(Reuters circulated the following story by Jeffrey Jones on November 27.)
CALGARY, Alberta — Canadian Pacific Railway Ltd. expressed optimism on Tuesday after a first round of talks with Minnesota’s Mayo Clinic aimed at persuading the famed medical facility to drop its criticism of the railway’s takeover of a northern U.S. line.
Last month, the Rochester, Minnesota, clinic and BNSF Railway Co. asked the U.S. Surface Transportation Board to go slow in reviewing CP Rail’s acquisition of the Dakota, Minnesota & Eastern Railroad.
Mayo Clinic fears a big jump in train traffic past the facility should CP Rail pursue an expansion of DM&E into Wyoming’s Powder River Basin coal fields. Mayo has said it wants a full environmental and safety review.
CP Rail said both sides considered the meeting a success and agreed to more discussions.
Canada’s No. 2 railway also repeated that it has made no decisions about the expansion to the coal basin.
“The transaction must be approved by the Surface Transportation Board before CP can influence any operational decisions or practices,” it said in a statement.
CP Rail agreed in September to pay $1.5 billion for DM&E and its subsidiary, Iowa-based Chicago & Eastern. CP will pay an additional $1 billion if it pursues the expansion plans and meets certain targets for coal shipments.