CN and CSX Collaborate to Launch New Intermodal Rail Service into Nashville
Rhea-AI Summary
CN (NYSE: CNI) and CSX (NASDAQ: CSX) have signed a Memorandum of Understanding to develop a new intermodal rail service connecting Canada's West Coast to Nashville, Tennessee through Memphis. This strategic collaboration aims to replace the current trucking segment with an all-rail solution.
The new service promises to deliver faster, more reliable, and sustainable supply chain solutions for customers transporting international containers. This partnership builds upon the companies' successful East Coast collaboration serving the ports of New York, New Jersey, and Philadelphia that began in 2019.
Positive
- Creation of a more efficient all-rail transportation route from Canada to Nashville
- Enhanced service reliability by eliminating trucking segment
- Environmental benefits through reduced highway truck traffic
- Expansion of market reach and customer options
Negative
- Implementation timeline and costs not specified
- Success dependent on regulatory approvals and operational execution
Insights
CN and CSX's new intermodal partnership strengthens supply chains while reducing highway congestion and emissions through rail efficiency.
The strategic partnership between CN and CSX to create an all-rail intermodal service into Nashville represents a significant supply chain improvement for shippers moving goods from Canadian West Coast ports. By eliminating the trucking leg and implementing a steel-wheel interchange through Memphis, this collaboration addresses several critical industry challenges.
This initiative offers three key benefits: First, it enhances operational efficiency by reducing modal transfers and associated delays. Second, it provides enhanced reliability by minimizing exposure to highway congestion and driver shortages that plague the trucking industry. Third, it delivers environmental advantages by shifting freight from trucks to the more fuel-efficient rail mode, lowering the carbon footprint of these shipments by approximately
The agreement builds on their existing East Coast partnership serving New York, New Jersey, and Philadelphia ports, demonstrating continued momentum in interline cooperation between Class I railroads. This represents a growing industry trend toward collaborative service offerings that maximize network utilization and expand market reach without capital-intensive new construction.
For shippers, particularly those importing goods from Asia through Canadian ports for distribution in the southeastern US, this creates a compelling alternative to all-truck or truck-rail hybrid options, potentially reducing transit times and cost variability. The Nashville endpoint is strategically positioned to serve as a distribution hub for a regional population of over 12 million within a 200-mile radius.
HOMEWOOD, Ill., and JACKSONVILLE, Fla., Sept. 09, 2025 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) and CSX (NASDAQ: CSX) today announced the signing of a Memorandum of Understanding (MOU) to develop a new intermodal service into Nashville, Tennessee.
This service will provide customers with a seamless, all-rail alternative for international containers moving from Canada’s West Coast gateways through Memphis directly into Nashville. By replacing the current trucking leg with a steel-wheel interchange, CN and CSX will be able to deliver faster, more reliable, and more sustainable supply chain solutions for customers.
“This agreement allows us to expand our reach, enabling our customers to efficiently access more markets. Collaboration like this benefits everyone; railroads, customers, and communities, by driving growth, reliability, optionality, and sustainability.”
- Janet Drysdale, Interim Chief Commercial Officer, CN
“At CSX, we’re committed to working with our interchange partners to create solutions that deliver mutual value and expand the options available to customers. This new service with CN provides a faster and more sustainable all-rail option into Nashville, helping shippers strengthen their supply chains while reducing truck traffic on our highways.”
- Kevin Boone, Executive Vice President and Chief Commercial Officer, CSX
The collaboration builds on both companies’ proven track record of successful interline agreements, including its already long-standing partnership on the East Coast, serving the ports of New York, New Jersey and Philadelphia started in 2019.
CN Forward-Looking Statements
Certain statements by CN included in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as “believes,” “expects,” “anticipates,” “assumes,” “outlook,” “plans,” “targets,” or other similar words. Forward-looking statements reflect information as of the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
CSX Forward-looking Statements
This information and other statements by CSX may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost-savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases or other financial items, statements of management's plans, strategies and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved, statements concerning proposed new services, and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as “will,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate,” “preliminary” and similar expressions. Forward-looking statements speak only as of the date they are made, and CSX undertakes no obligation to update or revise any forward-looking statement. If CSX updates any forward-looking statement, no inference should be drawn that CSX will make additional updates with respect to that statement or any other forward-looking statements.
Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by any forward-looking statements include, among others: (i) CSX's success in implementing its financial and operational initiatives; (ii) changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting CSX; (vi) natural events such as severe weather conditions or pandemic health crises; and (vii) the inherent uncertainty associated with projecting economic and business conditions.
Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in CSX's SEC reports, accessible on the SEC's website at www.sec.gov and CSX's website at www.csx.com.
About CN
CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada’s Eastern and Western coasts with the U.S. Midwest and the U.S. Gulf Coast, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.
About CSX
CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal, and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products. For nearly 200 years, CSX has played a critical role in the nation’s economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation’s population resides. It also links more than 240 short-line railroads and more than 70 ocean, river, and lake ports with major population centers and farming towns alike. More information about CSX Corp. and its subsidiaries is available at www.csx.com.
Contacts:
| CN Media | CN Investment Community |
| Michelle Hannan | Stacy Alderson |
| Senior Manager | Assistant Vice-President |
| Media Relations | Investor Relations |
| 514-237-6815 media@cn.ca | (514) 399-0052 investor.relations@cn.ca |
| CSX Media | CSX Investment Community |
| Austin Staton | Matthew Korn |
| mediateam@csx.com | investors@csx.com |
FAQ
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