CN Settlement Clears Path for Union Pacific Merger

Rail concessions could preserve alternative service for agricultural shippers affected by the proposed merger.

NASHVILLE, Tenn. (RFD News) — Canadian National Railway will not oppose Union Pacific’s proposed merger with Norfolk Southern after securing expanded access, switching interests, and operating rights. The settlement could reduce opposition during the Surface Transportation Board review while reshaping rail competition across major agricultural corridors.

Canadian National would gain access to shippers losing Class I service because of the merger. It would also receive Norfolk Southern ownership interests in switching railroads serving Kansas City and St. Louis, plus broader access between those markets.

The agreement includes overhead trackage rights between Tuscola, Illinois, and East St. Louis. A separate arrangement gives Union Pacific access around Chicago and Canadian National operating rights between Memphis and the Eagle Pass, Texas, border crossing.

Those concessions could preserve alternative service for grain elevators, processors, and other rural shippers affected by network consolidation. The Memphis-to-Eagle Pass route is especially important for agricultural trade with Mexico.

Recent flooding temporarily suspended Eagle Pass rail access, underscoring the corridor’s importance and vulnerability. Shippers will watch merger conditions, service protections, and restoration of dependable cross-border rail movements.

Farm-Level Takeaway: Merger concessions may preserve rail competition, but cross-border service reliability remains critical.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Small businesses are showing more confidence in hiring and investment despite continued workforce challenges.
USDA lowered ending stocks for corn, wheat and cotton while raising price projections.
Limited cattle availability continues pressuring processing margins despite record North American beef sales.
Growing computing demand could increase competition for natural gas used by agriculture and rural utilities.
Corte Argentino USA recalled nearly 30,000 pounds of raw beef produced between May 15 and May 20 and distributed in Texas and Florida, according to the USDA’s Food Safety and Inspection Service.
Data centers produced economic output similar to food manufacturing, but the local employment impact was smaller.