CANADIAN Pacific (CP) and Kansas City Southern (KCS) will officially combine to create Canadian Pacific Kansas City (CPKC) on April 14, becoming North America’s first transnational railway connecting Canada, the United States and Mexico.

This follows the US Surface Transportation Board’s final decision on March 15 approving the combination. CP completed its $US 31bn acquisition of KCS on December 14 2021. KCS shares were immediately placed in a voting trust that has ensured that KCS operates independently of CP during the regulatory review process and until CP exercises control of KCS and the voting trust is dissolved.

Meanwhile CPKC’s executive leadership team is now in place. Mr Keith Creel, currently CP president and CEO, will become president and CEO of CPKC. Mr Pat Ottensmeyer, KCS president and CEO, will continue as an advisor to Creel through the remainder of 2023 to ensure continuity on key initiatives predominantly involving the combined company and Mexico.

New team

Subject to formal appointment by the new company’s board of directors, CPKC has named the following people as executive vice-presidents:

  • Mr Nadeem Velani, CFO,
  • Mr John Brooks, chief marketing officer
  • Mr Mark Redd, COO
  • Mr John Orr, chief transformation officer
  • Mr James Clements, strategic planning and technology, and
  • Mr Jeff Ellis, chief legal officer and corporate secretary.

While remaining the smallest of the six US Class 1 railways by revenue, CPKC will operate a network of approximately 32,000km and employ close to 20,000 people. Full integration of CP and KCS is expected to take three years to complete.

CPKC plans capital investments in new infrastructure of more than $US 275m over the next three years to improve the safety and capacity of the core north-south CPKC main line between Louisiana and the Upper Midwest. CPKC says it will support the expansion of Amtrak and other passenger services on its network.