CNR’s Propane Shipments to Watson Island Hit All-Time High + Carloads

Research evidence excerpt

CNR’s Propane Shipments to Watson Island Hit All-Time High + Carloads

June 8, 2026 RBC Dominion Securities Inc.

CNR’s Propane Shipments to Watson Island Hit All-Time High + Carloads Walter Spracklin, CFA James McGarragle, CFA, CPA

(Analyst) (Analyst)

(416) 842-7877 (416) 842-7862

Rail Merger Barometer Carload Update – We provide a snapshot of railroad carload trends walter.spracklin@rbccm.com james.mcgarragle@rbccm.com

in the exhibit below, emphasizing how the QTD volumes are

Rail Merger Barometer. We recently trending relative to our estimates. This is followed by detail on the Industrial & Transportation Sector News

introduced the Rail Merger Barometer. This sub-segments driving the volume growth. CNR’s Propane Shipments to Watson Island

Barometer is tracking 1) the implied probability Hit All-Time High. CNR announced last week

of success based on NSC and UNP’s share Most North American rails posted volume growth this week, that the Watson Island corridor reached an all-

prices vs. the implied deal price, 2) key though the mix was more varied. CN and UNP were exceptions, time monthly record for propane shipments in

stakeholder commentary related to the merger, each posting y/y volume declines. Intermodal remained the top May, with carloads up +40% y/y and surpassing

and 3) RBC ElementsTM analysis of relevant contributor to growth, with Grain and Farm & Food Products also a the prior monthly record set in August 2024. We

news flow. These results are summarized on notable source of strength. Coal continued to lag, remaining the see this as a directionally positive read-through

slide 3. one soft spot across an otherwise broadly positive week. for CNR and note that it follows the recent ACE

Rail Terminal announcement, supporting our