NEW YORK – The pending merger of the Canadian Pacific railroad with Kansas City Southern has potential for growth as the first rail network linking the United States, Mexico and Canada, but it’s not without risks, investment analysts say. Although the merger is colossal, other major roads have linkups connecting many of the same markets. The merger can be expected to energize them to be more competitive. The stock of major competitors took a quick hit when the merger was announced but rebounded smartly. Canadian Pacific stock, meanwhile was off 5% over the next five trading days.
Largest railroads
Burlington Northern: 32,500 miles
Union Pacific: 32,200 miles
Canadian National: 20,400 miles
Canadian Pacific: 20,000 miles (including Kansas City Southern)
CSX: 21,000 miles
Norfolk Southern: 19,400 miles