The new CPKC will certinly have to upgrade all of the former MILW line from Kansas City to the Twin Cities to handle new merger related traffic. I belive that the track was Class II (25 mph) when it was still the IC&E but was upgraded to Class III (40 mph) when CP took over in 2008. CP has said they will be spending 50 million to upgrade to line to handle merger-related traffic. That seems low to me. However, the line does seem to be qutie underutilized, so this number might just be accurate.
What I find the most interesting is what will be CN's response to this? In the late 90s, CN begain their blitz into the United States. First buying up the Illinois Central gain access to the Gulf of Mexico. Then they purchaced the Wisconsin Central, Great Lakes Transportation, and Elgin, Joliet & Eastern to create an "Iron Lariat" around the Great Lakes. Turning what was a string of secondary lines into a major freight corridor that made the other railroads jelous. CP's response was underwhelming. Buying the DM&E-IC&E system for far more than it was worth. The tower of cards had to collapse enventually. It finally did when Fred Green was booted out of the door, and Hunter Harrison came in and worked his magic. Hunter tried to buy NS which didn't work. Then he went to CSX, leaving Creel in charge.
Creel then told the marketing department "Give me 500 million in new carload traffic." That 500 million that Creel thought was possible turned into 2 billion in new revenue for the company. CP now had money to throw around on acquisition that could "close the gap" with CN. First, the Central Maine & Qubec was purchaced, giving CP acess to the Maratimes that they surrendered to CN 30 years ago. Second, the Detroit River Tunnel. (Sidenote: I belive this acquisition to be a precustor to some kind of joint venture closing the Chicago-Detroit gap.) Now, Kansas City Southern, which gives CP what CN has had for 20 years and more. This doesn't even mention rumors about CP buying lines in the Pacific Northwest. (
https://www.railwayage.com/freight-fore ... annel=home)
If CN was the winner of the 2000s, then CP is the winner of the 2010s, and possibly the 2020s as well. CN, the old winner, will have to respond somehow. What that response is? I don't know. Merger with another Class I? Buying trucking companies in the US? Something else entirely?
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