Union Pacific–CN Deal Expands North American Rail Access

The Union Pacific–CN rail agreement expands operating rights around Chicago and between Memphis and Eagle Pass, creating additional freight options across Canada, the United States and Mexico.

New Rights on Two Freight Corridors

Under the binding memorandum announced on July 22, 2026⁠, Union Pacific will gain expanded operating rights over CN’s Elgin, Joliet & Eastern Railway corridor through the Chicago area. CN will receive new rights over Union Pacific infrastructure between Memphis, Tennessee, and Eagle Pass, Texas.

Operating rights allow one railroad to run over infrastructure controlled by another. They do not merge the companies or create a jointly owned network. For Union Pacific, the EJ&E access is intended to provide a quicker route around Chicago and reduce exposure to congestion in the metropolitan area.

Jim Vena, Union Pacific’s chief executive, said the railroad had already seen the benefits of the EJ&E route and wanted access to “the quickest way around Chicago.”

Don’t miss…BNSF Says CN Access Deal Undercuts UP–NS Merger Case

CN Expands Its Canada–Mexico Freight Options

For CN, the southern part of the agreement extends its north–south reach from Memphis to Eagle Pass. The companies say this will support freight movements between Canada and Mexico and give customers additional routing options.

“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.

CN’s official announcement⁠ says the railroad operates a network of nearly 20,000 miles and moves more than 300 million tons of freight annually. Union Pacific’s network covers more than 32,000 miles across 23 western states. The memorandum focuses on expanding access across those existing systems.

Start Date and Financial Terms Remain Undisclosed

Union Pacific and CN also announced a separate merger-related settlement⁠ on July 22. That settlement is explicitly contingent on Surface Transportation Board approval and completion of Union Pacific’s proposed acquisition of Norfolk Southern; the connectivity memorandum covered here was announced separately.

Neither company disclosed a start date or financial terms for the Chicago and Memphis–Eagle Pass rights. Customers therefore know which corridors are covered by the binding memorandum, but not when the expanded operations will begin.