, 29 and 30 and will be livestreamed online.

In a news release, regulators said the deadline to register to speak during the hearings will be Sept. 14. It also set an Oct. 14 deadline for submission of briefs in the case. After that date the STB will close the record on the merger.

By federal law regulators are required to issue a ruling in a merger proceeding within 90 days after the close of the record unless an environmental analysis has not been completed.

That would push the decision date for the merger to as late as mid-January with the decision becoming effective 30 days later.

Biden Names PEB Members

July 20, 2022

Three members of a presidential emergency board have been named by President Joseph Biden.
they are Ira Jaffe, as chair, and members David Twomey and Barbara Deinhardt,

The board will investigate over the next 30 days the impasse over a new labor contract between major railroads and their unions and make recommendations for resolving the stalemate.

The railroads and unions can accept or reject the recommendations.

If the latter happens, there will be another 30-day period before the 13 unions can strike or management can lock out its employees. That could occur as early as Sept 18.

If either a strike or lockout occurs, Congress could step in and order an end to the strike or the lockout. Congress could also impose terms of a new contract.

Jaffee is a lecturer in law at The George Washington University who has served as a neutral arbitrator in labor disputes since 1981. He has been named to various PEBs by presidents George W. Bush and Barack Obama.

Twomey is a law professor at Boston College and the author of textbooks on labor, employment and business law. He has served on seven previous PEBs.

Deinhardt is an independent arbitrator who has chaired the New York State Employment Relations Board and State Workers’ Compensation Board. She served as a member of PEB No. 248 and was appointed to three successive terms on the Foreign Service Grievance Board and one PEB.

The PEB appointed by Biden last week in an executive order will review the wage, benefits and work rules that are in dispute.

CSX is participating in the national contract talks only on fringe benefits and is negotiating separately on wages and work rules with two of its unions, BLET and SMART-TD. Canadian Pacific is negotiating separately with all of its unions.

CP-KCS Want Merger Without Conditions

July 15, 2022

Canadian Pacific and Kansas City Southern have asked the U.S. Surface Transportation Board to approve their merger without conditions.

The two recently filed a 4,300-document with the STB in which they sought to rebut requests for conditions being made by other railroads and interested parties.

CP-KCS content that their merger is compellingly in the public interest and should be approved without conditions “beyond those embodying the commitments Applicants are making.”

Those commitments, including some made to Amtrak, are detailed in the document.

CP-KCS noted that no shipper  or shipper association has suggested that the merger be denied.

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.