Kansas City Southern de Mexico

Viewpoint: Greenlight the pro-shipper CP-KCS combination

A composite image consisting of a three photos. On the left is a man, and in the middle is a Canadian Pacific locomotive and on the right is a Kansas City Southern locomotive.

Dennis Manns is the executive vice president of North Motors Group, which advises automotive OEMs and logistics supplier groups. The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates. 

By Dennis Manns

It is an important time for rail customers to think critically and play the long game. Recently, Canadian Pacific (NYSE: CP) announced that it would acquire Kansas City Southern (NYSE: KSU) [KCS], triggering review by the

https://www.freightwaves.com/news/viewpoint-greenlight-the-pro-shipper-cp-kcs-combination

5 Wall Street impressions about proposed CP-KCS merger

A photograph of a Kansas City Southern locomotive.

Canadian Pacific (NYSE: CP) announced plans to acquire Kansas City Southern (NYSE: KSU) for $29 billion on Sunday morning. Here are five initial impressions from Wall Street transportation analysts about this proposed transaction.

Wall Street likes the deal

The merger of CP and Kansas City Southern (KCS) would be combining two of the smallest Class I railroads. It would also be integrating two railroads that are striving to reach an operating ratio (OR) in the mid-50s. OR, represented in a...

https://s29755.pcdn.co/news/5-wall-street-impressions-about-proposed-cp-kcs-merger

Surface Transportation Board chair weighs in on proposed mergers

A composite image of two train locomotives. On the left is CP and on the right is KCS.

Surface Transportation Board (STB) Chairman Martin J. “Marty” Oberman provided glimpses Tuesday into how the agency will consider two proposed acquisitions: CSX’s (NASDAQ: CSX) plan to purchase New England short line Pan Am Railways and Canadian Pacific’s (NYSE: CP) goal of merging with Kansas City Southern (NYSE: KSU).

The board expects to treat the proposed CP-Kansas City Southern (KCS) merger as a “major” transaction.This acquisition would be “the first major transaction to seek board...

https://s29755.pcdn.co/news/surface-transportation-board-chair-weighs-in-on-proposed-mergers

Railroad megamerger could be boom for shippers

A composite image consisting of two photographs. On the left is a Kansas City Southern locomotive and on the right is a Canadian Pacific locomotive.

Canadian Pacific’s (NYSE: CP) proposed acquisition of Kansas City Southern (NYSE: KSU) will result in new service lanes across North America, the heads of both companies asserted in a Sunday afternoon call to investors explaining the proposed transaction.

Both companies announced Sunday morning that CP would seek to acquire KCS in a deal worth $29 billion, pending approval from the Surface Transportation Board. The U.S. agency could finish its review process in mid-2022.

The merger would connect...

https://s29755.pcdn.co/news/railroad-megamerger-could-be-boom-for-shippers

Breaking News: Canadian Pacific intends to acquire Kansas City Southern

A photograph of a Kansas City Southern train.

Canadian Pacific (NYSE: CP) and Kansas City Southern (NYSE: KSU) are planning to merge in a deal worth US$29 billion. CP says the acquisition will “create enhanced competition and better service for customers” while also fostering North American economic growth. 

The acquisition will include an assumption of $3.8 billion in outstanding Kansas City Southern (KCS) debt. The merger also has the unanimous support of both boards of directors, according to CP.

The approval is pending approval from the S...

https://s29755.pcdn.co/news/breaking-canadian-pacific-intends-to-acquire-kansas-city-southern

FreightWaves Classics: The Port of Laredo is #1 inland port in U.S.

Port Laredo finished fourth overall during 2020 among the nation’s 450 international gateways for trade. (Photo: FreightWaves staff)

In Chapter 1 of this series on America’s ports, the Port of Boston was featured. The Port of Boston is the oldest seaport in the United States. To read that article, please follow this link. 

In Chapter 2, a different type of port will be profiled. 

U.S.-Mexico border in Texas

The Texas-Mexico border runs for 1,254 miles and is the longest border of any state with the nation of Mexico. According to the Office of the Texas Comptroller, ports of entry within Texas accounted for nearly $740 billion...

https://s29755.pcdn.co/news/freightwaves-classics:-the-port-of-laredo-is-#1-inland-port-in-us

Kansas City Southern eyes lower operating ratio

A photograph of a Kansas City Southern train in a rail yard.

Kansas City Southern (NYSE: KSU) expects to execute the third phase of its version of precision scheduled railroading (PSR) this year in a bid to lower the company’s operating ratio (OR) to the mid-50s by 2022.

PSR is an operational tool that almost all of the Class I railroads deployed to streamline operations. Kansas City Southern (KCS) adopted PSR in 2019. Investors use OR to gauge the financial health of a company, with a lower OR implying improved health. OR is a company’s operating...

https://www.freightwaves.com/news/kansas-city-southern-eyes-lower-operating-ratio

Kansas City Southern’s Q4 net income rises 30%

A photograph of a Kansas City Southern train traveling through a grassy field.

Kansas City Southern’s (NYSE: KSU) net profit for the fourth quarter of 2020 rose 30% over a year ago despite a 5% decline in revenue.

Fourth-quarter 2020 net income was $165.7 million, or $1.80 per diluted share, compared with $127.2 million, or $1.30 per diluted share, for the fourth quarter of 2019. 

Revenue totaled $693.4 million, compared with $729.5 million year-over-year. Revenue gains for Kansas City Southern’s (KCS) chemical and petroleum segment and its agricultural and minerals segment...

https://www.freightwaves.com/news/kansas-city-southerns-q4-net-income-rises-30

COVID-19 uncertainties, PSR part II: What’s on the minds of rail execs

A photograph of a Kansas City Southern train in a rail yard.

Train lengths, e-commerce and mergers and acquisitions were among the topics discussed by four Class I railroads at the Credit Suisse 8th Annual Industrials Conference last week. Here are some highlights:

Kansas City Southern talks service design adjustments, longer sidings

Kansas City Southern (NYSE: KSU) hopes to implement the third phase of its PSR program in 2021.

Although this phase could be the most challenging, it also could be the most rewarding, according to Sameh Fahmy, executive vice...

https://www.freightwaves.com/news/covid-19-uncertainties-psr-part-ii-whats-on-the-minds-of-rail-execs

Rail blockade ends in Mexico after 60 days of protests

A record-breaking rail blockade that cost the Mexican economy more than $140 million in lost trade has ended after almost two months.

The end of the blockade has freed key rail lines connecting to the Mexican seaport of Lázaro Cárdenas on the Pacific coast that had been disrupted since late September.

Officials with Mexico’s Ministry of the Interior said on Monday they reached an agreement to sit down with teachers from the National Coordinator of Education Workers Union of Michoacán (CNTE) to...

https://www.freightwaves.com/news/rail-blockade-ends-in-mexico

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