Quick Take: UNP / NS and CN reach terms and CN drops objections - there is going to be some gold buried in the details

Research evidence excerpt

Quick Take: UNP / NS and CN reach terms and CN drops objections - there is going to be some gold buried in the details

23 July 2026

Airfreight & Surface Transportation

Quick Take: UNP / NS and CN reach terms and CN drops

objections - there is going to be some gold buried in the details

Last night, UNP and CNI announced that they have signed a memorandum of understanding David Vernon

+1 917 344 8333 (MOU) that involves and exchange of access rights and moves CN out of the merger

david.vernon@bernsteinsg.com opposition column. Still digging for the full details, but our impression is that there is a lot of

potential value for both companies in this accommodation.

Justine Weiss

+1 917 344 8433 What’s happening. CN is dropping its opposition to the UP NS merger in exchange justine.weiss@bernsteinsg.com

for a reciprocal swap of access rights and a competition remedy. In addition to one less

Specialist Sales opponent of the deal, UP is getting network fluidity and a better gateway through Chicago

(supporting East-West California-Northeast traffic, and North-South Laredo/Eagle Pass

Steve Song to Detroit traffic). That fluidity solution comes in the form of access to the EJ&E belt line

+1 917 344 8401

steve.song@bernsteinsg.com around Chicago which UP+NS will have access to via what we assume are overhead rights

(unclear if the deal includes access to CN’s Kirk yard in Gary Indiana but seems less likely).

CN is yielding that access in exchange for: marketing rights to the handful of shippers that

lose a carrier in the transaction; overhead rights to and Neff yard access in Kansas City

and the right to market between Kansas City and St. Louis; ownership of NSC’s stakes in

the Kansas City Terminal (KCT) Railway and the Terminal Railroad Association of St. Louis