What I am at a loss to understand is that if "Jager" knew this merger proposal would be dead on arrival, why did he ever propose it?
The "one day pop" went to the other guys; not to his corporate raider consort.
I can see how he made the comment that a CP+KCS combination would be "very expensive". As I previously noted earlier in the topic, I would think that Surfboard would be compelled to go along as they permitted CN to form a "T-Bone" system that, on paper, CP+KCS would emulate. However, KCS does not enjoy a "from the Mississippi Delta rolling on down to the sea" route of the IC, but rather an "over hill over dale" through the Ozarks. Further, much work would be needed to the MILW Chi-KC (CP has some kind of trackage over such) in order for it to become a contemporary road. While both roads serve New Orleans, I would guess more ocean traffic is available through Mobile (IC) than Port Arthur (KCS).
Who knows what effect a merger would have on KCS-M (NdeM); would a merged KCS retain the franchise to be the operator of such? Even in a post-PANAMAX environment, the port of Lazaro Cardenas, Mich
, which KCS-M has sole access to, could provide lower costs (Does Estibador Jose make the same pesos as does Longshoreman Joe bucks?) and maybe even competitive with Trans Canal (those tolls ain't gonna be cheap; better have your EZ Pass filled up
). But in order for Lazaro Cardenas to have any potential the Federales and the Bad Guys will have to limit their shootouts to episodes of "The Bridge".
So as Mr. Barlow also notes, CP+KCS could be expensive.
disclaimer: author holds long position KSU (has done very well)