The chairman of the U.S. House Transportation and Infrastructure Committee announced his opposition to Canadian Pacific’s proposed rail merger with Norfolk Southern Corp.
“I do not believe it is in the best interests of the U.S. freight transportation system, railroad employees, rail shippers and the short line railroads. … I believe it is time for all parties to move on from hypothetical merger proposals,” Representative Bill Shuster said.
“A strong, healthy and well-functioning freight rail system is critical to the movement of goods in this country. … However, CP’s pursuit of a merger over the last two years has done nothing but create uncertainty in the rail industry, and there continues to be no clear path forward for such an arrangement,” he added.
CP announced in November last year a US$28 billion offer for Norfolk Southern. Norfolk Southern has refused the offer.
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