US rail regulators have approved Canadian Pacific's (CP) $31bn purchase of US carrier Kansas City Southern (KCS), creating a North American carrier with a network stretching from Canada to Mexico.
The Railway Supply Institute (RSI) is urging federal regulators to help avoid a so-called "boxcar cliff," fearing lower compensation rates are contributing to a shortage of boxcars in the US.
Negotiations to amend US rail labor contracts are becoming increasingly complicated as railroads split on negotiating tactics, potentially stalling operations at some carriers.