CN Aims to Create New, Competitive Speedway for Customers in Filing with Surface Transportation Board on the Proposed CP-KCS Merger
02 March 2022 - 7:30AM
CN (TSX: CNR, NYSE: CNI) yesterday filed a responsive application
with the Surface Transportation Board (“STB”) requesting specific
conditions related to the approval of the pending Canadian Pacific
(“CP”) and Kansas City Southern (“KCS”) merger (collectively
“CP-KCS”).
CN’s responsive application asks the STB to
condition any approval of a CP-KCS merger on the divestiture of the
KCS line from Kansas City, Missouri to Springfield and East St.
Louis, Illinois (“the Kansas City Speedway”) to CN, pursuant to the
STB’s statutory authority to order “the divestiture of parallel
tracks” as a merger condition. Granting CN control of the line will
provide customers with a new competitive option to move goods
across a key North American economic corridor.
“Under the right ownership, we believe there is
a clear opportunity to bring widespread economic benefits for
customers and communities across the American Midwest and Canada.
CN has a comprehensive plan for the Kansas City Speedway that will
increase competition, create jobs, reduce roadway congestion, and
positively impact the environment. It reflects CN’s ongoing efforts
to ensure competition and choice in our industry and aligns with
President Biden’s 2021 executive order on competition.”
- Rob Reilly, Executive Vice
President & Chief Operating Officer
CN’s creation of the Kansas City Speedway will
ensure that customers – particularly automotive and intermodal –
have greater competitive shipping options between Eastern Canada,
Detroit, Chicago and Kansas City. This pro-competitive solution to
the proposed merger will enable local economies to thrive.
Communities and customers recognize the benefit of CN’s creation of
the Kansas City Speedway. Over 70 letters of support have been
filed with the STB, including letters from the city of East St.
Louis and Congressman Frank Mrvan (IN-01).
About CNCN is a world-class
transportation leader and trade-enabler. Essential to the economy,
to the customers, and to the communities it serves, CN safely
transports more than 300 million tons of natural resources,
manufactured products, and finished goods throughout North America
every year. As the only railroad connecting Canada’s Eastern and
Western coasts with the U.S. South through a 19,500-mile rail
network, CN and its affiliates have been contributing to community
prosperity and sustainable trade since 1919. CN is committed to
programs supporting social responsibility and environmental
stewardship.
Forward-Looking
StatementsCertain statements included in this news release
constitute “forward-looking statements” within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
under 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 such 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,” “targets,” or other similar
words.
Forward-looking statements are not guarantees of
future performance and involve risks, uncertainties and other
factors which may cause the actual results or performance of the
Company to be materially different from the outlook or any future
results or performance implied by such statements. Reference should
be made to Management’s Discussion and Analysis in CN’s annual and
interim reports, Annual Information Form and Form 40-F, filed with
Canadian and U.S. securities regulators and available on CN’s
website, for a description of major risk factors.
Contacts:
Media Canada Jonathan AbecassisCN Media Relations & Public
Affairs (438) 455-3692Jonathan.Abecassis@cn.ca
Longview Communications & Public Affairs Martin Cej (403)
512-5730mcej@longviewcomms.caUnited States Brunswick Group Michael
France / Andrew Spinelli (917) 676-5802 / (312)
468-5802mfrance@brunswickgroup.comaspinelli@brunswickgroup.com |
Investment Community Paul Butcher Vice-President Investor Relations
(514) 399-0052 investor.relations@cn.ca |
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