Article

2021-03-23 Economy

Canadian Pacific Railway to buy Kansas City Southern for US$25 billion

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Posted by Fred 2021-03-23 00:00|| || Front Page|| [9 views ] Top

#1 The Canadian National Railway has owed the Illinois Central Railroad (founded 1851) for twenty years, giving it access to Sioux City, Omaha, Mobile, and New Orleans. But the KCS has long resisted mergers.

Posted by Bobby 2021-03-23 07:54|| 2021-03-23 07:54|| Front Page Top

#2 And CP is not a starry-eyed disciple of PSR; rather building volume over time for more revenue,even if that means a bit of loss at first. Suggest UP, CSX and NS start taking notes.

Posted by USN, Ret. 2021-03-23 09:06|| 2021-03-23 09:06|| Front Page Top

#3 Any thoughts on the future of BNSF?

Posted by Xyz 2021-03-23 10:19|| 2021-03-23 10:19|| Front Page Top

#4 Somewhere in the backstory i wonder if the Keystone Pipeline decision by Bidet et al doesn't have a financial thread in this since all the oil now returns to tanker cars?

Posted by NoMoreBS 2021-03-23 12:03|| 2021-03-23 12:03|| Front Page Top

#5 CP is looking for access primarily to the Gulf region...KCS's Mexican routes are icing on the cake.

Posted by Heavy G 2021-03-23 12:06|| 2021-03-23 12:06|| Front Page Top

#6 i wonder if the Keystone Pipeline decision by Bidet et al doesn't have a financial thread in this since all the oil now returns to tanker cars?

Elsewhere in pipeline news:
Gov. Gretchen Whitmer is moving to shut down Line 5 by revoking and ending a 1953 easement that allows Enbridge Energy to run the dual pipeline through the Straits of Mackinac.

Line 5 carries about 540,000 barrels of fuel daily, which includes 80% of the propane used in Michigan's Upper Peninsula. Whitmer's 2022 budget includes $17 million to upgrade rail facilities and build storage tanks at railheads. The shutdown order says May 13 is the cutoff date. Despite enviro fears of a pipeline apocalypse, Line 5 has been in operation 65 years without incident.

Might be an interesting time to watch railroad stocks.

Posted by SteveS 2021-03-23 18:12|| 2021-03-23 18:12|| Front Page Top

#7 Especially if crony capitalist Warren Buffett is involved like he was with Obama and that railroad gig.

Posted by Clem 2021-03-23 19:26|| 2021-03-23 19:26|| Front Page Top

#8 Presidential Executive Order already in the pipeline, coordination with a friendly Governor, and people who own railroad stock suddenly get very rich. This is how Democrats get rich, how the Big Guy and his family will get kickback that is well insulated from view, and why big money managers are now all diehard progressives. You get rich by fixing the game and letting the rubes pay you for it! Bastards

Posted by NoMoreBS 2021-03-23 20:14|| 2021-03-23 20:14|| Front Page Top

#9 The crony capitalist and all-around bullshit artist, Warren Buffett, is the son of a congresscritter.

"Moat" is his term for a monopoly provider that's protected from competition by legislative favoritism

Posted by Clomogum Slemp5624 2021-03-23 22:32|| 2021-03-23 22:32|| Front Page Top

#10 re#3: BNSF never bought into PSR and are doing quite well; they also are eating UP's lunch on carload traffic as well as some oil business. Being privately owned, they don't have to suck up to the Wall Street short term investor mentality. I was expecting BNSF or maybe UP to make the run on KCS, not CP.

Posted by USN, Ret. 2021-03-23 22:40|| 2021-03-23 22:40|| Front Page Top

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