What the Opposition is Saying: Don’t Compete With Us

Every one of those claims is inaccurate, which is not surprising considering the source: two railroads with a lot to lose as the Union Pacific-Norfolk Southern merger and this agreement make us faster, more competitive and easier to do business with. Instead of their version, here is the reality.

Eagle Pass Access Creates a Second Direct Canada-Mexico Option

CN’s new rights do not affect traffic moving to or from locations in the United States. CN’s new rights cover only traffic moving between Canada and Mexico. BNSF and Union Pacific will continue competing head-to-head for United States business moving to and from both Canada and Mexico, exactly as we do today.

CPKC’s motive for opposing CN’s new rights is clear – a three-carrier CN-Union Pacific-FXE route with two interchanges struggles to compete with CPKC’s single-line route. Our agreement with CN creates a more direct option from Canada to Mexico, positioning CN to compete more effectively with CPKC. The result is more competition, more choice and better outcomes for customers.

The EJ&E Rights Will Reduce Congestion for All Railroads in Chicago

Union Pacific’s expanded rights on the EJ&E are about planning for the future and positioning the railroad for long-term success. Chicago is the most challenging freight hub in North America, and having the ability to route traffic around the city is critical to improving service speed and reliability.

By moving more traffic around Chicago instead of through it, we can reduce congestion not only on our network but across the entire rail system in the region. That creates benefits for every Class I railroad operating in Chicago and, most importantly, for the customers who depend on reliable service.

These Agreements Are No Substitute for a Merger

Railroads do not routinely trade routes and rights that took generations to build. Union Pacific’s conversations with CN were sparked by our merger proposal, bringing both companies to the table and creating opportunities neither could unlock alone.

Our opponents point to existing partnerships as evidence that mergers are unnecessary. In fact, CPKC cites the Meridian Speedway partnership among Norfolk Southern, KCS and now CPKC as an example of how interline arrangements can successfully connect networks. What that argument overlooks is exactly why mergers create greater value. Partnerships can provide benefits, but they are limited in scope and the benefits are often temporary because incentives and priorities can change over time. Meridian itself illustrates the point. Norfolk Southern had operated 11,000-foot trains over the route for years, but after ownership and incentive structures changed, that capability was no longer available and customers suffered. The lesson is not that partnerships are bad. It is that partnerships are inherently different from a network operating under unified leadership, aligned priorities and a long-term commitment to investing in the entire route.

Union Pacific’s two agreements announced with CN will create meaningful benefits for customers. But they pale in comparison to the transformational impact of the Union Pacific-Norfolk Southern merger. The CN agreements improve two important corridors. The merger will create new single-line service on approximately 10,000 existing interline routes and unlock single-line service opportunities in an additional 88,000 county-to-county lanes where freight today moves primarily by truck. That dramatically improves rail's ability to compete and creates far more opportunities for customers to win.

The Future Is the Whole Point

Union Pacific is looking beyond today's network to what North American freight transportation needs to become. That means giving customers access to CN's competitive product in a corridor that deserves another strong option to compete with CPKC. It means improving network fluidity by routing traffic around Chicago instead of forcing it through congestion.

Most importantly, it means recognizing that the Union Pacific-Norfolk Southern merger is not simply a collection of individual agreements. It is the equivalent of hundreds or thousands of pro-competitive network improvements operating under a single vision and a single operating plan. Partnerships can help improve rail service. Unified networks can transform it.

Rail should win because it is the best way to move freight. That is what we are building.

Please review Union Pacific’s cautionary note regarding forward-looking statements.