Analyst Predicts CP-KC Southern Coupling Will Stay on the Rails

If Canadian Pacific’s purchase of Kansas City Southern for 25 billion dollars is approved, it’ll result in the creation of the first rail network that will connect the U.S., Mexico and Canada. The deal announced last weekend will need approval from the U.S. Surface and Transportation Board before the acquisition can become official. Railway analyst Howard Greene predicts that the coupling of North America’s two smallest Class One railroads will be approved.

The two companies highlighted the environmental points of their deal, saying the new single-line routes will cut emissions, as rail is four times more fuel efficient than trucking.

The combined company will operate under the name Canadian Pacific Kansas City, with headquarters in Calgary and its U.S. operations based in Kansas City. Currently the two companies’ networks only meet in KC. If approved, the company’s rail network will extend across Canada from Vancouver to New Brunswick, and through the Midwest to Gulf of Mexico ports. It would also stretch south to Mexico City.