Logistics
CEVA Logistics unveils new international road transport center in China
CEVA Logistics unveils new international road transport center in China
DHL says tariff extension fuels more transpacific shipping volatility than help
DP World, Asian Terminals deploy first fleet of electric internal transfer vehicles in the Philippines
DHL Global Forwarding makes leadership appointments in Asia Pacific
International shipping groups condemn Red Sea attacks
DSV opens Singapore's first "positive energy" logistics facility
4RCargo taps Roman Taborsky to lead Austrian air freight operations
DHL Global Forwarding inaugurates new Frankfurt air freight hub
Air Hong Kong now operating all-A330 Freighter fleet
Hong Kong takes center stage at TIACA 2025 Summit
JD Logistics adds first industrial infrastructure in Australia
FedEx names R. Brad Martin as new chairman
Europe-Central Asia rail cargo deliveries rise in Jan–May
Rhenus expands in Southeast Asia with new Singapore air freight gateway
DHL sees opportunity in Indonesia's new energy sector
JD Logistics debuts in Saudi Arabia
Hong Kong maintains 3% export growth forecast despite tariffs
DHL: Early peak season driven by tariff and capacity fluidity
Kuehne+Nagel appoints Marcus Claesson as chief information officer
Alarm bells ring over global truck driver shortages
DHL Group to invest more than €500M in the Middle East
Chengdu-Shenzhen-Hong Kong rail-sea service launches
FedEx boosts APAC healthcare capabilities with CEIV pharma certification
UPS enhances service in Johor, Malaysia to accelerate global delivery
DP World launches logistics hub to accelerate South Africa auto growth
FedEx names new CEO for standalone freight spin-off
Trade policy shifts fuel 20% industrial space growth in Indonesia, Vietnam
DP World to launch US$2.5B logistics infrastructure investment in 2025
DHL Global Forwarding taps Amanda Rasmussen as chief commercial officer
SATS to invest over US$192M to enhance Changi Airport operations
APEC lowers 2025 growth forecast to 2.6%, urges trade policy stability
U.S. slashes ‘de minimis’ tariff on small China parcels to 30%
DHL eCommerce, Evri announce merger to boost parcel delivery network
DHL expands robotics deployment in automation push
U-Freight earns HKAEO accreditation for high security standards
DP World launches first Singapore warehouse, expanding Asian network
PSA BDP takes majority stake in Mexico’s ED Forwarding
DHL acquires US e-commerce logistics company IDS Fulfillment
DHL Global Forwarding makes key appointment in Asia Pacific
Kuehne+Nagel, cargo.one partner to expand digital airline connections
U-Freight sees continued global ecommerce growth despite current risks
deugro Thailand delivers critical reactors for sustainable fuel production
CEVA Logistics signs deal to acquire Borusan Tedarik, expand in Turkey
Port of NY/NJ, WFS opens new US$270M cargo handling center at JFK airport
DP World sources 65% of its electricity from renewables in 2024
UPS boosts healthcare logistics offering with Andlauer acquisition
CN: MERGER WITH KCS WILL SUPPLY CRITICAL INFRASTRUCTURE TO SHORTEN SUPPLY CHAINS
June 30, 2021
67b5ef3c-f612-45cf-9af9-c0074c3a7835

Canadian National Railway Company (CN) and Kansas City Southern (KCS) recently outlined the benefits of its pending merger which is currently awaiting clearance from the Surface Transportation Board (STB). 

 

In an op-ed co-authored by JJ Ruest, president and chief executive officer of CN and Patrick J. Ottensmeyer, president and chief executive officer of KCS, the top executives or the firms highlighted the benefits of the rail merger to economic growth and supply chain security.


Ruest and Ottensmeyer argued how the combination of CN and KCS will supply critical infrastructure to shorten supply chains.

 

They also underscored that the combination will enhance competition and support the economies of the United States, Mexico and Canada, allowing the US-Mexico-Canada Agreement — which earlier replaced the NAFTA deal between the three countries  — to yield its full potential.


“Consider an auto manufacturer in Michigan: 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,” the executives wrote in the op-ed.

 

They noted that other potential beneficiaries include grain farmers in Illinois, Iowa and Wisconsin who would have expanded reach into global markets, as well as ethanol producers in Iowa who would have direct access to markets in Mexico; home-builders in Texas and poultry farmers in Arkansas would benefit from expanded supply networks of lumber and source feed ingredients.


Ruest and Ottensmeyer also highlighted key environmental benefits the combination will deliver.

“For a single route, from San Luis Potosi, Mexico, to Detroit, Michigan, moving freight from trucks to trains would save 260,000 tons of CO2 per year, the equivalent of the average annual emissions of more than 300 long-haul trucks,” they said. “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 (Canadian Pacific Railway) trust approved by the STB and meets the test for approval,” the executives wrote, adding that a clearance prevents premature control of KCS; allows KCS to maintain independence during the STB’s review of the ultimate combination of CN and KCS; and protects KCS’ financial health during this period.

 

KCS announced in May that it is exiting its earlier merger plans with CP noting that CN's offer constitute a “company superior proposal.”

 

CN made a roughly US$30 billion bid for KCS, topping the one offered by its Canadian rival after the railroad operator already agreed to a sale to CP in March — in a roughly US$25 billion deal.

 

Since then, the rail companies have been building their own cases in arguing which deal would end up being more beneficial. 

 

Meanwhile, CN and KCS are currently awaiting for the STB's greenlight of its planned merger.