StockWatch
·
Railroads
MoUJul 22, 2026, 06:54 PM

CN Secures Midwest Access, Kansas City Footprint via UP MoU

AI Summary

Canadian National Railway (CN) and Union Pacific (UP) signed a binding Memorandum of Understanding (MoU) to ensure CN's competitive access in connection with the proposed UP-Norfolk Southern merger. This agreement, contingent on regulatory approval, grants CN new access in the Midwest, including a footprint in Kansas City, and involves acquiring Norfolk Southern's interests in key terminal railways. In return, CN will not oppose the UP-Norfolk Southern merger, aiming to preserve customer options and competition.

Key Highlights

  • CN and Union Pacific signed a binding Memorandum of Understanding (MoU) for competitive access.
  • The agreement is contingent on Surface Transportation Board (STB) approval and the Union Pacific-Norfolk Southern merger closing.
  • CN acquires Norfolk Southern's ownership interests in Kansas City Terminal Railway Company (KCT) and Terminal Railroad Association of St. Louis (TRRA).
  • CN gains new access in the Midwest, including overhead rights between Tuscola, Illinois, and East St. Louis, Illinois.
  • CN will establish a footprint in Kansas City, utilizing Union Pacific’s Neff Yard.
  • CN will not oppose the proposed Union Pacific-Norfolk Southern merger.