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Canadian National Clears Path for Norfolk Southern-Union Pacific Merger With Strategic Agreements

Canadian National Railway will not oppose the proposed Norfolk Southern-Union Pacific merger after securing two separate agreements with Union Pacific that expand its competitive reach across North America. One standalone agreement grants CN haulage rights over UP tracks between Memphis and Eagle Pass, Texas, providing a faster route to Mexico than current arrangements through Chicago. In return, UP gains access to CN's Chicago bypass corridor to circumvent the city's rail congestion. The merger-contingent arrangement gives CN trackage rights through Missouri on two parallel routes and grants the carrier access to the Kansas City market for the first time, including use of UP's underutilized Neff Yard. The deals address competitive concerns for roughly five shippers and approximately two dozen shippers in the St. Louis area, resolving CN's objections to the combination.