CN Submits Notice of Intent to File Successful Application with Surface Transportation Board

Asks the STB to condition any approval of a CP-KCS merger on the divestiture of KCS Springfield Line to CN, linking Kansas City, Missouri to Springfield, Illinois

CN will invest at least US$250 million, promoting competition while creating substantial environmental benefits by taking trucks off the road

MONTREAL, Jan. 13, 2022 (GLOBE NEWSWIRE) — CN (TSX: CNR, NYSE: CNI) last night filed a notice of intent to file a conforming application on February 28, 2022 with the Surface Transportation Board (“STB”). ) ) pursuant to the STB’s procedural timeline for reviewing the impending merger of Canadian Pacific (“CP”) and Kansas City Southern (“KCS”) (collectively “CP-KCS”).

In its conforming application, CN will ask the STB to condition any approval of a CP-KCS merger on the divestiture of the KCS lines from Kansas City, Missouri to Springfield and East St. Louis, Illinois (the “Springfield Line”) to CN , pursuant to the STB’s statutory power to order “the divestiture of parallel tracks” as a condition of the merger.

The Springfield Line is a direct competitive alternative to CP’s route from Kansas City to Chicago, and beyond to Detroit and Eastern Canada. CP and KCS made it clear in their merger application that they planned no investment in the Springfield line and would instead reduce it in favor of CP’s existing parallel line.

Bringing the Springfield Line under CN’s control represents a major opportunity to improve transportation options, promote rail-to-rail competition, and get thousands of long-haul trucks off the road every year through rail-to-truck competition. increased. CN’s plan for the line will benefit all stakeholders and advance CN’s ongoing efforts to ensure competition and choice in our industry, while creating new jobs and economic opportunities in the region.

Specifically, with the Springfield Line, CN:

  • Make investments of at least US$250 million in the Kansas City, Missouri to Springfield and East St. Louis, Illinois line, including terminal upgrades;

  • Taking several thousand trucks off the road, reducing congestion and emissions;

  • Promote competitive options for customers, including auto and intermodal traffic, which will lead to increased economic prosperity for the Midwest consistent with the objectives of President Biden’s Executive Order on Competition;

  • Open new international markets to customers, including safely and reliably connecting manufacturers and farmers in Illinois, Indiana and Michigan to the world; and,

  • Preserve all existing competitive options by providing KCS access to customers on the line.

Under CN’s proposal, CN would make the necessary capital investments to improve operating speed and terminals, generate environmental benefits and provide additional pro-competitive options and access to automotive and intermodal customers.

About CN
CN is a global transportation leader and business enabler. Vital to the economy, the customers and the communities it serves, CN safely transports more than 300 million tonnes of natural resources, manufactured goods and finished goods across North America each year. As the only railroad connecting the east and west coasts of Canada to the southern United States with a 19,500-mile rail network, CN and its affiliates have been helping communities prosper and trade sustainably since 1919. CN is committed to implementing programs that support social responsibility and environmental stewardship.

Forward-looking statements
Certain statements included in this press release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. By their nature, forward-looking statements involve risks, uncertainties and assumptions. The Company cautions that its assumptions may not materialize and that current economic conditions render these assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as “believes”, “expects”, “anticipates”, “assumes”, “outlook”, “plans”, “target” or other similar words.

Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that may cause the actual results or performance of the Company to be materially different from the outlook or from any future results or performance under -understood by these statements. For a description of the principal risk factors, reference should be made to the MD&A contained in CN’s annual and interim reports, annual information form and Form 40-F, filed with the Canadian and United States securities authorities and available on the CN website.

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