Canadian National Railway filed with the Surface Transportation Board on Thursday detailing conditions it will seek if regulators approve the proposed merger between Union Pacific and Norfolk Southern.
The filing expands on a July agreement between CN and UP that would give CN access to new locations and customers to offset competitive harm from the merger. CN says the conditions would maintain rail competition and customer choice while expanding its Midwest network.
“Competition matters because it supports better service, stronger customer options and incentivizes investment,” said Olivier Chouc, CN’s senior vice president and chief legal officer. “The conditions we are proposing would preserve competitive access in key Midwest markets, expand CN’s reach and create additional opportunities to grow with our customers.”
The proposed conditions focus on shippers that would lose rail options. In central and southern Illinois, including cities like Bloomington, Mt. Vernon and Danville, some customers currently served by two Class I railroads would drop to one under the merger. Des Moines, Iowa faces similar reductions.
CN wants new access to Kansas City, including rights between Kansas City and St. Louis and a lease of UP’s Neff Yard. The railroad also seeks improved access to East St. Louis, Illinois and St. Louis, Missouri through overhead trackage rights between Tuscola, Illinois and East St. Louis.
The company says its existing Midwest network and operating performance make it well-suited to serve as a remedy carrier where competition needs protection.
The conditions remain subject to STB approval and completion of the UP-Norfolk Southern merger. Formal condition requests are due Nov. 18.
