Market Herald logo

Subscribe

Be the first with the news that moves the market
  • CN’s (CNR) JJ Ruest and KCS’ Pat Ottensmeyer emphasized the supply chain and environmental benefits of the CN-KCS transaction in a co-authored op-ed
  • The Hill published the op-ed titled, “Rail merger is key to economic growth, supply chain security”
  • They underscored that the combination will enhance competition and support the economies of the United States, Mexico and Canada, allowing the US-Mexico-Canada Agreement to reach its full potential
  • Ruest and Ottensmeyer also highlighted key environmental benefits the combination will deliver to customers and communities
  • The op-ed also advocated for the approval of CN-KCS’ proposed plain vanilla voting trust
  • CN is up 0.47 per cent and is trading at C$131.16 at 11:41 am ET

CN’s (CNR) JJ Ruest and KCS’ Pat Ottensmeyer co-authored an op-ed emphasizing the benefits of the CN-KCS combination.

In the op-ed, Ruest and Ottensmeyer articulated how the combination of CN and KCS will supply critical infrastructure to shorten supply chains.

They underscored that the combination will enhance competition and support the economies of the United States, Mexico and Canada, allowing the US-Mexico-Canada Agreement to reach its full potential: “Our track would directly connect Detroit to the heart of Mexico, giving U.S. manufacturers more competitive routes and the ability to create U.S. jobs as they meet new domestic and regional content requirements under the USMCA.”

Ruest and Ottensmeyer also highlighted key environmental benefits the combination will deliver to customers and communities: “For a single route, from San Luis Potosi, Mexico, to Detroit, Mich., moving freight from trucks to trains would save 260,000 tons of CO2 per year. Multiply that across multiple routes and years, and the impact would be significant.”

The op-ed also advocated for the approval of CN-KCS’ proposed plain vanilla voting trust.

The voting trust is identical to the CP trust approved by the STB and meets the test for approval if it prevents premature control of KCS, and allows KCS to maintain independence during the STB’s review of the ultimate combination of CN and KCS.

CN 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.

Headquartered in Kansas City, Mo., Kansas City Southern is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south-central U.S.

CN is up 0.47 per cent and is trading at C$131.16 at 11:41 am ET.

More From The Market Herald

" NFI Group (TSX:NFI) subsidiary ADL delivers 1000th BYD ADL electric bus

NFI Group (NFI) subsidiary Alexander Dennis Limited (ADL) has delivered its 1000th zero-emission bus.
Bombardier - Vice President of Customer Support, Anthony Cox (first from left).

" Bombardier (TSX:BBD.A) increases maintenance and repair capacity near Paris

Bombardier (BBD.B) has increased maintenance and repair capacity at its Le Bourget Line Station.
BlackBerry Limited - Vice President of Products and Strategy, Grant Courville.

" BlackBerry (TSX:BB) operating system receives safety certification in Europe

BlackBerry’s (BB) QNX® OS has been certified by the European Electrotechnical Committee for Standardization (CENELEC) for use in the railway industry.

" The Limestone Boat Company (TSXV:BOAT) closes private placement of unsecured debentures and announces additional offering

The Limestone Boat Company (BOAT) has closed a non-brokered private placement of debentures for gross proceeds of $340,000.