Union Pacific and CN Announce Agreement to Improve North American Rail Connectivity

CN (NYSE: CNI) and Union Pacific (NYSE: UNP) signed a binding Memorandum of Understanding on July 22, 2026 to enhance North American rail connectivity.

Rhea-AI Summary

CN (NYSE: CNI) and Union Pacific (NYSE: UNP) signed a binding Memorandum of Understanding on July 22, 2026 to enhance North American rail connectivity. The agreement expands Union Pacific’s operating rights on CN’s Elgin, Joliet & Eastern Railway (EJ&E) corridor around Chicago.

In return, CN receives new operating rights on Union Pacific’s network between Memphis, Tennessee, and Eagle Pass, Texas, supporting freight movements between Canada and Mexico. According to CN and Union Pacific, the arrangement is intended to create new service options and strengthen north–south rail links.

Argus Jul 23 session

+2.09% close to close Open Argus

Details

News Market Reaction – CNI

On Jul 23, the first trading day after this news, CNI closed 2.09% above the previous close.

Data tracked by StockTitan Argus for the Jul 23 session.

Key Figures

Announcement date: July 22, 2026

Announcement date

July 22, 2026

Binding memorandum of understanding announcement

Historical Context

5 past events · Latest: Jun 25

5 events

1. Jun 25

   Rail lease agreement

   24h Move

   +3.8%

   Conditional lease secured for advanced recycling facility at CN's Scotford Yard

2. Jun 25

   Sustainability update

   24h Move

   +3.8%

   2025 sustainability data supplement highlighted environmental and governance progress

3. Jun 05

   Transportation agreement

   24h Move

   +0.7%

   BHP's Jansen potash mine gained rail service to global export markets

4. Jun 04

   Shipment record

   24h Move

   +0.0%

   Propane shipments reached a new monthly record from Alberta to British Columbia

5. Jun 03

   Conference presentation

   24h Move

   -1.5%

   Executives scheduled to address the Wells Fargo Industrials and Materials Conference

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

memorandum of understanding, operating rights

2 terms

memorandum of understanding regulatory

"announced the signing of a binding Memorandum of Understanding"

A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines their shared intentions and plans to work together. It acts like a handshake in writing, clarifying each side’s roles and expectations before any official contract is signed. For investors, an MOU signals that parties are serious about collaboration, which can influence future business opportunities and potential growth.

operating rights technical

"provides Union Pacific with expanded operating rights over CN's"

A legal permission or contract that allows a company to run and manage a specific asset, operation, or service—such as a power plant, pipeline, toll road, or mining site—under defined terms, conditions, and time limits. It matters to investors because these rights determine who collects revenue, who bears operating costs and regulatory obligations, and how long control lasts; think of it like a lease that grants the keys, rules, and responsibilities for running a business asset.

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Agreement expands operating rights in Chicago and creates new Canada-Mexico service opportunities for customers

MONTREAL, July 22, 2026 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) and Union Pacific (NYSE: UNP) today announced the signing of a binding Memorandum of Understanding that will strengthen rail service across North America, improving both railroads' ability to serve customers.

The agreement provides Union Pacific with expanded operating rights over CN's Elgin, Joliet & Eastern Railway (EJ&E) corridor through Chicago, while granting CN new rights over Union Pacific's network between Memphis, Tennessee, and Eagle Pass, Texas, to support freight movements between Canada and Mexico.

“We are thrilled to have an agreement with Union Pacific to expand CN’s access to Mexico. This is a natural extension of our north-south franchise and will open new routes for customers, provide greater choice and strengthen connections between Canada and Mexico,” said Tracy Robinson, President and CEO of CN. “By extending our reach, we are creating new opportunities for growth while continuing to deliver the safe, reliable service our customers expect. This is another example of CN’s commitment to strengthening rail competitiveness across North America.”

"I’ve seen the benefits first-hand of what the EJ&E route around Chicago can do for a railroad, and we look forward to having access to the quickest way around Chicago,” said Jim Vena, CEO of Union Pacific.

Forward-Looking Statements
Certain statements by CN and Union Pacific 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. The companies caution that their 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. The companies assume 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 or Union Pacific do update any forward-looking statement, no inference should be made that they will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

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 & Special Projects
(438) 596-4329	(514) 399-0052
media@cn.ca	investor.relations@cn.ca

ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.

Union Pacific Media Contact: media@up.com
www.up.com
www.facebook.com/unionpacific
www.twitter.com/unionpacific

FAQ

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What did CN (NYSE: CNI) and Union Pacific announce on July 22, 2026?

CN and Union Pacific announced a binding Memorandum of Understanding to expand mutual operating rights and improve North American rail connectivity. According to both companies, the deal enhances service options across Chicago and along a key Canada–Mexico freight corridor via Memphis and Eagle Pass.

How does the CN and Union Pacific agreement improve access around Chicago for CNI and UNP?

The agreement grants Union Pacific expanded operating rights over CN’s Elgin, Joliet & Eastern Railway (EJ&E) corridor through Chicago. According to the companies, this provides access to a quick route around Chicago, which can support more efficient freight movements for shippers.

How will the CN (CNI) and Union Pacific deal support Canada-Mexico rail service?

The deal gives CN new operating rights on Union Pacific’s network between Memphis, Tennessee, and Eagle Pass, Texas. According to CN, this will support freight movements between Canada and Mexico and extend its north–south franchise for customers needing cross-border rail options.

Is the CN and Union Pacific July 2026 agreement legally binding for CNI shareholders?

Yes. CN and Union Pacific describe the arrangement as a binding Memorandum of Understanding. According to the companies, this formalizes expanded operating rights on the EJ&E corridor and the Memphis–Eagle Pass route, setting a contractual foundation for future cross-border rail services.

What benefits does CN expect from expanded access to Mexico under the Union Pacific agreement?

CN expects expanded access to Mexico to open new routes and provide customers greater choice. According to CN, this extension of its north–south franchise is intended to create growth opportunities while maintaining safe, reliable rail service between Canada, the United States, and Mexico.

Does the CN–Union Pacific agreement include specific financial terms for CNI investors?

The announcement does not disclose specific financial terms or revenue figures for CN investors. According to CN and Union Pacific, the focus of the agreement is expanded operating rights and service opportunities rather than immediately quantified financial impacts or stated monetary transaction values.