Newspaper article The Canadian Press

CP Rail Says Norfolk Southern Merger Required to Support Economic Growth

Newspaper article The Canadian Press

CP Rail Says Norfolk Southern Merger Required to Support Economic Growth

Article excerpt

CP Rail issues report on proposed merger

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MONTREAL - Canadian Pacific Railway has issued a report saying railway mergers are required to support growth in the North American economy.

Changing the status quo is necessary to increase capacity to meet increased demand, the Calgary-based railway argued in a report released Tuesday as it continues to pursue a takeover of Norfolk Southern Railway.

"The status quo is not an option for North American rail," it wrote. "Change is necessary to support continued economic growth and that change needs to happen now."

CP Rail (TSX:CP) said industry consolidation can improve the efficiency of the existing network and increase capacity without adding new tracks and terminals that are often resisted by local communities.

The proposed merger with Norfolk Southern would do that while relieving congestion in Chicago, a major hub that carries about 25 per cent of all rail traffic. …

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