Birth of the first rail freight network linking Canada, the United States and Mexico
An American Kansas City Southern Railway Compagny freight train in Mexico in 2018 (illustrative image).
REUTERS - Edgard Garrido
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2 min
It's a giant $ 25 billion merger in North American rail transport.
Canadian Pacific Railways and the American KCS, Kansas City Southern will merge their rail operations.
An economic alliance to create the first rail network in Canada, the United States and Mexico.
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It is the first network that will cross the three countries of North America.
The railroads will meet in Kansas City, Missouri, in the heart of the United States.
This will allow thousands of travelers to be transported.
This network will also help develop freight, since it will link the ports of Mexico to the ports of Canada and the northeast of the United States, with the aim of better integrating the continent's supply chains.
It should also reduce heavy truck traffic on US highways.
It is a way of revitalizing the new free trade treaty that binds the three countries and which had been negotiated in pain with the Trump administration.
This new trade agreement, which
entered into force last July, replaces the NAFTA, and organizes a vast zone for the trade of goods, without customs duties.
The new company will represent a turnover of nearly 9 billion dollars.
It will employ 20,000 employees.
The fact remains that this merger has yet to obtain the approval of the American authorities.
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Transport
United States
Canada
Mexico