North America - Just when we thought Railway Age would get a brief break from publishing letters about mergers, here's another one, from the North Dakota Grain Dealers Association (NDGDA) to the Surface Transportation Board re-iterating its support of the Canadian Pacific-Kansas City Southern combination. In the letter, the NDGDA also expressed its opposition to CN's rival bid. The full text:
 
The North Dakota Grain Dealers Association (NDGDA) hereby files this letter to express its opposition to the bid by CN to acquire KCS and re-iterate its support for the CP/KCS combination.
 
As expressed in our initial letter to the Board dated 30 Mar 2021, NDGDA supports swift approval of the CP/KCS combination because of the significant benefits the combination should bring, including expanded markets to the North Dakota grain shippers serviced by CP and strengthened competition against the other, larger rail carriers and trucks that serve our members' markets.
 
The backbone of North Dakota's economy is agriculture, and over 80 percent of North Dakota's grain production moves to market by rail.
 
North Dakota's grain shippers are in a captive rail market which limits competition and our options for market destinations.
 
A CP/KCS combination should provide CP grain shippers expanded access to markets across the United States, Mexico, Canada, and even internationally.
 
The bid by CN would effectively end any opportunity for market expansion for North Dakota CP grain shippers.
 
In addition, a CP/KCS network should increase competition between North Dakota's rail carriers and trucks that serve our members' markets.
 
We expect a combined CP/KCS network to offer seamless, single-line, service that will improve our transportation options and provide a better alternative to the options that already exist.
 
As mentioned, North Dakota is a captive rail market, but a CP/KCS network should provide alternatives that would increase competition between North Dakota's Class I carriers.
 
A CN/KCS combination would do nothing to benefit North Dakota shippers but would instead decrease competition overall.
 
Respectfully submitted,
 
Stu Letcher - Executive Vice President North Dakota Grain Dealers Association.