Oklahoma's Latest Farm
And Ranch News

Your Update from Ron Hays of RON
Monday, May 24, 2021
Former U.S. Sen. Byron Dorgan Says Proposed Rail Merger Will Improve Shipments of Ag Commodities
A proposed merger involving several major U.S. and Canadian rail lines could greatly impact agricultural shipments.

The merger initially involved Kansas City Southern and Canadian Pacific Railway but recently Canadian National Railway entered the mix.

Former U.S. Sen. Byron Dorgan (D-North Dakota), representing Canadian Pacific, talked with me last Wednesday about the merger proposal.

I have long been an opponent of rail mergers, Dorgan said, noting they don’t make a lot of sense.

However, Dorgan granted a rare exception to the proposed merger with Canadian Pacific and Kansas City Southern.

The reason I think it is a rare exception is because it will open new markets, promote more competition and create a single line opportunity to both coasts and down into Texas and Mexico, he said.

The original talks estimated the merger at $25 billion.

Dorgan said he expects the merger to pass the scrutiny of regulators.

I think it is likely to because I think it will provide more competition and opportunities for shippers to serve new markets, Dorgan said.

He argued that is not true for Canadian National which has 300 shipping facilities where they serve along with Kansas City Southern and that would destroy competition.

Editor's Note- News came Friday- after our interview with Senator Dorgan-- Kansas City Southern  has made it official: It’s breaking up with Canadian Pacific and it’s going with the merger offer from CP rival Canadian National. .
The board of directors for Kansas City Southern (KCS) unanimously  that CN’s offer to acquire KCS was “superior.” 
But Friday’s announcement seals the deal. As a result, KCS has terminated its merger agreement with CP and has entered into a merger agreement with CN.

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