Illinois grain shipper opposes CN request to force CP and KCS to divest

[elleng]

Springfield Line as part of merger.

Divestiture of line linking Springfield, Ill., and Kansas City would end single-line service to Mexico, shipper tells federal regulators.

A major grain shipper opposes Canadian National’s effort to force Canadian Pacific and Kansas City Southern to divest the KCS line linking Springfield, Ill., and Kansas City.

Earlier this year CN asked the Surface Transportation Board to condition approval of the CP-KCS merger on divestiture of KCS’s Springfield Line. CN promises to spend at least $250 million to create the Springfield Speedway, a new single-line route linking Kansas City with Detroit and Eastern Canada via the Illinois capital.

But Bartlett Grain Co., which opened a grain loading facility on KCS in Jacksonville, Ill., in 2013, says a divestiture to CN would end the single-line service it currently enjoys for grain shipments to Mexico. The $25 million Jacksonville facility includes a loop track that can accommodate 100-car unit trains.

“Nearly all of our shipments from Jacksonville go to Mexico,” Bartlett President Bob Knief wrote to regulators this week. “We made that investment to support shuttle service to Mexico that is a direct move from origin to destination on KCS.”'>>>

https://www.trains.com/trn/news-reviews/news-wire/illinois-grain-shipper-opposes-cn-request-to-force-cp-and-kcs-to-divest-springfield-line-as-part-of-merger/?

[VarryOn]

1. As a customer of both...

I much more prefer CN. Being HQ'ed in Montreal (vs Calgary for CP), they're more progressive...well, at least, for a railroad. They just hired the 2nd Class I female CEO, and the folks I've worked with were always quite diverse demographically. My experience has bee CP employees are coat and tie, white males largely. They'll nickel-and-dime the hell out of you versus CN. CN is much more relationshippy; CP more strictly about business.

I wonder what CP has promised this shipper for their support.

[elleng]

2. Thanks for the info!

I worked for the STB/formerly the ICC for 20 years, and this likely would be my case, if I were still there.

[VarryOn]

3. Oh, another thing..CP lobbied for...

this merger to be evaluated under older, less stringent regulations versus new ones created in 2001 that include a "public good" evaluation. Due to CP and KCS's sizes, the STB could apply either regs, but they decided to use the older ones. In their attempt to merge with KCS, CN agreed up front to have the newer regs to apply.

Interesting that you worked for the STB. A very powerful yet quite unknown agency, unless you're in the industry.

[elleng]

4. The ICC was, of course, the FIRST regulatory agency.