KCS - SP Merger in 1980s

Discussion related to the past and present operations of Kansas City Southern Lines, including affiliates Texas Mexican Railway, Grupo Transportation Ferroviaria Mexicana (TFM), and Panama Canal Railway Co. Official web site can be found here: KCSOUTHERN.COM.

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CPF363
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Joined: Mon Apr 20, 2009 9:00 pm

KCS - SP Merger in 1980s

Post by CPF363 » Wed Jan 09, 2013 10:11 pm

Following the ICC's rejection of the merger between the AT&SF and Southern Pacific, KCS made a significant effort to purchase the entire SP for $1 Billion and assume debt. What were the major reasons why KCS wanted the SP? Would they have been able to operate it successfully more so than the Rio Grande did? Would there be three systems in the west today: BNSF, UP and KCS-SP? Where would the D&RGW had gone in the end?

Engineer Spike
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Re: KCS - SP Merger in 1980s

Post by Engineer Spike » Wed Aug 12, 2015 9:26 pm

That's a weird question. Who knows, would UP want another line to connect with WP? It wouldn't get BN anywhere, since Salt Lake City would be the end of the line. Same goes for Santa Fe connecting from the south.

SP-KCS sounds like the best fit. It might have been able to get a line east of Denver, like the old RI. Another important link would be KC- St. Louis.

Rio Grand might have ended up as a former class 1, now regional, like FEC, or B&M.

Backshophoss
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Re: KCS - SP Merger in 1980s

Post by Backshophoss » Thu Aug 13, 2015 12:49 am

To gain access to Mexico,SP reached Brownsville Tx,Texas-Mex RR reached Laredo Tx,(then just a shortline till KCS bought)
both have Rail Border crossing points.

CPF363
Posts: 662
Joined: Mon Apr 20, 2009 9:00 pm

Re: KCS - SP Merger in 1980s

Post by CPF363 » Wed Sep 02, 2015 6:08 pm

There was a real effort on the part of KCS to purchase the SP during the Santa Fe-SP merger deliberations and after the SF-SP merger was denied by the ICC in 1987. They were ultimately beat out by the Rio Grande. See below for related articles:

http://utahrails.net/sp/sp-atsf-merger.php" onclick="window.open(this.href);return false;

http://www.joc.com/rail-proposes-bid-sp ... 70105.html" onclick="window.open(this.href);return false;

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