Advantages of the merger
The settlement permits native rail shippers to develop their export locations, have higher management over freight prices, cut back transport time and develop a broader distribution system.
The mixed firms will enable firms to shippers to ship merchandise from Kenosha County and different elements of the state to the japanese and western areas of america and Canada, in addition to by way of the southern states and Mexico.
Some space shippers could not discover a lot of a distinction. They nonetheless may have the choice of contracting with CP or CN.
Previous to CN’s announcement, Patrick Hicks, plant supervisor of Arden Mills, 6509 77th Ave. in Kenosha, mentioned, “For the Kenosha facility not a lot would change since our wheat origination comes from the higher Midwest, which is usually CP rail service to Kenosha.
“Since KCS has routes to the southern United States and into Mexico, it definitely would profit a few of our southern mills to maneuver wheat from higher Midwest to these areas. The flour milling business is definitely watching with nice curiosity since Kansas has a big winter wheat crop and will have an effect on transportation routes going ahead,” he added.
Nonetheless, the proposed merger permits shippers who wish to export to Mexico or ship merchandise to southern states to ship alongside a single rail line with out having to change rail firms.