The CN–KCS Combination Creates Competitive Advantage for Customers
More than 1,750 support letters have been written by customers and stakeholders to the Surface Transportation Board (STB). There are four compelling reasons why:
Today, customers across the continent must use a combination of railroads just to ship their goods from point A to point Z. Each time they interchange to a different railroad, it adds time and cost. Our combination will eliminate interchanges between rail carriers on many routes, such as Detroit to Mexico City, saving an estimated 24 to 36 hours for every interchange that is avoided. It’s like catching a direct flight instead of hopping from airport to airport across the continent. Reduced transit time means increased reliability, shorter equipment cycle times and, ultimately, fewer railcars needed to move the same amount of product.
We have made detailed commitments to preserve and enhance shippers’ choice. These include divesting the small amount of regional track where CN and KCS overlap, and offering to keep all gateways open on commercially reasonable terms. In practice, the combination of these steps means that all of the routing options that are available today will continue to be available after the merger.
Because we are increasing both speed and choice, many of our joint customers will see meaningful supply-chain cost reductions. The increase in speed translates directly into efficiency cost savings, and the increase in choice creates more negotiation power for the customer. New direct services also create the opportunity to consolidate shipments into high demand markets and give customers the ability to take advantage of scale price discounts for big blocks and unit trains.
Customers in four major regions with have new direct access to millions of consumers in key markets
The CN-KCS combination will create a safer, faster, cleaner and stronger railway and is a direct result of listening and responding to your needs for improved market access and reliable service at competitive costs.
If you have questions or would like to show your support, please reach out to your Account Manager.