CN Files Description of Anticipated Requested Conditions to Preserve Rail Competition and Expand Customer Options in the Midwest
CN outlines proposed STB conditions tied to the UP–NS deal that would expand its Midwest access and preserve shipper competition if approved.
Rhea-AI Summary
CN (CNI) has filed with the U.S. Surface Transportation Board a description of the competitive conditions it plans to request in connection with the proposed Union Pacific–Norfolk Southern transaction.
The anticipated conditions build on a July Memorandum of Understanding between CN and Union Pacific and are intended to preserve rail competition and customer choice in key Midwest markets while expanding access to CN’s network. CN proposes protections for shippers in central and southern Illinois and Iowa that would otherwise go from two or three Class I rail options to fewer, and seeks new or improved access to Kansas City and the St. Louis/East St. Louis area through trackage rights and leasing of UP’s Neff Yard. The company states it is prepared to invest in the expanded services. All conditions remain subject to STB approval and closing of the UP‑NS deal.
Positive
- Proposed new access to Kansas City and rights between Kansas City and St. Louis, including leasing UP’s Neff Yard
- Preservation of competitive options for 2-to-1 and 3-to-2 shippers in parts of Illinois and Iowa through requested conditions
- Improved access to East St. Louis and St. Louis via proposed overhead trackage rights between Tuscola and East St. Louis
Negative
- Benefits from the proposed conditions are contingent on STB approval and closing of the UP–NS transaction
- Formal requests for conditions are not due until November 18, delaying clarity on the final outcome
News Explained
CN’s
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Proposed conditions would give customers greater access to CN’s reliable service and strengthen rail competition in key Midwest markets
MONTREAL, Sept. 10, 2026 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) filed last night with the Surface Transportation Board (STB) a description of the anticipated conditions it plans to seek in connection with the proposed Union Pacific (UP) and Norfolk Southern (NS) transaction.
The filing builds on the binding Memorandum of Understanding announced by CN and UP in July, which established a framework for CN to secure access to new locations and customers as a remedy for competitive harms of the proposed transaction. The conditions are designed to preserve meaningful rail competition and customer choice while expanding access to CN’s network and service in key Midwest markets.
“Competition matters because it supports better service, stronger customer options and incentivizes investment. The conditions we are proposing would preserve competitive access in key Midwest markets, expand CN’s reach and create additional opportunities to grow with our customers.”
– Olivier Chouc, Senior Vice-President and Chief Legal Officer, CN
CN’s proposed conditions would strengthen its Midwest presence by connecting its network to key areas in St. Louis and Kansas City and preserving competitive rail options for shippers in Des Moines, Iowa and central and southern Illinois that would otherwise see the number of Class I railroads serving their facilities substantially reduced as a result of the proposed UP-NS merger.
With its existing Midwest network, strong operating performance and ability to provide competitive service at scale, CN believes it is uniquely positioned to serve as a preferred remedy carrier where conditions are required to preserve competition.
As outlined in CN’s filing, the proposed conditions include:
- Preserving competitive options for 2-to 1 shippers in central and Southern Illinois, including Hillsboro and Carlinville, Bloomington, Mt. Vernon, Granite City, Momence, Federal, Alton, and Danville as well as Des Moines, Iowa, where the proposed transaction would reduce Class I rail options from two to one.
- Preserving competitive options for 3-to-2 shippers in Des Moines and Avon, Iowa, where the proposed transaction would reduce Class I rail options from three to two.
- New access to Kansas City, including rights between Kansas City and St. Louis, as well as leasing UP’s Neff Yard in Kansas City, remedying the loss of a Class I carrier in areas where UP’s and NS’s networks overlap.
- Improved Access to East St. Louis, Illinois and St. Louis, Missouri, including overhead trackage rights between Tuscola, Illinois and East St. Louis, Illinois.
CN believes these conditions would address competitive harms from the proposed transaction, strengthen competition across the Midwest and provide shippers with additional service and routing options. CN is committed to investing in these expanded services to preserve competition for shippers and provide additional transportation options.
These anticipated conditions remain subject to STB approval and the closing of the proposed UP-NS transaction. Formal requests for conditions are due on November 18.
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.
Contacts:
| Media | Investment Community |
| Ashley Michnowski | Jamie Lockwood |
| Senior Manager | Vice-President |
| Media Relations | Investor Relations and Special Projects |
| (438) 596-4329 | (514) 399-0052 |
| media@cn.ca | investor.relations@cn.ca |
FAQ
Which specific shipper locations would CN’s proposed conditions aim to protect?
The anticipated conditions are intended to preserve competitive options for 2-to-1 shippers in central and southern Illinois, including Hillsboro and Carlinville, Bloomington, Mt. Vernon, Granite City, Momence, Federal, Alton, and Danville, as well as Des Moines, Iowa. They also address 3-to-2 shippers in Des Moines and Avon, Iowa.
What forms of access is CN seeking in Kansas City and the St. Louis area?
CN is seeking new access to Kansas City, including rights between Kansas City and St. Louis and the leasing of Union Pacific’s Neff Yard. It also proposes improved access to East St. Louis, Illinois and St. Louis, Missouri through overhead trackage rights between Tuscola, Illinois and East St. Louis, Illinois.
What are the next procedural steps and key dates for CN’s requested conditions?
The anticipated conditions remain subject to Surface Transportation Board approval and the closing of the proposed UP–NS transaction. Formal requests for conditions must be filed by November 18.