The two major North American freight rail operators, Union Pacific (USA) and Canadian National – CN (Canada), have signed a binding Memorandum of Understanding to expand cooperation between their networks. The agreement aims to improve rail connectivity between Canada, the United States and Mexico by creating faster and more efficient routes for freight transport.
Under the new agreement, Union Pacific will benefit from extended operational rights on CN’s Elgin, Joliet & Eastern Railway (EJ&E) corridor in the Chicago metropolitan area, one of the world’s most important freight rail hubs. In turn, CN will receive running rights on Union Pacific’s infrastructure between Memphis (Tennessee) and Eagle Pass (Texas), facilitating freight transport between Canada and Mexico.
Union Pacific is one of the largest rail freight operators in the United States, managing a network of approximately 52,000 km across 23 states in the western part of the country. Canadian National, known as CN, operates one of the most extensive rail networks in Canada and provides direct connections to the United States and to ports on the Atlantic Ocean, the Pacific Ocean and the Gulf of Mexico.
Faster connections for North American trade
Through this collaboration, the two companies aim to reduce transit times, avoid congestion in the Chicago area and increase rail transport capacity along the continent’s north–south axis. Furthermore, the agreement will offer customers new logistics options and contribute to the development of trade between the three North American countries.
“We are delighted to enter into this agreement with Union Pacific to expand CN’s access to Mexico. It is a natural extension of our north–south network and will open up new routes for customers, offer more options and strengthen connections between Canada and Mexico,” said CN President Tracy Robinson.
The agreement reflects the trend among North American rail operators to better integrate transport networks in order to meet the growth in trade flows between Canada, the United States and Mexico. By utilising existing infrastructure and optimising routes, the two companies aim to offer faster, more reliable and more competitive freight services.
“We have seen first-hand the benefits that the EJ&E route around Chicago can bring to a rail operator, and we look forward to gaining access to the fastest route bypassing Chicago,” said Union Pacific’s Chief Executive, Jim Vena.
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