We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • CSCMP EDGE 2023
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • CSCMP EDGE 2023
    • Upload Your Video
Home » Two House lawmakers urge STB to reject CP's proposed buyout of NS
newsworthy

Two House lawmakers urge STB to reject CP's proposed buyout of NS

January 8, 2016
DC Velocity Staff
No Comments

Two Democratic leaders of the House Transportation and Infrastructure Committee have urged the Surface Transportation Board (STB), the federal agency that rules on rail mergers, to reject Canadian Pacific Railway's (CP) proposed $27 billion acquisition of U.S. railroad Norfolk Southern Corp., saying the deal would solely benefit CP, its shareholders, and other investors at the expense of shippers and workers.

Reps. Peter DeFazio (D-Ore.), the committee's ranking member, and Mike Capuano (D-Mass.), ranking member of the Railroads, Pipelines, and Hazardous Materials Subcommittee, told the STB in a letter late yesterday that the proposed deal does not meet the criteria for public interest benefits set forth in the STB's 2001 rules, which raised the bar for merger approval. The lawmakers added that they "have significant concerns with CP's proven track record of boosting profits at the expense of its workforce" and that "further consolidation of an already healthy industry is unwarranted."

Calgary-based CP has made three buyout proposals to the Norfolk, Va.-based railroad. NS' board has rejected each proposal, the last time being two days before Christmas. A CP-NS combination would be the first transcontinental rail merger in North American history.

CP said it would place itself in a voting trust and have its current CEO, E. Hunter Harrison, run NS while the STB evaluates the combination, a process that could take up to 22 months. The trust would be overseen by a trustee, who would insulate CP from taking unlawful control of NS during the STB's evaluation period.

In an effort to allay concerns that the combination would reduce shippers' options, CP has proposed that if the combined company failed to provide adequate service or competitive rates, it would allow another carrier to operate from a connecting point on the combined company's tracks and into its terminals. CP also said it would end a practice in the U.S. under which an origin railroad dictates where it interchanges a customer's freight with another carrier, even if other interchange points are more advantageous to the shipper.

In an e-mailed statement, CP spokesman Martin Cej said CP has "proposed a combination that creates a true coast-to-coast railway, enhances competition, improves customer service, and better supports the North American economy. We look forward to discussing our ideas in detail with all key stakeholders in the coming weeks." CP has not publicly responded to NS' board's rejection of its third proposal.

Transportation Rail Regulation/Government
KEYWORDS Canadian Pacific Railway Norfolk Southern
    • Related Articles

      CP asks U.S. regulators to probe efforts by U.S. rail CEOs to block proposed NS buyout

      Harrison says CP to abandon buy-out bid for NS if shareholders reject proposal to hold talks

      CP to stay "committed" to buyout of Norfolk Southern even as US rail rejects offer

    Recent Articles by DC Velocity Staff

    Logistics Plus arranges gas pipe delivery to war-torn Ukraine

    Raising temperatures of cold storage warehouses would cut emissions, Lineage says

    Schneider Electric aims to decarbonize the semiconductor supply chain

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Intermodal groups applaud White House pick for new Multimodal Freight Office

    • MercuryGate acquires cross-border customs clearance specialist ITS

    • A new outlook that’s a lot like the old outlook

    • Rising tech firms target logistics challenges

    • Verizon: Employers struggle to balance cybersecurity with business imperatives

    Now Playing on DCV-TV

    1939a893 c406 4468 af9b 5bbb78acd8c1

    How Will Rate Increases from UPS and LTL Carriers Affect Your Freight Budget in 2024?

    DCV-TV 4: Viewer Contributed
    In the logistics industry, the task of quantifying cost increases from parcel and LTL carriers is becoming more complicated. We don’t expect this trend to end anytime soon, as these companies look for ways to use greater precision in their pricing by drawing on the greater amount of data available.

    FEATURED WHITE PAPERS

    • Exploring Forklift Energy Solutions for Maximum ROI

    • Identifying How Sortation Automation Can Address Challenges for Parcel Processors

    • Unlocking efficiency and growth

    • Quarterly Freight Data Report: Q3 2023

    View More

    Subscribe to DC Velocity Magazine

    GET YOUR FREE SUBSCRIPTION
    • SUBSCRIBE
    • NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing