Canadian Pacific Kansas City Rules Out Immediate Rail Industry Consolidation Citing Customer Supply Chain Risks

Canadian Pacific Kansas City (CPKC) has firmly stated it is not interested in participating in immediate rail industry consolidation, despite ongoing merger activity among competitors like Union Pacific and Norfolk Southern. CPKC emphasized that the current network of six major North American railroads is capable of providing high-quality, near-seamless transportation services, and that further consolidation is unnecessary and potentially harmful. CPKC President and CEO Keith Creel warned that a transcontinental merger could trigger a permanent restructuring leading to a disproportionately large railway, which would likely provoke an unnecessary wave of additional mergers with risks to customers, employees, and the broader supply chain. Instead, CPKC advocates for interline partnerships and alliances, which can deliver many of the benefits of mergers without the risks of integration. The company highlighted its ongoing collaborations, such as those with CSX, as examples of how cooperation can improve service while preserving competition and options for shippers. This stance comes amid industry speculation and recent statements from major players like Warren Buffett, who has ruled out a competitive bid for CSX in response to Union Pacific's proposed acquisition of Norfolk Southern.