Trains have long been a decent contributor to the American economy, however there’s a chance they will increase their importance in the near future. Canadian Pacific Railway is attempting to buy up Kansas City Southern. Combining both companies’ rail lines would form the first Canadian-US-Mexican rail line, which would open up many land based trade routes and connections between the three countries.

Canadian Pacific Railway’s plan was announced in March 2021. Their plan is to acquire KCS within 10 months. Between the trackage owned by both Canadian Pacific and Kansas City Southern, the routes would cover southern Canada, the middle of the United States, and a decent portion of Mexico.  “The two railroads connect at just one point — Kansas City, Mo., where they have an existing shared facility. The combination will create a system of about 16,400 miles — and operate about 20,000 miles, including trackage and haulage rights — while employing about 20,000 people. It will be the smallest of the six remaining Class I U.S. railroads by revenue, generating revenue of about $8.7 billion based on 2020 figures,” says a brief from Trains.com. 

“Together, CP and KCS will have the ability to deliver enhanced competition and unsurpassed levels of service, safety and economic efficiency for shippers and communities across the U.S., Mexico and Canada,” stated the Future for Freight website.  Several maps available on this website Future For Freight show what will be a handful of what will be positively impacted: grain, intermodal container shipping, and automotive manufacturing related traffic would be increased and effectively easier for international shippers. 

“The transaction will give Canadian Pacific access to the Kansas City, Missouri-based company’s sprawling Midwestern rail network that connects farms in Kansas and Missouri to ports along the Gulf of Mexico. It would also give it reach to Mexico, which made up almost half of Kansas City Southern’s revenue last year, and create the only network that cuts through all three North American countries,” says Gillian Tan and Thomas Black of Bloomberg News.  Mexico is a large producer of automobiles and electronics, as well as a large consumer of  grain, fuel, and other goods – something for which Canadian Pacific can provide transportation. 

“While trains may not be on the forefront of everyone’s mind, most recognize their positive en I think making use of more trains is a great way to move freight,” says Hall’s own Kelly Fransen,   “Get the stuff off the highways and out of the gas guzzling trucks so that we can save some of our environment.  I also think it’s a good idea to have a train that goes straight through so freight can be shipped more easily this way as it no longer has to lose time being moved to other lines or rely on other forms of transportation.”

Apart from moving items between the three countries getting streamlined, this merger brings benefits to more than just the goods being moved. The two companies already meet at and share facilities in Kansas City, Missouri. Instead of freight trains bound for anywhere beyond the city having to stop here and change locomotives, a train could theoretically just roll right through the town for either end of the line or places in between. The two companies also share a philosophy named Precision Scheduled Railroading – PSR for short. Many of its ideals are used to eliminate unnecessary expenses and remain as cost effective as possible, something most railroads need to survive in a modern day setting. With a route as large as theirs would be, having cost saving strategies beforehand would benefit the system after their merger.

Canadian Pacific Railway’s acquisition of Kansas City Southern will revolutionize freight traffic across north america. What are two railroads that meet at one point now could very soon be an international rail network which connects three nations in a beneficial and streamlined way like no other connections before.