March 21, 2021
Dear Valued Customer,
I am pleased to share some exciting news about Kansas City Southern. This morning, we announced that Kansas City Southern and Canadian Pacific Railway will combine to create the first rail network connecting the United States, Mexico, and Canada. The press release about this announcement can be found here.
The combination will provide an enhanced competitive alternative to existing rail service providers, and is anticipated to result in substantially reduced transit times for customers of all sizes. In addition, you will benefit from the increased efficiency and simplicity of the combined network, which is expected to support you in growing your rail volumes.
We have long prided ourselves in being the most customer-friendly transportation provider in North America, and we strongly believe that Canadian Pacific Railway’s culture is aligned with ours. This combination will enable us to provide you with the best value for your transportation dollar due to the cost-competitiveness and increased efficiencies that will result from the transaction. It will also create the first United States-Mexico-Canada railroad, bringing together two railroads that have been keenly focused on providing quality service to their customers to unlock the full potential of their networks. It is important to emphasize that no customer will see a reduction in their rail alternatives. There are no 3-to-2 or 2-to-1 locations that will see a reduction in rail service.
We recognize the important role rail plays in lowering emissions, and by combining with Canadian Pacific Railway we will advance both our shared science-based pledges to improve fuel efficiency and lower emissions in support of a more sustainable North American supply chain. We strongly believe that you will benefit from the inherent strengths of this combination.
While we are excited about this transaction, our announcement is just the first step toward bringing our companies together. As we move through the process of completing this transaction, we remain as focused as ever on maintaining our strong relationship with you and will continue to work with you as we always have. Upon closing, we anticipate a seamless transition for you. For now, it is business as usual, and your day-to-day business contacts should remain the same for the foreseeable future.
On behalf of the entire Kansas City Southern team, I want to thank you for your continued partnership and support. We look forward to continuing to provide you the efficient and secure transportation you have come to expect from us. As always, if you have any questions, please contact your current representative.
Patrick J. Ottensmeyer
Kansas City Southern President and Chief Executive Officer