CN, Union Pacific Expand Competitive Rail Access

Union Pacific and Canadian National Railway have signed binding memoranda of understanding to secure CN’s competitive access as part of Union Pacific’s planned acquisition of Norfolk Southern, preserving customer options and expanding CN’s Midwest footprint. The agreements, contingent on the Surface Transportation Board’s approval and closing of the merger, grant CN overhead rights between Illinois’ Tuscola and East St. Louis, access to shipper facilities where options would be reduced, and customer service rights between St. Louis and Kansas City, plus CN’s acquisition of Norfolk Southern’s ownership interests in Kansas City Terminal Railway and the Terminal Railroad Association of St. Louis. For the first time, CN will operate in central Kansas City via Union Pacific’s Neff Yard, and CN will gain expanded access to Mexico through CN’s corridor, while UP gains enhanced access to CN’s EJ&E route around Chicago and CN’s network in the Memphis-to-Eagle Pass corridor. The settlements are designed to maintain competition and gateway protections for customers and to ensure collaboration during the STB review process, with CN not opposing the UP–NS merger. Several reports note additional operational details, including CN’s increased Midwest presence and improved cross-border and intermodal flexibility as part of the broader competitive-access framework.