KC metro gaining as a major distribution hub

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normalthings
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Re: KC metro gaining as a major distribution hub

Post by normalthings »

This CP HQ move might be starting to fill in gaps between rumors that I have been hearing very recently. Potentially big news coming

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Re: KC metro gaining as a major distribution hub

Post by earthling »

KC has been on the losing side of too many M&As and given global HQ still in Canada it's a loss for KC in that sense but in terms of US HQ is good news however operational jobs still in MSP so may not mean larger presence here. And it probably won't show up as Fortune 500 based in KC with Canadian HQ as parent. KCS was Fortune 800 something but pretty sure it will no longer be listed even if it were a separate US company with a Canadian parent (like Sprint wasn't listed given Softbank parent in Japan).
Calgary will be the global headquarters of CPKC, and Kansas City, Mo. will be designated as the U.S. headquarters. The Mexico headquarters will remain in Mexico City and Monterrey. CP’s current U.S. headquarters in Minneapolis-St. Paul will remain an important base of operations.
https://www.businesswire.com/news/home/ ... il-Network

This is what the combined rail network will look like...
Image

moderne
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Re: KC metro gaining as a major distribution hub

Post by moderne »

How much of that building do they occupy?

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normalthings
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Re: KC metro gaining as a major distribution hub

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“ Long term this merger has excellent potential. #KC at very center of the CPKC operational map. As USMCA commitments expand, prospects for North American supply chains only strengthen as some mfgrs. in Asia will reshore to reduce vulnerabilities experiencing now.”

- Tim Cowden

earthling
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Re: KC metro gaining as a major distribution hub

Post by earthling »

It might encourage more logistics jobs and rail-yard jobs in KC beyond CPKC as well. But I wonder if they'll move many office operational from MSP to KC given MSP has far more flight destinations, especially to all Canadian cities and more Mexican destinations than KCI. The other quote above says they'll still keep operations presence (I assume office more than field) in MSP.

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normalthings
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Re: KC metro gaining as a major distribution hub

Post by normalthings »

earthling wrote:
Sun Mar 21, 2021 3:15 pm
It might encourage more logistics jobs and rail-yard jobs in KC beyond CPKC as well. But I wonder if they'll move many office operational from MSP to KC given MSP has far more flight destinations, especially to all Canadian cities and more Mexican destinations than KCI. The other quote above says they'll still keep operations presence (I assume office more than field) in MSP.
Minnesota has a lot of yard and road jobs. Will need to keep some sort of operational office for those alone.

I continue to think that UP is on the path to leaving Omaha and would love to see us at least try to compete with Texas.

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Re: KC metro gaining as a major distribution hub

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More from Biz Journal...
The company now has about 200 employees working in downtown Minneapolis, with an additional 500 in a rail yard in St. Paul, CEO Keith Creel told The Minneapolis Star Tribune. He said some employees would move from the company’s offices in Minneapolis to Kansas City but did not give any specifics.
The article is not positive about the deal given that any merger tends to mean job losses even when you have secondary HQs. There will be a lot of overlapping office jobs that will likely be reduced within a few years. And MSP office operations are staying so who knows how that will play out over time given MSP has far better air travel to Canada/Mexico and already has knowledge base of CP practices. KC also loses another Fortune 1000 company as KCS listing goes away.

But pretty good chance it boosts other elements of KC's distro industry outside of the combined company. And maybe over time as policies change for both countries the board might find more benefit to base the global HQ of new combined company in US rather than Canada.

https://www.bizjournals.com/kansascity/ ... -hard.html

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Re: KC metro gaining as a major distribution hub

Post by flyingember »

So one thing that was blocking commuter rail from the south was the rail yard access.

This could provide opportunity around long distance commuter transit if it's closed. Maybe one of the parallel tracks could be bought by the city/county. Owning track from 435 to the riverfront development would be a big deal

Thinking the other direction, being standard gauge it could provide streetcar expansion into the east bottoms via electrification alone. Troost or Prospect Max one stop tranfer to streetcar to the east bottoms would be a big deal for jobs access.

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Re: KC metro gaining as a major distribution hub

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I believe KCS was discussing adding additional office building on the 1210 Broadway surface parking lot at some time. Not sure if this takes that off the table or would be anticipation of additional relocated employees.

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Re: KC metro gaining as a major distribution hub

Post by KCPowercat »

Yeah that building potential was my first thought and how it probably wouldn't happen now.

If they do move MPLS people here though maybe not.

