Three commissioners from the US maritime agency, Federal Maritime Commission (FMC), Carl W. Bentzel, Louis E. Sola and Max M. Vekich, have submitted comments to the Surface Transportation Board (STB) that oppose/object to the proposed unification of the Canadian Pacific Railway (CP) and the Kansas City Southern Railway (KCS).
More specifically, the three commissioners urged the STB to reject the consolidation of CP and KCS in accordance with provisions of Title 49 of the United States Code, which refers to transport.
“The proposed consolidation does not ensure that the anticompetitive effects of the transaction outweigh the public interest in meeting significant needs,” the commissioners said in a statement to the STB.
“It is important that the US maintains our infrastructure as well as our operational capabilities. The pandemic reinforced how important these resources are within the global supply chain as well as the impact that they have on local communities, businesses, and jobs,” said Commissioner Bentzel.
Commissioner Sola noted that “the consolidation of any limited asset integral to the supply chain merits close examination and the acquisition of such an asset by an enterprise supported, subsidized, or controlled by a foreign power deserves scrutiny.”
Moreover, Commissioner Vekich stated that “it is imperative that we maximise cargo flow through US ports for the benefit of our stakeholders – especially our ports, waterfront employers, labor, and the related intermodal industries that flourish with the increased cargo volume on American soil. We must also work to promote competitive and efficient supply chain solutions.”
It is important to note that the thoughts and comments expressed are of the three commissioners and do not necessarily represent the FMC position.
