Regina Saskatchewan - Saskatchewan's minister of agriculture is seeing opportunity in the recent
approval of a move by Canadian Pacific Railway (CP).
The company's takeover of Kansas City Southern (KCS) has now been approved by the Surface Transportation Board in the
U.S., meaning the two will merge and become known as Canadian Pacific Kansas City (CPKC).
It would create the only single-line rail network linking Canada, the U.S., and Mexico.
"We see some great opportunity, especially with companies trading into Mexico," Agriculture Minister David
Marit said.
"It just gives another opportunity for us to move our product out of this province without having to go east or
west."
Marit said Mexico is Saskatchewan's fifth-largest trading partner and those numbers have been rising over the last few
years, hitting $1 billion last year.
He said this is an opportunity for companies in Saskatchewan and Mexico to expand even further now that there could be
a direct link.
"Those companies are doing business in all of Latin America, so now we have access to, I would say, probably in
the neighbourhood of excess of 300 million people," said Marit.
Marit didn't have any concerns about the move distracting CP from moving grain and agriculture commodities in
Saskatchewan, saying it could mean the exact opposite.
And while CN and the U.S. government had voiced some concerns about the acquisition reducing competition in the
industry, Marit doesn't share those concerns.
The deal is worth about US$31 billion and the new merged rail line will operate 33,000 kilometres of rail and employ
nearly 22,000 people.
Lisa Schick.
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