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CN announced today it intends to ask the Surface Transportation Board (STB) to condition any approval of a Canadian Pacific-Kansas City Southern merger on the divestiture of KCS lines from Kansas City, Missouri, to Springfield and East St. Louis, Illinois, to CN.
CN yesterday informed the STB of its intent to file a responsive application on Feb. 28 in accordance with the board’s schedule for reviewing the CP-KCS merger application.
The Springfield Line is a direct competitive alternative to CP’s route from Kansas City to Chicago, and beyond to Detroit and eastern Canada. CP and KCS have made it clear in their merger application that they plan no investment on the Springfield Line, and instead will de-emphasize it in favor of CP’s existing parallel line, CN officials said in a press release.
Putting the line under CN’s control "represents a major opportunity to improve transportation options, promote rail-to-rail competition, and take many of thousands of long-haul trucks off the road annually through increased rail-to-truck competition," the press release stated.
Specifically, CN would invest at least $250 million in the line, including terminal upgrades; opening new international markets to customers; and preserving existing options by providing KCS access to customers on the line, CN officials said.