After back-to-back train disasters, regulators approve the largest rail merger in decades creating a
line that would stretch from Canada to Mexico
Rail consolidation has a terrible track record, but regulators think this time it will be different.
Canadian Pacific and Kansas City Southern, the nation's sixth and seventh largest railroads, have been waiting two years to combine their rail networks into the first single-line railroad connecting Canada, the United States, and Mexico. On Wednesday, the Surface Transportation Board (STB), which has sole authority over rail mergers, approved the $31 billion transaction. The board argued the merger was best for the country even though the highly-consolidated rail industry has exhibited major accidents, a grueling fight between railroads and unions, and service meltdowns in recent memory.
In February, a 50-car Norfolk Southern train derailed in East Palestine, Ohio, spilling highly flammable hazardous materials, forcing residents to evacuate, and killing thousands of aquatic animals. To close out the month, another Norfolk Southern train crash caused more than 1,500 Ohio residents to lose power.
Just a few months earlier, the Biden administration imposed a labor agreement to avert a rail strike that could have cost the economy $2 trillion dollars a day. Congress refused workers the sick leave they say would prevent future train disasters like the one in East Palestine.
https://www.msn.com/en-us/money/companies/after-back-to-back-train-disasters-regulators-approve-the-largest-rail-merger-in-decades-creating-a-line-that-would-stretch-from-canada-to-mexico/ar-AA18IjA3