The Union Pacific and CN agreement would reshape freight access through Chicago and open a new Canada–Mexico corridor via Memphis and Eagle Pass for customers across North America.

CN locomotive operating in Chicago with the city skyline
A CN locomotive operates in Chicago, Illinois. Photo: CN.

Union Pacific Railroad and CN have signed a binding memorandum of understanding⁠ covering reciprocal operating rights on key sections of their networks. The companies presented the arrangement as a way to strengthen rail connectivity and create additional routing options for freight customers.

The agreement would give Union Pacific expanded operating rights over CN’s Elgin, Joliet & Eastern Railway corridor through Chicago. CN, meanwhile, would gain new rights over Union Pacific’s network between Memphis, Tennessee, and Eagle Pass, Texas⁠, supporting freight movements between Canada and Mexico.

Union Pacific and CN agreement targets Chicago access

The Chicago provision is the central operational change described by Union Pacific. Access to the EJ&E corridor would provide another route around the metropolitan area, which CEO Jim Vena called the quickest way around Chicago.

“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,” Vena said.

The announcement does not provide an implementation date, train schedule or detailed operating plan for the expanded rights. It also does not state when customers could begin using any new service developed under the memorandum.

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Union Pacific and CN agreement supports Canada–Mexico freight

For CN, the Memphis–Eagle Pass rights would extend access toward the Mexican border and support freight movements between Canada and Mexico⁠. The railroad said the extension would create new routes, increase customer choice and strengthen cross-border connections.

“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,” CN President and CEO Tracy Robinson said.

The agreement remains a binding memorandum between the two railroads rather than a launched service. Neither company disclosed financial terms or a timetable for completing the operational arrangements.

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