How the first truly continental railroad could change North American trade

Freight trains may soon travel more easily between Canada, the US, and Mexico after Canadian Pacific Railway finalized a deal to buy Kansas City Southern, positioning itself to become the first rail network connecting the three countries.

The agreement, which is valued at $27 billion, comes after a lengthy battle between Canadian Pacific and its rival, Canadian National, which submitted a $30 billion counter-offer to Kansas City Southern in March that was ultimately rejected by a US regulatory panel.

Trade with Mexico and Canada accounted for nearly 900 million tons of US imports and exports in 2019. Nearly $180 billion worth of goods were transported by rail between the three countries in 2018, accounting for nearly 15% of all trans-border freight in North America. But there has never been one railway service connecting the three countries, which can lead to lengthy trips and service disruptions.

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