Transportation Changes to Bring Better Delivery Results

Transportation changes including a rail merger between Canadian Pacific’s (NYSE: CP) and Kansas City Southern (NYSE: KSU) could result in easier, faster and more secure transportation of industrial manufactured goods in North America. The merger would connect customers with six of the seven largest metropolitan regions in North America, potentially reduce transit times and provide new product offerings, such as a possible new intermodal service between Dallas and Chicago, executives with both companies said. The merger would also allow for north-south customers to avoid congestion-prone Chicago via CP’s network in Iowa.

“This is going to create a new option for single line rail service for markets that don’t exist today,” CP President and CEO Keith Creel said.

“To be sure, there is clearly significant synergies potential, with both companies currently interchanging traffic at a shared facility in Kansas City; a more seamless interchange and better breadth of single-line service would lower cost, but more importantly, improve service and transit times which would help draw more volumes to the network,” said Deutsche Bank analyst Amit Mehrotra.

With warehouses in the Northeast, Southwest, Southeast and Central parts of the U.S., Con-Tech can store any product at any given location depending on our customer’s needs. To improve delivery times and reduce freight costs, products are stocked in various warehouses depending upon customer requirements. We encourage our customers to pick up products on backhauls after making their own deliveries from out centrally located stocking points in New Orleans, Chicago, Houston, and Savannah.

Con-Tech will be following these updates carefully. Check our website and blog for more updates on other transporatation news.