Canada Builds Trade Network Around America, Challenging US Rail Dominance

Canada's Prime Minister Mark Carney has been working on diversifying his country's economy away from its dependence on the US market. In an effort to increase exports and reduce reliance on the US, Canada is building a trade network that bypasses American ports and routes.

The Canadian Pacific Railroad (CPKC) has merged with Kansas City Southern, a US regional railroad, creating a network that spans over 20,000 miles from Canada into Mexico. This direct line allows for seamless trade between Canada and Mexico without passing through the US.

CPKC's CEO Keith Creel sees this as an opportunity to increase trade between the two countries, with the goal of reaching $600 million in revenue this year and potentially $1 billion in the long term. The company also offers a 'Texas shortcut' service for Asian shippers to reach the American Midwest without stopping at US ports.

However, CPKC opposes a proposed merger between Union Pacific and Norfolk Southern, which would create a single coast-to-coast network in the US. Creel argues that this would give one company control over nearly 50% of US freight rail traffic, putting supply chains and economies at risk.