WASHINGTON — U.S. Sen. Elizabeth Warren (D-Mass.), in a letter to Surface Transportation Board Chairman Martin J. Oberman, has asked that the STB deny the merger of Canadian Pacific and Kansas City Southern, saying the merger “would reduce competition in an already highly consolidated market and could cost increased shipping costs.”
Warren, in the letter dated March 2, says the merger could result in “significant job losses and service disruptions,” cites safety issues raised by the Feb. 3 Norfolk Southern derailment in East Palestine, Ohio, quoting the September 2022 meeting testimony of former Davenport, Iowa, Mayor Bill Gluba, who warned of a potential “disaster of monumental proportions” [see “Residents speak out against CP-KCS merger …,” Trains News Wire, Sept. 14, 2022].
The letter also notes concerns by the Antitrust Division of the U.S. Department of Justice [see “Justice Department chimes in, again …,” News Wire, Jan. 26, 2023]. It argues that the board may authorize a merger only if it is “consistent with the public interest.” Warren writes, “This merger clearly fails the public interest test, and accordingly, I ask STB to uphold the law and deny it.”
In their merger application with the STB filed in October 2021, CP and KCS said the merger would create more than 1,000 jobs [see “CP, KCS file merger application,” News Wire, Nov. 1 , 2021]. The STB merger ruling was due Jan. 19, but was delayed by completion of the required Environmental Impact Statement, which was finished on Jan. 27. The board could issue its ruling as early as today (Monday, March 6) — 30 days following the publication of the environmental document in the Federal Register.
Elizabeth Warren couldn’t spell “Choo Choo” if you spotted her three of the four letters.
Follow the money. Will she, her family or close allies lose money when the merger goes through. Her statements are not related to the greater good and are inappropriate. How does she get reelected after lying?
“… a half-wit communist (and ‘Native American’ to boot) sitting in the senate and shooting off her big mouth (and grandstanding for the cameras) . Actually, Sen. Warren wants a high speed passenger train named after her. The west bound trains will remain the “Hiawatha”, while the east bound trains will be named after her, the “Pocahontas”
Charles Landey: Yes, definitely NOT IN THE PUBLIC INTEREST to have a half-wit communist (and ‘Native American’ to boot) sitting in the senate and shooting off her big mouth (and grandstanding for the cameras) on a complex business matter of which she has absolutely no clue about.
That women is a fraud and a complete embarrassment, sadly she is too arrogant to realize what a joke she is …..
William Dahlsten: Thanks for the laugh!
Been there. Done that. No way!
One of the little known facts and one that no one really pays attention to is how many new shortline railroads are born out of mergers with the big giants. Many a branch line or divison that is abandoned by a big time merger is brought back to life by creation of a new short line company that revives service and serves the various industries along that route. While we talk about and argue and debates the pros and cons and merits of these mergers of the big boys of railroading, there are hundreds of shortline railroads flourishing and making money for their owners and providing dependable and reliable service for their customers. The service that these shortlines provide is even better than when the big Class 1 railroads had those branch lines. Let us keep an open mind on these mergers and see the positive results that come out of them.
Joseph C. Markfelder
This merger makes so much sense , it’s just amazing it is not a done deal already.
Upvote.
Should the merger be denied because of its impact on Native Americans?
Let’s just make a deal, after every 1,023 days the railroads are merged, they have to unmerge for one day.
I’m gonna go get me a, a beer.
The “wedding cake” must be preserved in the freezer a little longer.
What’s not in the public interest is a half-wit communist sitting in the senate.
One minor “terminology” modification, she is a died in the wool card carrying, MARXIST, a power hungry, mean, disgusting and angry person hated by most who know or deal with her. All the more reason to commence the merger.
What Howard Fine said……
Any better then the quarter wit in Florida?
The only that would be against the publics interest is all these politicians weighing in something that has nothing to do with their territory or their job.
Industry consolidation has NOT been in the nation’s interest. Service quality has deteriorated, shippers pay higher rates which directly affect consumers.
The only beneficiaries have been hedge funds and executives.
To Greg Spindler: This is an end-to-end merger not a merger to cannibalize railroad assets. Its advantage is through route service that will enhance competition, not restrict it.
To Howard Fine: Yes, just like when Union Pacific merged with Western Pacific, Missouri Pacific and Southern Pacific. They kept their first name, “Union” and added the other lines last name, “Pacific.”
No merger is an equal merger. Someone always loses and in this case it will be the employees of KCS and the customers they cultivated. The only reductions at CP will be by death or retirement thanks to their socialist government that gives them a job for life. Not the same in the US.