Muscatine Iowa USA - After learning that Davenport could receive as much as US$10 million from Canadian Pacific Railway (CP), the Muscatine City Council is expected to vote on a resolution supporting a US$3 million settlement Thursday evening.
 
In the fall of 2021, CP and Kansas City Southern Railway Company (KCS) filed an application for merger with the Surface Transportation Board (STB).
 
If approved, the merger will take place late this year.
 
The merger would create the first single-company rail line connecting the U.S., Mexico, and Canada, valued at roughly US$31 billion.
 
Trains travelling intercontinentally would pass through Iowa along the Mississippi.
 
If approved the merger would have a significant impact on Muscatine, with a possible three-fold increase to rail use.
 
Due to this, the city staff hopes to enter a Community Investment and Settlement Agreement with the rail line.
 
The City of Bettendorf is receiving a US$3 million settlement.
 
Reports have said the area will experience a 225 percent increase in trains and a 100 percent increase in annual gross ton miles.
 
Mayor Brad Bark declined comment on the resolution, saying it is up to the city council to discuss.
 
A discussion is on the agenda for Thursday's meeting which will be held at 19:00 in the council chambers at Muscatine City Hall.
 
Previously council member Jeff Osborne expressed concerns about the merger and asked members of the public to comment online.
 
The City also sent an email with 13 areas of concern to CP.
 
According to the merger's website, Muscatine's current rail travel is an average of 4.8 trains per day.
 
With the merger, the number would jump to 14.4 trains per day by 2027.
 
The main railway through Muscatine includes 15 crossings, ranging from one to four tracks, and experiences a crossing traffic count of over 14,500 cars per day.
 
There are also five rail spurs in Muscatine that experience a significant amount of traffic.
 
If the resolution is approved, documents say US$1.6 million of the money will be used as a 20 percent match for a grant application to construct grade separated crossing at Dick Drake Way.
 
CP has also agreed to provide a grant writer to assist with the application.
 
The City will also add a pedestrian/bike crossing at Oregon Street and close the Day Street crossing.
 
Remaining funds will be used as the city deems appropriate to mitigate the impact of increased train traffic in the city.
 
Riverfront cities and CP have been in negotiations for months.
 
In a statement from CP the merger was referred to as an "economic growth story" and promised the merger would provide expanded economic opportunities to area communities and businesses.
 
The rail line expects the creation of about 1,000 direct rail jobs throughout the system, including positions based in southeastern Iowa.
 
The website also says that the merger will result in the reduction of 1.5 million tons of greenhouse gas emissions yearly.
 
"While the overall impact of the CPKC transaction is unambiguously pro-environment and pro-economic growth, we recognize that we will be increasing the number of trains that operate through some communities," the emailed statement from CP said.
 
"We will work hard to be a good neighbor and mitigate potential adverse community impacts, and have already met with the city leaders in Muscatine and other southeastern Iowa communities, and continue to communicate with them. The merger will be subject to an environmental impact process. CP will work closely with the STB's Office of Environmental Assessment so that these issues are carefully and appropriately analyzed."
 
The statement also said that the merger is based on creating commercial opportunities and growth for the railway and shippers in local communities.
 
David Hotle.