CN Files Description of Anticipated Requested Conditions to Preserve Midwest Rail Competition

CN filed with the Surface Transportation Board a description of the anticipated conditions it plans to seek in connection with the proposed Union Pacific and Norfolk Southern transaction.

The filing builds on the binding Memorandum of Understanding announced by CN and UP in July, which established a framework for CN to secure access to new locations and customers as a remedy for competitive harms of the proposed transaction. The conditions are designed to preserve meaningful rail competition and customer choice while expanding access to CN’s network and service in key Midwest markets.

CN said its proposed conditions would strengthen its Midwest presence by connecting its network to key areas in St. Louis and Kansas City and preserving competitive rail options for shippers in Des Moines, Iowa and central and southern Illinois that would otherwise see the number of Class I railroads serving their facilities substantially reduced as a result of the proposed UP-NS merger.

As outlined in CN’s filing, the proposed conditions include:

• Preserving competitive options for 2-to-1 shippers in central and Southern Illinois, including Hillsboro and Carlinville, Bloomington, Mt. Vernon, Granite City, Momence, Federal, Alton, and Danville, as well as Des Moines, Iowa, where the proposed transaction would reduce Class I rail options from two to one.
• Preserving competitive options for 3-to-2 shippers in Des Moines and Avon, Iowa, where the proposed transaction would reduce Class I rail options from three to two.
• New access to Kansas City, including rights between Kansas City and St. Louis, as well as leasing UP’s Neff Yard in Kansas City, remedying the loss of a Class I carrier in areas where UP’s and NS’s networks overlap.
• Improved Access to East St. Louis, Illinois and St. Louis, Missouri, including overhead trackage rights between Tuscola, Illinois and East St. Louis, Illinois.

CN believes these conditions would address competitive harms from the proposed transaction, strengthen competition across the Midwest and provide shippers with additional service and routing options. CN is committed to investing in these expanded services to preserve competition for shippers and provide additional transportation options.

These anticipated conditions remain subject to STB approval and the closing of the proposed UP-NS transaction. Formal requests for conditions are due on Nov. 18.