Statement by Commissioner Bentzel On Surface Transportation Board Testimony On Kansas City Southern and Canadian Pacific Merger

Commissioner Carl W. Bentzel testified before the Surface Transportation Board (STB) Tuesday on possible supply chain impacts of the proposed Kansas City Southern (KCS) and Canadian Pacific (CP) merger.

“I respectfully urge the Surface Transportation Board to disapprove the consolidation of the railroad systems of the CP and the KCS under the provisions of 49 U.S.C. § 11324 (d)(2).  In my view, the proposed consolidation does not ensure that, ‘the anticompetitive effects of the transaction outweigh the public interest in meeting significant needs.’”

Commissioner Bentzel noted he is especially concerned about potential adverse impacts to U.S. seaports and U.S.-based intermodal railway system that serves those gateways.

“I contend that while there might be economic benefits to certain shipper organizations and locations in the United States, that overall, there will be greater negative impacts relating to employment and long-term investment affecting intermodal shipments through U.S. ports, and other business entities providing warehousing and distribution centers servicing U.S. ports, and other entities that handle cargo bound through U.S. ports.  Such economic losses will be far greater than any economic value that might ensue because of a consolidation of the railroad systems of CP and KCS,” testified Commissioner Bentzel.

Earlier this year, Commissioner Bentzel submitted similar comments to the STB on his strong concern to the Kansas City Southern and Canadian Pacific merger.

Carl W. Bentzel is a Commissioner with the U.S. Federal Maritime Commission. The thoughts and comments expressed here are his own and do not necessarily represent the position of the Commission.