CN and Union Pacific sign rail network access swap agreement

CN (NYSE: CNI) and Union Pacific (NYSE: UNP) signed a binding Memorandum of Understanding on July 22, 2026, to exchange operating rights on each other's rail networks across North America.

Under the agreement, Union Pacific will receive expanded operating rights over CN's Elgin, Joliet & Eastern Railway corridor through Chicago. In exchange, CN will gain new rights over Union Pacific's network between Memphis, Tennessee, and Eagle Pass, Texas, to support freight movements between Canada and Mexico.

"We are thrilled to have an agreement with Union Pacific to expand CN's access to Mexico. 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," said Tracy Robinson, President and CEO of CN.

Union Pacific CEO Jim Vena cited the Chicago bypass as a key benefit for his railroad. "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," he said.

Financial terms of the agreement were not disclosed in the announcement.

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