Laredo Texas USA - A major railroad merger last week saw Canadian Pacific acquire Kansas City Southern for US$31 billion.
 
Both companies involved, and local leaders, have stated that the merger is a good thing for the area that will only bolster Laredo as the country's No. 1 inland port, create more jobs for the community, and benefit the overall economy.
 
The effects of the merger are expected to be seen soon in the routes along the corridor in which the merger will take effect.
 
"As the largest inland port in the U.S., Laredo has been and will remain a key and vital inland port for the lifeline of trade between Canada, the U.S., and Mexico," said Andy Cummings, a spokesperson for Canadian Pacific Railway.
 
"The CPKC combination will create the first and only single-line railroad in North America offering one-of-a-kind, single-line service to Canadian, U.S., and Mexican shippers. It is a once-in-a-lifetime opportunity to inject new rail competition into important north-south trade flows, making Laredo an even more important and more competitive port for the future."
 
Cummings said the combination will enable rail transportation services that better meet the needs of both companies' customers.
 
It should also expand their markets and facilitate economic growth in Laredo and across the entire rail network.
 
Gene Lindgren, the president and CEO of the Laredo Economic Development Corporation, commended the railroad merger and said it will bring great benefits to the area.
 
"The LEDC applauds the decision by the U.S. government to approve the merger between Kansas City Southern and Canadian Pacific Railway," Lindgren said.
 
"The merger is creating a larger and more efficient railroad that will make the entire North American region more competitive, and that by itself will have long-lasting positive impacts into reshoring and near-shoring investments in the U.S. and Mexico where Laredo will be the beneficiary due to our leadership in the supply chain."
 
Lindgren also said the merger will help make a big local impact economically, as he states that Kansas City Southern has been deeply involved in the community working with the public and private sectors to make infrastructure and process improvements to reduce traffic and noise in the area.
 
Another reason why the merger is being celebrated locally is that it will potentially bring new jobs to the area.
 
Cummings confirmed that this is a new reality coming soon to the corridor in which Laredo is located.
 
"You'll note 85 new positions resulting from the merger on the corridor between Beaumont and Laredo," the spokesperson said.
 
"We forecast eight additional trains per day on the Laredo-Robstown route."
 
To help provide more capacity to handle this anticipated growth, last year KCS began construction on a second rail bridge between Laredo and Nuevo Laredo to improve the flow of freight across the border and help reduce congestion.
 
"Also last year, KCS partnered with the City of Laredo in submitting an application for a federal CRISI grant where KCS will fund the local match to do planning and engineering for improvements along the KCS line through downtown Laredo, including grade separating in the future some crossings and other improvements, creating a secure rail corridor through Laredo," Cummings said.
 
Lindgren further states that infrastructure projects can be expected to continue now that the merger is approved.
 
Reports suggest that more traffic and congestion may be caused because of the merger, but he does not believe that this will be a long issue to deal with.
 
According to Cummings in a report done by the STB's Office of Environmental Analysis, it was concluded that apart from train noise, which could result in adverse impacts at some locations, the potential adverse impacts of the Proposed Acquisition would be negligible, minor, and/or temporary.
 
"CPKC will bring a new standard of safety to the routes it operates," Cummings said.
 
"CP has been the safest railroad in North America for 17 straight years, as measured by the Federal Railroad Administration train accident frequency ratio. In 2022, CP had an all-time best frequency of 0.93, a rate nearly half what the company produced a decade ago and 69 percent lower than the Class 1 average."
 
Lindgren said that evidence of this can already be seen as Kansas City Southern is constructing a new rail bridge that will cost them about US$100,000 to be able to have dedicated northbound and southbound bridges.
 
"We are also aware of proposals to elevate the downtown tracks which would completely remove commuter issues, and we will work with the management team for the new railroad Canadian Pacific Kansas City to support these initiatives," Lindgren said.
 
Overall, the people at CP believed that this will all help Laredo grow further as an inland port and its place on the commercial trade map.
 
"These actions combined will help Laredo remain and grow as an important inland port, bring new opportunity and jobs, and secure Laredo's role in the border economy, all while making investments in new capacity and corridor improvements along the route to benefit the community," Cummings said.
 
Jorge A. Vela.