CALGARY,
AB and JACKSONVILLE,
Fla. , Oct. 17, 2024 /PRNewswire/ - Canadian
Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC), CSX Corporation
(NASDAQ: CSX) (CSX) and Genesee & Wyoming Inc. (G&W) today
said the Surface Transportation Board (STB) has approved CSX's and
CPKC's respective applications regarding their acquisition of the
rail lines operated by G&W's Meridian & Bigbee Railroad,
L.L.C. (MNBR), which will result in the creation of a new direct
CPKC-CSX interchange connection in Alabama.
Through the now-approved transaction, which was previously
announced in June 2023, CPKC will
acquire and operate across the 52-mile segment between Meridian, Miss., and Myrtlewood, Ala., currently owned by MNBR,
while CSX will operate the lines currently operated by MNBR east of
Myrtlewood. As a result, CPKC and
CSX will establish a direct Class I-to-Class I interchange at or
near Myrtlewood and connect
shippers in Mexico, Texas and the Southeast U.S. MNBR will
continue to provide local service to customers between Meridian and Myrtlewood.
"We thank the Surface Transportation Board members for their
careful consideration of this vision to create a new Class I
corridor providing more efficient service for existing CPKC and CSX
traffic, while introducing new competitive shipping options between
Mexico, Texas and the U.S. Southeast for our
customers," said Keith Creel, CPKC
President and CEO. "With this new east-west Class I route, we are
creating competition, providing a service that will take more
trucks off the road, and growing rail transportation by expanding
markets across the southern U.S., from Dallas to Atlanta and beyond."
"This new interchange with CPKC highlights our ongoing efforts
to provide sustainable rail solutions and service excellence for
our customers," said Joe Hinrichs,
President and CEO of CSX. "Once complete, the interchange will help
drive long-term business growth allowing customers to have greater
connectivity and efficiency to reach key markets in Texas, Mexico, and the U.S. Southeast—all while
providing safe and reliable service."
"This transaction is a win for customers, who benefit from a new
Class I connection in the growing Southeast U.S. and uninterrupted
short line service from MNBR between Myrtlewood, Alabama, and Meridian, Mississippi," said Michael Miller, G&W CEO.
The STB approval is effective Nov. 16,
2024.
Forward looking information
This news release contains certain forward-looking
information and forward-looking statements (collectively,
"forward-looking information") within the meaning of applicable
securities laws in both the U.S. and Canada. Forward-looking information includes,
but is not limited to, statements concerning the parties'
expectations, beliefs, plans, goals, objectives, assumptions and
statements about possible future events, conditions, and results of
operations or performance. Forward-looking information may contain
statements with words or headings such as "financial expectations",
"key assumptions", "will", "anticipate", "believe", "expect",
"plan", "should", "commit", "outlook", "guidance" or similar words
suggesting future outcomes.
This news release contains forward-looking information
relating, but not limited, to agreements between CPKC and CSX,
between CPKC and G&W and between G&W and CSX to create a
new direct interchange connection in Alabama, the anticipated impact of the
agreements on available shipping options for customers, the effects
of the agreements on access to markets in Texas, Mexico
and the southeast U.S., the negotiation of definitive agreements
among the parties, plans and expectations regarding the integration
of a CPKC-CSX interchange, and other related matters associated
with the changes in ownership and/or control, and operation of
segments of the MNBR and assumptions underlying or relating to any
of the foregoing.
The forward-looking information contained in this news
release is based on the parties' current expectations, estimates,
projections and assumptions, having regard to the parties'
experience and the parties' perception of historical trends, and
includes, but is not limited to, expectations, estimates,
projections and assumptions relating to: changes in business
strategies; the fuel efficiency of railways and the parties'
operations; the impacts of existing and planned capital
investments; North American and global economic growth; commodity
demand growth; sustainable industrial and agricultural production;
commodity prices and interest rates; performance of the parties'
assets and equipment; sufficiency of the parties' budgeted capital
expenditures in carrying out the parties' business plans;
geopolitical conditions; applicable laws, regulations and
government policies; the availability and cost of labour services
and infrastructure; the satisfaction by third parties of their
obligations to the parties; carbon markets, evolving sustainability
strategies, and scientific or technological developments; and
capital investments by third parties. Although the parties believe
the expectations, estimates, projections and assumptions reflected
in the forward-looking information presented herein are reasonable
as of the date hereof, there can be no assurance that they will
prove to be correct. Current conditions, economic and otherwise,
render assumptions, although reasonable when made, subject to
greater uncertainty.
