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.
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