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Re: KC metro gaining as a major distribution hub

Post by normalthings »

flyingember wrote:
Mon Mar 22, 2021 11:28 am
So one thing that was blocking commuter rail from the south was the rail yard access.

This could provide opportunity around long distance commuter transit if it's closed. Maybe one of the parallel tracks could be bought by the city/county. Owning track from 435 to the riverfront development would be a big deal

Thinking the other direction, being standard gauge it could provide streetcar expansion into the east bottoms via electrification alone. Troost or Prospect Max one stop tranfer to streetcar to the east bottoms would be a big deal for jobs access.
Buying an existing track isnt going to do much good for commuter rail. The junction backs up and that can only be avoided with bridges and dedicated tracks as previously proposed. The eastern track you mention for the streetcar will play an important role as a western gateway to the new Canadian Pacific System.

The bigger issue was that KCS wouldn't back any plan that didn't serve Union Station because of their involvement with its renovation. Canadian Pacific may be more sympathetic to our commuter rail plans.
Last edited by normalthings on Mon Mar 22, 2021 12:59 pm, edited 1 time in total.

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Re: KC metro gaining as a major distribution hub

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Sounds like HQ employees will be sent to KC and Ops center as well if the union agrees.







“Some downtown employees will transition to Kansas City, he said, but not until the deal is approved by the federal Surface Transportation Board sometime in 2022. He said employees running the dispatch operation center downtown are unionized so there will be negotiations before implementing any changes.

"There's going to be an opportunity for them to be employed in and work in Minnesota," he said, adding that might mean changing job assignments.”
https://www.startribune.com/minneapolis ... 600036971/

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Re: KC metro gaining as a major distribution hub

Post by flyingember »

normalthings wrote:
Mon Mar 22, 2021 12:03 pm
Canadian Pacific may be more sympathetic to our commuter rail plans.
Canadian Pacific is #1 on on time performance for Amtrak, so that's good for sure.

https://media.amtrak.com/wp-content/upl ... h-FAQs.pdf

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Re: KC metro gaining as a major distribution hub

Post by normalthings »

flyingember wrote:
Mon Mar 22, 2021 3:44 pm
normalthings wrote:
Mon Mar 22, 2021 12:03 pm
Canadian Pacific may be more sympathetic to our commuter rail plans.
Canadian Pacific is #1 on on time performance for Amtrak, so that's good for sure.

https://media.amtrak.com/wp-content/upl ... h-FAQs.pdf
Canadian Pacific worked with Calgary back in the late 90's to test commuter rail service on their freight lines. Test went well and the city built a southern extension of the red light light rail along/near it.

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Re: KC metro gaining as a major distribution hub

Post by earthling »

If I recall from many years ago, another challenge with commuter rail on freight lines is that the rail crossings have to be upgraded to passenger grade, a higher grade than required for freight. Something along those lines. Dave may know details.

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Re: KC metro gaining as a major distribution hub

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Rumor: Accelerate 360 to build a 600,000sqft operations center in Olathe.
https://accelerate360.com/leadership/

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Re: KC metro gaining as a major distribution hub

Post by dukuboy1 »

normalthings wrote:
Sun Mar 21, 2021 12:39 pm
This CP HQ move might be starting to fill in gaps between rumors that I have been hearing very recently. Potentially big news coming
Just curious, what do these rumors involve? Are they related to other railroad companies or something else. Was not sure, as I've seen some thoughts/ideas about Union Pacific on this board as well. Was not sure if that was what you were talking about. Also respect & understand if you cannot go to far into detail as you may be close to the source and or don't want to get down too deep into the weeds on rumors. Just curious :)

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Re: KC metro gaining as a major distribution hub

Post by langosta »

Wonder if we will fall behind without a big push on the air logistics side. Used to be a line that ran KC-Platte City-Chicago. Would have been great to connect that with an air logistics center at KCI.

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Re: KC metro gaining as a major distribution hub

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https://www.bizjournals.com/kansascity/ ... erger.html

Rival bid for kcs with Kansas City becoming the combined us hq.

earthling
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Re: KC metro gaining as a major distribution hub

Post by earthling »

Interesting...
Canadian National said it will close the deal without waiting for regulatory approval through a voting trust structure and pay out Kansas City Southern shareholders. If the deal gets rejected by regulators, it will then sell off or publicly list Kansas City Southern.
https://www.cnbc.com/2021/04/20/canadia ... thern.html

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