Canadian Pacific-KC Southern deal likely adds market share, not more crude by rail

摘要

1. Merger would offer most crude-by-rail paths to USGC, 2. Combined network would compete directly with Canadian National, 3. Crude-by-rail economics to remain weak for some time. Houston-The $25 billion combination of Canadian Pacific Railway with Kansas City Southern creates the first single-path crude-byrail gateway from Alberta to the Houston-area refining and export network, but it does not mean overall Canadian crude volumes to the US Gulf Coast are going to surge.