Statements of  Commissioners on the proposed consolidation of Canadian Pacific and Kansas City Southern Railways

Federal Maritime Commissioners Carl W. Bentzel, Louis E. Sola, and Max M. Vekich, in their capacity as individual Commissioners, submitted comments Wednesday to the Surface Transportation Board (STB) opposing/objecting to the proposed consolidation of the Canadian Pacific Railway, Ltd. (CP) and the Kansas City Southern Railway (KCS).

The three Commissioners urged the STB to disapprove the CP and KCS consolidation under the provisions of 49 U.S.C. § 11324 (d)(2).

“The proposed consolidation does not ensure that the anticompetitive effects of the transaction outweigh the public interest in meeting significant needs.

We understand that the supply chain is competitive, interdependent, and complex. In our ever-changing world, the shipping industry is constantly working through major operational and cargo-volume challenges to make itself more efficient while maintaining the integrity, security, and fluidity of the supply chain,” the Commissioners stated in the comments submitted to the STB.

Commissioner Bentzel noted that “It is important that the U.S. maintains our infrastructure as well as our operational capabilities. The pandemic reinforced how important these resources are within the global supply chain as well as the impact that they have on local communities, businesses, and jobs.”

Commissioner Sola said that “The consolidation of any limited asset integral to the supply chain merits close examination and the acquisition of such an asset by an enterprise supported, subsidized, or controlled by a foreign power deserves scrutiny.”

Commissioner Vekich stated that “It is imperative that we maximize cargo flow through U.S. ports for the benefit of our stakeholders – especially our ports, waterfront employers, labor, and the related intermodal industries that flourish with the increased cargo volume on American soil.  We must also work to promote competitive and efficient supply chain solutions.”

Carl W. Bentzel, Louis E. Sola, and Max M. Vekich are Commissioners with the U.S. Federal Maritime Commission. The thoughts and comments expressed herein are their own and do not necessarily represent the position of the Commission.