Abstract
This project evaluates the optimal transport network in North America by first analyzing the proposed $25 billion merger between the Canadian Pacific Railway and the Kansas City Southern Railway. Then this project studies different sequences of mergers and find the optimal path of mergers to form the transport network in North America. Current simulation results suggest that average over all origin–destination markets, the proposed merger between Canadian Pacific Railway and the Kansas City Southern Railway will decrease the average shipment cost by 6.27%. Among different local markets, regions near or utilize the route from Des Moines, IA – Kansas City, MO – Joplin, MO will have the largest efficiency gain from the proposed merger.
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