Record Results and Expanded Options for You

To Our Customers,

This railroad is growing, and that growth is a direct result of your trust in us to handle your business. We just closed the strongest second quarter in Union Pacific’s history, and I could not be prouder of what this team delivered for you. 

In Domestic Intermodal, we delivered the capacity you needed to meet record demand, holding our service steady even as your volumes hit new highs. Across grain, petrochemicals, and metals, we found solutions for your growth and worked with you to move new lanes of business. Our formula has not changed – we win when our customers win. That approach has us positioned for a strong second half of 2026, and I am energized about what is ahead.

That same focus on your growth is behind news I want to share with you directly. Yesterday we announced that Union Pacific reached two agreements with CN. Both were built with the same goal in mind: more options, more capacity, and better service for you.

Preserving your competitive options

From the day we announced our plan to bring Union Pacific and Norfolk Southern together, we told you this combination would expand your choices, not narrow them. Our settlement agreement with CN delivers on exactly that:

• CN gains access to shipper facilities where your Class I rail options would otherwise fall from 2-to-1, or 3-to-2, wherever that is commercially and operationally feasible.
• CN acquires Norfolk Southern's ownership interests in the Kansas City Terminal Railway Company (KCT) and the Terminal Railroad Association of St. Louis (TRRA).
• CN gains new access in the Midwest, with overhead rights between Tuscola and East St. Louis, Illinois, and the right to serve customers between St. Louis and Kansas City, Missouri. For the first time, CN will have a footprint in the heart of Kansas City, using Union Pacific's Neff Yard.
• UP reaffirms its gateway protections, keeping existing gateways open.

As part of this agreement, CN will not oppose the Union Pacific-Norfolk Southern merger, and both companies will work together through the Surface Transportation Board (STB) process to bring it into effect. In short, you keep your choices, and in many markets you gain new ones. This settlement is contingent on STB approval and the closing of our merger.

Opening new routes across North America

We reached an additional agreement with CN that makes both railroads faster and more flexible for you:

• Union Pacific gains expanded access over CN's EJ&E corridor, one of the quickest ways to go around Chicago.
• CN gains new access across our network between Memphis and Eagle Pass, strengthening freight moving between Canada and Mexico.

Our Falcon Premium service already moves freight out of Canada today, and this agreement lets CN compete for Canadian traffic more broadly. By extending new rights on our network, we are enabling CN to compete on freight moving between Canada and Mexico in both directions, strengthening cross-border competition.

For you, that means more routing choices, fewer handoffs and smoother movement through some of the busiest corridors on the continent, right as cross-border trade continues to grow. When we can move your freight faster and more reliably, you win. And because this is a separate agreement, it moves forward on its own, independent of the proposed merger.

Growing stronger, together

Everything we do comes back to you. Your success is how we measure ours. The record second quarter, these agreements and the work still ahead all serve that goal. We are investing in capacity, opening new lanes, and strengthening the connections that carry your business, so that no matter where the market goes, Union Pacific is the railroad you can build on.

On Monday, we will provide the supplemental information requested by the STB, and you will hear from me again on Tuesday with more detail. I am excited to share more about how we are enhancing competition even more for you.

Sincerely,

Kenny Rocker
Executive Vice President, Marketing & Sales