Notice of Change of KCSR Tariffs and Offer of Settlement Agreement Pertaining to the Shipment of TIH/PIH Commodities

April 17, 2023

Attention:  All Shippers of TIH/PIH Commodities on KCSR Network

We are pleased to inform you that effective April 14, 2023, Canadian Pacific, including its existing operating subsidiaries (together “CP”), has combined with The Kansas City Southern Railway (“KCSR”) to form Canadian Pacific Kansas City (“CPKC”), a single-line rail network connecting Canada, the United States and Mexico, as approved by the U.S. Surface Transportation Board (“STB”) in its decision issued March 15, 2023 in Finance Docket No. 36500 (“STB Decision”).

To ensure that there are clear and consistent ancillary terms and conditions applying to the transportation of Toxic Inhalation Hazard/Poison-Inhalation Hazard (TIH/PIH) across the CPKC network, and to better manage the extraordinary risks associated with the transportation of TIH/PIH, KCSR has revised KCSR Rules Publications 9011-G and 9012 specifically item 475 exhibit B, which revisions will become effective June 1, 2023. For copies of the KCSR Rules Publications 9011-G and 9012 and for more information regarding KCSR’s tariffs generally, please visit our website at https://www.kcsouthern.com/en-us/ship-with-us/rules-publications-pricing/rules-publications, or please do not hesitate to contact the undersigned. Until further notice, all other KCSR tariffs remain in full force and effect.

Pursuant to the STB Decision, we are also notifying you that CPKC is offering to all shippers of TIH/PIH commodities on the KCSR network the terms of a Settlement Agreement entered into between CP and Bayer (the “CP-Bayer Settlement Agreement”), a copy of which can be found in this link. The terms of the CP-Bayer Settlement Agreement are embodied in the proposed settlement agreement between CPKC and you set forth in the form found in this “Proposed Settlement Agreement” link . If CPKC does not receive your acceptance of this Proposed Settlement Agreement by May 30, 2023, the above-mentioned KCSR tariff changes will take effect as to your shipments commencing on June 1, 2023. In the event you accept the Proposed Settlement Agreement by May 30, 2023 and comply with its terms, the effective date of the above-mentioned revised KCSR Tariff will not take effect until June 1, 2026.  

We would be pleased to further discuss this Proposed Settlement Agreement with you should you have any questions or concerns.

We thank you for your continued support, and look forward to working with you to establish a mutually agreeable solution that will enhance the safety of rail transportation of TIH/PIH shipments.