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Thursday, March 28, 2024

Canadian Pacific and CSX end merger talks

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North American freight operator Canadian Pacific (CP) and CSX have ended “exploratory conversations” surrounding a potential merger.

Although no specific reason was given, CP has issued a statement in which it said that no further talks are currently planned.

CP said it had proposed “an integrated coast-to-coast combination that would improve customer service, promote competition, alleviate congestion in North America – specifically the key Chicago gateway – and generate significant shareholder value”.

Adding: “While regulatory concerns appear to be a major deterrent for many railroads considering combinations, CP believes that given the right structure between the right players, and having thoughtful considerations and remedies to address shipper concerns, regulatory approvals are achievable.

“The North American rail industry is confronted today with the challenges of moving more freight than ever and the prospect of moving even more as oil production, crop yields and consumer demand grow alongside the economy.

“CP is convinced that the significant problems that beset the industry now will only worsen over time if solutions aren’t put in place immediately. A pro-competition, customer-friendly, safety-focused railway combination is one such solution that could not be ignored on its merits by regulators.”

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