Undue reliance should not be placed on forward-looking
information as actual results may differ materially from those
expressed or implied by forward-looking information. By its nature,
CPKC's forward-looking information involves inherent risks and
uncertainties that could cause actual results to differ materially
from the forward looking information, including, but not limited
to, the following factors: changes in business strategies and
strategic opportunities; general Canadian, U.S., Mexican and global
social, economic, political, credit and business conditions; risks
associated with agricultural production such as weather conditions
and insect populations; the availability and price of energy
commodities; the effects of competition and pricing pressures,
including competition from other rail carriers, trucking companies
and maritime shippers in Canada,
the U.S. and Mexico; North
American and global economic growth and conditions; industry
capacity; shifts in market demand; changes in commodity prices and
commodity demand; uncertainty surrounding timing and volumes of
commodities being shipped via CPKC; inflation; geopolitical
instability; changes in laws, regulations and government policies,
including regulation of rates; changes in taxes and tax rates;
potential increases in maintenance and operating costs; changes in
fuel prices; disruption in fuel supplies; uncertainties of
investigations, proceedings or other types of claims and
litigation; compliance with environmental regulations; labour
disputes; changes in labour costs and labour difficulties; risks
and liabilities arising from derailments; transportation of
dangerous goods; timing of completion of capital and maintenance
projects; sufficiency of budgeted capital expenditures in carrying
out business plans; services and infrastructure; the satisfaction
by third parties of their obligations; currency and interest rate
fluctuations; exchange rates; effects of changes in market
conditions and discount rates on the financial position of pension
plans and investments; trade restrictions or other changes to
international trade arrangements; the effects of current and future
multinational trade agreements on the level of trade among
Canada, the U.S. and Mexico; climate change and the market and
regulatory responses to climate change; anticipated in-service
dates; success of hedging activities; operational performance and
reliability; customer and other stakeholder approvals and support;
regulatory and legislative decisions and actions; the adverse
impact of any termination or revocation by the Mexican government
of Kansas City Southern de México, S.A. de C.V.'s Concession;
public opinion; various events that could disrupt operations,
including severe weather, such as droughts, floods, avalanches and
earthquakes, and cybersecurity attacks, as well as security threats
and governmental response to them, and technological changes; acts
of terrorism, war or other acts of violence or crime or risk of
such activities; insurance coverage limitations; material adverse
changes in economic and industry conditions, including the
availability of short and long-term financing; the pandemic created
by the outbreak of COVID-19 and its variants and resulting effects
on economic conditions, the demand environment for logistics
requirements and energy prices, restrictions imposed by public
health authorities or governments, fiscal and monetary policy
responses by governments and financial institutions, and
disruptions to global supply chains; the realization of anticipated
benefits and synergies of the Canadian Pacific Railway Limited (CP)
- Kansas City Southern (KCS) transaction and the timing thereof;
the satisfaction of the conditions imposed by the U.S. Surface
Transportation Board in its March 15,
2023 final decision; the success of integration plans for
KCS; the focus of management time and attention on the CP-KCS
transaction and other disruptions arising from the CP-KCS
integration; estimated future dividends; financial strength and
flexibility; debt and equity market conditions, including the
ability to access capital markets on favourable terms or at all;
cost of debt and equity capital; improvement in data collection and
measuring systems; industry-driven changes to methodologies; and
the ability of the management of CPKC to execute key priorities,
including those in connection with the CP-KCS transaction. The
foregoing list of factors is not exhaustive. These and other
factors are detailed from time to time in reports filed by CPKC
with securities regulators in Canada and the
United States. Reference should be made to "Item 1A - Risk
Factors" and "Item 7 - Management's Discussion and Analysis of
Financial Condition and Results of Operations - Forward-Looking
Statements" in CPKC's annual and interim reports on Form 10-K and
10-Q.
About CPKC
With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line
transnational railway linking Canada, the United
States and México, with unrivaled access to major ports from
Vancouver to Atlantic Canada to the Gulf of México to
Lázaro Cárdenas, México. Stretching approximately 20,000 route
miles and employing 20,000 railroaders, CPKC provides North
American customers unparalleled rail service and network reach to
key markets across the continent. CPKC is growing with its
customers, offering a suite of freight transportation services,
logistics solutions and supply chain expertise. Visit
cpkcr.com to learn more about the rail advantages of CPKC.
CP-IR
About CSX
CSX, based in Jacksonville,
Florida, is a premier transportation company. It provides
rail, intermodal and rail-to-truck transload services and solutions
to customers across a broad array of markets, including energy,
industrial, construction, agricultural and consumer products. For
nearly 200 years, CSX has played a critical role in the nation's
economic expansion and industrial development. Its network connects
every major metropolitan area in the eastern United States, where nearly two-thirds of the
nation's population resides. It also links more than 240 short-line
railroads and more than 70 ocean, river and lake ports with major
population centers and farming towns alike. More information about
CSX Corporation and its subsidiaries is available
at www.csx.com.
About G&W
G&W owns or leases more than 100 freight railroads
throughout North America with
4,000 employees serving 2,000 customers over more than 13,000 track
miles. G&W subsidiaries and joint ventures also provide rail
service at more than 30 major ports, rail-ferry service between the
U.S. Southeast and Mexico,
transload services, and industrial railcar switching and repair.
G&W is owned by Brookfield Infrastructure Partners, L.P. and
GIC.
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SOURCE CPKC