CP, CSX, NS: Today’s full coverage

March 11, 2016

Fossil fuels ‘probably dead,’ says Canadian Pacific Railway CEO Hunter Harrison

By Ross Marowits, The Canadian Press, in News Kamloops

MONTREAL — People need to get their heads around the idea that fossil fuels are “probably dead,” the CEO of Canadian Pacific Railway said Wednesday.Website Insert Choose Only One copy

“I’m not maybe as green as I should be but I happen to think the climate is changing (and) they’re not going to fool me anymore,” Hunter Harrison told a J.P. Morgan transportation conference in New York.

The veteran rail executive said the transition to alternative fuels will be long, but new investments in traditional energy sources will dry up because of environmental hurdles.

The country’s second-largest railway has seen shipments of crude drop due to declining demand brought on by the dramatic fall in oil prices. Thermal coal shipments have also waned.

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CP to NS: “Promptly engage in good faith discussions”

Written by  Carolina Worrell, Managing Editor, Railway Age Magazine

Canadian Pacific on March 9, 2016 filed a preliminary proxy statement with the Securities and Exchange Commission (SEC) that outlines the shareholder resolution to be considered at the upcoming Annual Meeting of Norfolk Southern (NS) shareholders requesting that the NS board of directors “promptly engage in good faith discussions with CP regarding a business combination.”NS_Logo_Tagline

“CP has proposed a merger with NS that would create an integrated transcontinental railroad with the scale and reach to deliver unsurpassed levels of safety and service to the customers and communities of both companies,” the railroad says.

“This is an opportunity for NS shareholders—who have been telling us since the beginning that they are in favor of the proposed business combination—to speak up and be heard by NS’ board of directors,” said CP CEO Hunter Harrison. “We are not asking NS shareholders to vote on the business proposal itself, but to vote in favor of the shareholder resolution calling for NS to engage in good faith discussions with CP regarding a potential combination.”

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Canadian Pacific CEO Says He Faces `Selling Job’ to Woo CSX

by Frederic Tomesco and Erik Schatzker, Bloomberg Business

Canadian Pacific Railway Ltd. Chief Executive Officer Hunter Harrison said he faces an uphill battle to convince CSX Corp. — not just Norfolk Southern Corp. — of the merits of a merger.CSX

“Neither one of them think they fit well with us. So I’ve got a selling job to do if we’re going to make this successful,” Harrison said Thursday in an interview with Bloomberg Television. It was the first time Harrison has said CSX didn’t welcome Canadian Pacific’s overtures. A CSX spokesman declined to comment.

Harrison has been pursuing an acquisition that would create a coast-to-coast railroad, eliminating rail-car exchanges between carriers. He set his sights last year on Norfolk Southern, which lags behind other large carriers in key efficiency measurements. Exploratory talks in 2014 on a possible linkup with CSX failed to gain momentum.

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CP CEO Harrison: Strongly Believe We Could Get Trust Done

Bloomberg Business Video

Hunter Harrison, chief executive officer at Canadian Pacific Railway, talks with Erik Schatzker about his pursuit of a deal with either CSX or Norfolk Southern and the potential for consolidation in the railway industry. He speaks on “Bloomberg Markets.” (Source: Bloomberg)

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CP+NS: STB declaratory order proceedings under way

Written by  William C. Vantuono, Editor-in-Chief, Railway Age Magazine

On March 10, 2016, the Surface Transportation Board issued a decision, Docket No. FD 36004, “Canadian Pacific Railway Limited—Petition for Expedited Declaratory Order,” responding to CP’s March 2 petition, and setting a timeline for replies and CP’s rebuttal. Following is the full text:CPR Logo Smaller

On March 2, 2016, Canadian Pacific Railway Limited (CPRL)[1] filed a petition requesting that the Board issue a declaratory order on two issues pertaining to CPRL’s pursuit of a possible merger with Norfolk Southern Railway Company (NSR) whether: (1) “a structure in which CPRL holds its current rail carrier subsidiaries in an independent, irrevocable voting trust while it acquires control of [NSR] and seeks STB merger authority potentially could be used to avoid the exercise of unlawful premature common control”; and (2) “it would be potentially permissible for the chief executive officer of [CPRC] to terminate his position at [CPRC] entities in trust and then to take the comparable position at [NSR] pending merger approval.” (Pet. 2.) CPRL has requested that the Board issue an expedited declaratory order by May 6, 2016.

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