The
acquisition, which combines the sixth- and seventh-largest U.S.
railroads by revenue, was agreed in 2021.
The deal has since closed but Kansas City shares were
transferred to a trust and the railroad must operate
independently until the Surface Transportation Board, which
oversees U.S. freight railroads, approves the transaction.
In a letter to the board, Warren said the deal would "reduce
competition in an already highly consolidated market and could
cause increased shipping costs" and "could result in significant
job losses and service disruptions that negatively impact
American supply chains."
The deal would combine the railroads into a single system known
as Canadian Pacific Kansas City that has 20,350 miles of track
extending from Canada to Mexico, including about 8,600 miles in
the United States.
"This merger would give the new company additional leverage over
competitors, and has shippers worried that they’ll be left with
no alternative rail shipping options," Warren wrote in the
letter dated March 2.
The number of big U.S. railroads has already shrunk to just
seven from 33 in 1980, Warren wrote.
The railroads did not immediately comment. The board, which is
expected to make a decision before the end of the month, did not
comment but says it reviews all comments submitted.
Warren also cited the Feb. 3 derailment of a Norfolk
Southern-operated train in East Palestine, Ohio, saying it
raised questions about railroad safety and the impact of
deregulation and cost-cutting in the industry.
Last month, Senators Dick Durbin and Tammy Duckworth asked the
board to defer a decision until it completes a Chicago region
impact assessment.
(Reporting by David Shepardson, editing by Deepa Babington)
[© 2023 Thomson Reuters. All rights
reserved.] Copyright 2022 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
![](column_spacer.png)
|
|