Canadian Pacific buying Kansas City Southern?

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crescent-zephyr

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With regard to the Keystone pipeline comments, are you saying that this new railroad will be carrying oil because the pipeline was nixed?
Well KCS and CP already carry oil. I’m willing to bet that the pipeline cancellation “fueled” (pun intended) this sale. CP knows they’ll be running lots of oil trains on this route anyway... why not buy out the whole route!

I personally don’t think we should allow foreign companies to own major infrastructure but nobody asked me.
 
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I personally don’t think we should allow foreign companies to own major infrastructure but nobody asked me.
Here's one point of view on the matter...it is rather enlightening, although a responder disagrees, calling it an uninformed 'protectionist view'...
One of the industries protected from majority foreign ownership, under the 'national security provision', is airline ownership...
 

jiml

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Here's one point of view on the matter...it is rather enlightening, although a responder disagrees, calling it an uninformed 'protectionist view'...
One of the industries protected from majority foreign ownership, under the 'national security provision', is airline ownership...
I personally think Canada and the US should be functioning more like the European Union, given the long history, undefended border, etc. They've cooperated for years on free exchange of some goods, defense and other issues, but seldom has political leadership in the two countries aligned for long enough to solidify some of these relationships. Protectionist sentiments exist on both sides and prior to the recent US election were even fuelled by our federal government and comparisons with the previous US president were used to slam more conservative opponents across the country. That said, there is a long history and many examples of US ownership of Canadian companies and vice-versa, so that ship has probably sailed in the case of this merger. If it fails it likely won't be due to "foreign" ownership.

Your point about the airlines is a good one too, and also applies in the reverse. American Airlines tried to acquire controlling interest of their failing partner, Canadian Airlines, until the feds stepped in. It was portrayed at the time as being in the "national interest", but opinions were certainly mixed. In the period immediately prior the two companies were basically operating as one, going well beyond the usual "codeshare" model.

Where the two countries need a combined protectionist outlook is when buyers represent a country that is untrustworthy or has a proven record of hostility or aggression. For example, we're still awaiting a final decision to reject Huawei as the vendor of 5G infrastructure, despite pleas from all our allies.
 

Willbridge

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We have a long shared history in rail and steamship operations in all of the Americas. The exceptions, such as Mexican nationalization or the end of through tariffs with the advent of Amtrak and VIA Rail haven't benefited consumers/shippers.

In the Vietnam war there were Canadians who wanted the government to stop U.S. shipments of military vehicles across Canadian borders. The government refused to do that because in World War 1 Canada had run troop trains across neutral U.S. borders.
 

jis

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Another trivia footnote if/when the acquisition completes is that CP will inherit 50% of the Panama Canal Railway, who operate some interesting passenger stock and are one of very few railways to operate F40's in freight service - a mix of ex-Amtrak and GO Transit units.
Been there and done that. Interesting trip in the Dome. I guess the only railway that runs a through Atlantic to Pacific service, or well, the other way round if one starts from Panama City.
 
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Been there and done that. Interesting trip in the Dome. I guess the only railway that runs a through Atlantic to Pacific service, or well, the other way round if one starts from Panama City.
Just read your post, and curiosity led me to the Trip Advisor site on this railway...some great interior shots of the former SP home built dome lounge used...:cool:

 

jis

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Just read your post, and curiosity led me to the Trip Advisor site on this railway...some great interior shots of the former SP home built dome lounge used...:cool:
All in the Family.....

CP recently rebuilt a former SP home-built Dome for the Business Car fleet...

 
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All in the Family.....

CP recently rebuilt a former SP home-built Dome for the Business Car fleet...

Nice article, thanks for posting. I'm sure the rebuild has resulted in a very nice ultra-plush lounge car, but as I have noted in several previous posts, I am not a fan of that unique layout, among other full length (or "3/4" length) dome cars. While the "cathedral ceiling" is a nice feature, I don't like the fact that everyone passing thru the car must climb up into and thru the dome, and then back down at the other end. There is no lower level pass-thru, like the other's have.
But the worst thing about those cars, is the "rifle-slot" front and rear windows with their high bulkheads, that are almost impossible to see anything but the sky through. Give me a Budd, ACF, Pullman, or St. Louis Car, short dome, any day, over that one...;)
 

jis

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Perhaps we will see a "City of Mexico City and New Orleans."
If CN gets it then the train will consist of four passenger cars and 18 baggage cars to meet the enhanced axle count requirements for the longer distance of worse maintained track and signal infrastructure 🤪
 

jiml

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I had thought a US Class 1 would have made a counter-proposal (looking at you BNSF) and still wouldn't rule that out. That said, my understanding was that CP and KCS actually have a deal in place pending approvals. This could simply be a fishing expedition.
 

NSC1109

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I had thought a US Class 1 would have made a counter-proposal (looking at you BNSF) and still wouldn't rule that out. That said, my understanding was that CP and KCS actually have a deal in place pending approvals. This could simply be a fishing expedition.
KCS/CP deal doesn’t mean anything. The KCS board has a fiduciary duty to pursue the best deal for the shareholders, and if that ends up being CN instead of CP then it’ll be CN/KCS.
 

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A little background to this Monopoly version of Adult Toy Railroads:


Bloomberg
Century-Old Rail Rivalry Flares Up, Now Over a $30 Billion Prize
Kevin Orland 2 hrs ago
Century-Old Rail Rivalry Flares Up Over a $30 Billion Prize
https://twitter.com/share?url=http://a.msn.com/00/en-us/BB1fRCY2?ocid=st&text=Century-Old+Rail+Rivalry+Flares+Up,+Now+Over+a+$30+Billion+Prize&original_referer=http://a.msn.com/00/en-us/BB1fRCY2?ocid=st
https://web.whatsapp.com/send?text=http://a.msn.com/00/en-us/BB1fRCY2?ocid=sw

CP - Stock quote for CANADIAN PACIFIC RAILWAY LIMITED - MSN Money


(Bloomberg) -- Canadian National Railway Co.’s bid to wrest Kansas City Southern away from Canadian Pacific Railway Ltd. is rekindling a century-old rivalry and pitting former colleagues against each other.

The $30 billion takeover fight sees Canadian National Chief Executive Officer Jean-Jacques Ruest attempting to grab a prize long sought by Canadian Pacific CEO Keith Creel, who once served alongside him as Canadian National’s chief operating officer. It’s one of the biggest railway deals of the past two decades, with the winner gaining control of a sprawling network that crosses the three countries in North America’s trade alliance.
Century-Old Rail Rivalry Flares Up, Now Over a $30 Billion Prize (msn.com)

MODERATOR NOTE: edited because of copyright rules
 

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