I somehow overlooked this merger back in 2023, but just yesterday I was researching some smaller railroads and came across some interesting articles about the merger.
There have been several threads started in the Trains Magazine forum which explore various aspects of this merger, but I decided to start this thread with the thought that there may be somebody out there besides me who missed this merger when it occurred on April 15, 2023.
Canadian Pacific (CP) and Kansas City Southern (KCS) combined to create Canadian Pacific Kansas City (CPKC), as authorized by the U.S. Surface Transportation Board, creating the first single-line railway connecting Canada, the U.S., and Mexico.
CP completed its $31 billion acquisition of KCS on Dec. 14, 2021. Immediately upon the closing of that acquisition, shares of KCS were placed into a voting trust, which ensured that KCS operated independently of CP during the regulatory review process. On March 15, 2023, the KCS shares were transferred to an affiliate of CP, formally bringing KCS into the CPKC family.
The creation of CPKC was marked in Kansas City by hosting a celebration featuring the driving of the ceremonial Final Spike at the only place where the CP and KCS railroads meet. With its global headquarters in Calgary, Alta., Canada, CPKC is the only railway connecting North America and has unrivaled port access on coasts around the continent, from Vancouver to Atlantic Canada to the Gulf of Mexico to LĆ”zaro CĆ”rdenas on Mexicoās Pacific coast.
While remaining the smallest of the Class 1 railroads by revenue, the new combined company operates approximately 20,000 miles of rail and employs nearly 20,000 workers.
Based upon AARās classification, there are six. There is no mention of Amtrak class I status here, but there is for freight railroads:
It is somewhat specious to use a ārevenueā definition for an operation that loses billions of dollars a yearā¦
(Incidentally, there is a terrifying number in there: according to AAR, Amtrak has nearly half again as many employees as all 6 Class I freight railroads togetherā¦)
You might be in some trouble there. Here is the actual STB page regarding the reason for assigning Class I status.
Where are the necessary R-1 forms for Amtrak?
Where is the determination of ārevenue adequacyā under 49CFR10704(a) for Amtrak? See also 49CFR1201 and 1243.2 and the STB section on revenue adequacy under the āRevenues and Earningsā tab.
Do you actually have a reference from the STB where it says they consider Amtrak an actual Class I in these senses?
Iām asking you to find a statement from the STB that they actually consider Amtrak a Class I railroad for STB purposes.
I donāt care about Wiki or AI saying āwell, it sure would be a Class I if it hauled freight instead of passengersā. We already know AAR does not call Amtrak a class I, to which you replied by citing the STB. It is time to show where the STB says it is.
A footnote on the bottom of page 2 states that Amtrak is considered a Class I carrier, but that the ICC waived the requirements for Amtrak to file annual reports.
I donāt think so. As any lawyer knows, the burden of proof is on the plaintiff.
Letās say that I state that the Dearborn Station complex in downtown Chicago covered a 4 block by 7 block space. You say, Not true. I reply, Sure it is. You counter with, Prove it.
I could, but I donāt have to. You have to prove otherwise to me to win your case.
It is time for you to show where the STB does not consider Amtrak a Class I railroad.
The Surface Transportation Board (STB) is an independent federal agency that has broad economic and regulatory oversight over all railroads in the United States. The STB determined the classes of railroads based upon annual revenue.
The Association of American Railroads (AAR), on the other hand, is an industry trade group that represents the major freight railroads of North America.
So, it makes sense that the AAR would not consider Amtrak as a Class I freight railroad because Amtrak is a passenger railroad. Its only members are freight railroads. The AAR does not determine the classes of railroads.
Thanks for pointing that out, Penny. I am mostly a model railroader still trying to learn as much as I can about the history of the railroads. I did, indeed, miss the announcement of the 2023 merger, and it was the CPKC IT integration problems thread in the Trains forum that prompted me to research the merger. Thatās what I find so interesting and helpful personally about the Classic Trains forum. I have been starting some threads here on the various railroads, past and present, and then learn from other forum members replies and experiences.
The biggest thing that you missed was the bidding war between CP and CN to purchase KCS. KCS first announced a merger deal with CP. Once CN upped the ante by about $2 billion, KCS tore up the deal with CP and made one with them. The STB then made a few critical decisions that eventually tipped the balance in CPās favor. It was a real nail biter that lasted about 5 months.
