NAFTA CHOO CHOO

Is A Railroad Linking Mexico, Canada And US On The Way? Mexican Regulators Approve $31B Move


By Maggie Valenti
11/29/21 AT 12:15 PM

A railroad that would link Mexico, Canada and the U.S. has been approved by Mexican regulators. The project would operate about 20,000 miles of rail through North America and has the potential for about $8.7 billion in sales, while also helping transition to a greener economy.

The regulators in Mexico approved Canada Pacific’s $31 billion deal to merge with Kansas City Southern, with a plan to link the railroads to Mexico. U.S. regulators have not approved major railroad mergers since the 1990s, the Associated Press noted.

The rail line to Mexico will come from Kansas City Southern, which already has a line from the Pacific port of Lazaro Cardenas to Texas. Canadian Pacific’s network meets with Kansas City Southern’s line in Kansas City. Canadian Pacific Kansas City would be the name of the new rail line.

The two companies are waiting on key shareholders to approve Canadian Pacific’s acquisition of Kansas City Southern, and U.S. and Canadian regulatory approval.

Canadian Pacific shareholders will vote on the acquisition on Dec. 8 while Kansas City Southern’s shareholders will vote on Dec. 10, according to the Kansas City Business Journal. The transaction, if approved by shareholders, will close on Dec. 14.

On Friday, the companies said the review of the deal could continue into the fourth quarter of 2022. It would take a while for the railroad to be built, considering the current timeline.

“This historic combination will add capacity to the U.S. rail network, create new competitive transportation options, support North American economic growth, and deliver important benefits to customers, employees and the environment,” said Keith Creel, CEO of Canadian Pacific.