(Source: Canadian Pacific Railway press release, February 25, 2016)
CALGARY, Alberta — Canadian Pacific has received over 80 letters of support from a broad cross section of customers for CP’s proposal to acquire Norfolk Southern Corp. (NS); 62 of these letters have been posted to the Surface Transportation Board (STB) website. That brings the number of letters from shippers in support of the proposed CP-NS combination to more than three for every one shipper letter in opposition.
CP believes that its proposed combination with NS will introduce alternative options for re-routing traffic around areas of congestion, create new opportunities to generate the most efficient route for rail shipments, allow CP-NS to provide end-to-end service to customers and improve overall service for shippers of all sizes across North America.
These letters of support demonstrate that shippers with business in both the United States and Canada agree that the proposed combination would be beneficial.
“CP is committed to providing the best service at the best price,” said Keith Creel, CP’s President and COO. “Change is necessary to support continued economic growth, and continued growth in the U.S. economy is dependent on North American rail service meeting current and future demand. Without the ability to add infrastructure or build more track, options to increase capacity are becoming limited.”
The proposed transaction offers the best opportunity to improve efficiency of the existing network and create much needed incremental capacity without adding infrastructure, all while improving service for shippers. A combined CP-NS railroad would enhance competition and better support the success of the shippers and industries it serves, and satisfy the STB and Canadian regulators.
Earlier this month, CP submitted a resolution to NS shareholders to ask their board of directors to meet with CP. CP is also seeking a declaratory order from the STB as a means to better understand the STB’s views on the proposed voting trust model ahead of any formal application.
For more information on CP’s proposal to NS, visit CPconsolidation.com.