STB receives first letters of support for CP-NS merger (2/1/2016)


The U.S. Surface Transportation Board (STB) has begun to receive letters from rail customers who are in favor of Canadian Pacific's proposed takeover of Norfolk Southern Corp.

Dakota Plains Holdings Inc. and multiple other shippers wrote last month to the STB to say they support CP's proposal to acquire NS. Until last week, most of the letters written to the STB were sent in opposition to the CP-NS merger.

"Dakota Plains believes a CP-NS combination will create a transcontinental railroad with the scale and reach to deliver improved levels of service to us and enable us to better serve our own customers and communities, while improving safety and enhancing competition," stated the letter written by Gabe Claypool, president and chief operating officer of Dakota Plains.

CP has made three offers to acquire NS, which has rejected all three proposals. Nothing yet has been filed with the STB; however, interest in the proposed merger has been so strong that the board began posting letters it receives on the matter to its website.

Source: Progressive Railroading Daily News