CP Rail hires thousands as it awaits regulatory go-ahead for KCS merger

Canadian Pacific Railway Ltd. is on a hiring spree as it awaits regulatory go-ahead for its acquisition of Kansas City Southern.

Canadian Pacific Railway Ltd. is on a hiring spree as it awaits regulatory go-ahead for its acquisition of Kansas City Southern.

In a conference call to discuss fourth-quarter financial results, CP's CEO Keith Creel said the Calgary-headquartered railway is in growth mode as it awaits a decision by the U.S. Surface Transportation Board.

The ruling, expected sometime this quarter, is the final hurdle CP must clear in its bid to purchase KCS for US$31 billion -- a deal which would create the only single-line railroad linking the United States, Mexico and Canada.

In anticipation of a positive ruling and the growth opportunities that will result from the merger, Creel said CP started hiring in large numbers last spring.

"In spite of a historically tight labour market in '22, it was a record year of hiring at CP," Creel said. "We added more than 1,600 conductors over the course of last year, and we made some significant progress with our labour agreements."

During the course of 2022, CP's total workforce swelled to 13,000, an increase of seven per cent year-over-year.

"That was certainly a significant expense in 2022, and it will be a significant expense this year as we prepare for growth," said chief financial officer Nadeem Velani on the call.