Late last month, Canadian Pacific confirmed that conversations about a proposed combination with CSX Corp. had ended. On Oct. 21, CP Chief Executive Officer E. Hunter Harrison hosted a teleconference in an attempt to clarify CP's intent RE: CSX, as well as CP's position on mergers. During the call, he said he doesn't believe it's a given that the Surface Transportation Board would've rejected CP-CSX. If CP were willing to "grant access, improve service, change conventional wisdom about 'bottlenecks' and look at the law as written," Harrison said he believes he could have made "a rational case" for the proposed transaction. Whatever the political weather. Harrison also said he wasn't/isn't pushing mergers as the way to ease to rail network congestion/boost capacity. But he added that he hadn't seen a plethora of solutions out there, either."We are quickly approaching a time where none of this works," he told teleconference attendees. "We can't continue to go down the road we're going down and be successful, and not have gridlock beyond anything we've seen." For more of what Harrison told them, check out my November issue column.
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