The Canadian Pacific Railway and the Kansas City Southern have come together in a merger agreement worth approximately $29 billion. The boards of directors of both railways have unanimously approved the merger and are awaiting the final go ahead from the U.S. Surface Transportation Board. South Dakota Corn Grower’s Association President Scott Stahl sees several benefits for producers from the merger that would create the first rail network connecting the U.S., Mexico and Canada.
He says any merger involving large businesses deserves monitoring to make sure the farmer isn’t saddled with any increased costs from it.
Stahl says rail transportation is critical for South Dakota’s farmers and ranchers in getting their commodities to export markets.
Officials with both the Canadian Pacific and Kansas City Southern Railroads say their combined network’s single line offerings will deliver dramatically wider market reach for their customers.
