Letter to Martin J. Oberman, Chairman of the Surface Transportation Board - ND Delegation Statement on Merger Agreement Between Canadian Pacific, Kansas city Southern Railways

Letter

Dear Chairman Oberman:
We write to express our support for the proposed merger agreement between Kansas City
Southern (KCS) and Canadian Pacific Railway (CP). We believe such an arrangement would
serve the public interest by opening new markets for commodities produced in States served by
CP, including North Dakota. Thank you for your attention to this important matter.
Canadian Pacific Railway is one of two Class I freight rail providers in North Dakota, both of
which provide integral market access for much of North Dakota's commodity driven economy.
As a state rich with natural resources, including agricultural products, crude oil, and others,
producers in our state rely on freight transportation to move their products to market. Currently,
shippers in North Dakota have direct access to ports in the Pacific Northwest, and thus much of
Asia, through rail transportation provided by both Canadian Pacific and Burlington Northern
Santa Fe (BNSF). A KCS/CP merger would create the first Class I railroad with track in
Canada, Mexico, and the United States, opening access to new markets for our State's producers
in Mexico, while also providing a more direct route to markets in the Southern United States.
This in turn would increase competition and help our agricultural producers continue to provide
the highest quality, lowest cost food supply in the world, while also contributing to our nation's
energy independence.
Further, a KCS/CP merger would preserve the competitiveness of the rail industry among the
limited number of Class I carriers operating in the U.S. In fact, the proposed merger would
remain the smallest of the Class I railroads, promoting competition among railways in the region
and ensure railways provide efficient service and competitive rates.
Again, thank you for your attention to this important matter. Please do not hesitate to contact our
offices should you require more information or wish to discuss this matter further.