DeFazio Opposes Proposed Canadian National-Kansas City Southern Merger

U.S. Rep. Peter DeFazio, D-Oregon, sent a letter to the Surface Transportation Board (STB) opposing the approval of a trust for the proposed merger of the Canadian National (CN) and Kansas City Southern (KCS) railroads.

In his letter, DeFazio, chair of the House Committee on Transportation and Infrastructure, said that approving the trust is not in the public interest and would reduce competition.

“A single holding company responsible for this traffic would likely change rail traffic patterns in the significant areas of parallel service overlap and that would reduce the rail service options these 300 customers currently enjoy,” DeFazio wrote in his letter. “I am also troubled that this combination of Class I railroads serving all three nations in North America will exacerbate U.S. job losses from cross-border trade agreements that prioritize profits over people and inflict harm on worker’s rights, consumer safety, and the environment.”

In April 2021, DeFazio issued a statement after Canadian Pacific (CP) and CN made separate multi-billion dollar offers to buy KCS, warning that the bidding war that ensued for the railroad threatened to usher in a new round of consolidations in the rail sector, ultimately threatening jobs and affecting shipping in the U.S.

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