Canadian Pacific Railway has dropped its effort to take over Norfolk Southern Corporation.

"We have long recognized that consolidation is necessary for the North American rail industry to meet the demands of a growing economy, but with no clear path to a friendly merger at this time, we will turn all of our focus and energy to serving our customers and creating long term value for CP shareholders," Canadian Pacific Chief Executive Hunter Harrison said Monday.

Chicago Ald. Raymond Lopez (15th) welcomed the news.

"Had this hostile takeover succeeded, the attempt by Canadian Pacific Railways to acquire Norfolk Southern would have derailed major economic development plans on the city's Southwest Side," he said. "Norfolk Southern has more than 600 Chicago-based employees, half of whom are minorities. There was a great deal at stake, on a personal, neighborhood and metropolitan level. I am pleased to learn that Norfolk Southern has overcome this hostile takeover effort and will remain an important partner in the economic revitalization of our region."

Lopez and other aldermen previously spoke out against the proposed freight merger, citing concerns over what it could mean for local Norfolk Southern projects, including the "New Era Trail" in Englewood. The rails-to-trails project will serve South Side communities such as the 15th Ward.

"A key reason we opposed the takeover is that a new owner who is not deeply invested in the future of the Chicago region would have tossed out all the carefully crafted plans which have been in the works with Norfolk Southern," Lopez explained. "For example, we have partnered to develop the rails-to-trails project known as the New Era Trail. This will promote tourism, recreational bike and hike development on the south side, and was made possible as part of a land swap that will facilitate another intermodal facility expansion utilizing vacant city lots."