Peace for a Price

Railroad Weekly July 27, 2026

Inside This Issue

· Peace for a Price: UP Buys CN’s Silence

· No Longer a Merger Foe: For CN, Goodbye Fury; Hello Missouri

· There’s More in Store: A 2^nd UP-CN Deal Involves a Swap…

· Mexico w/ Fewer Stops… In Exchange For Chicago w/ Smoother Ops

· UP Fared Well in Q2: For NS That’s a Little Less True

· For CSX, Profit Rumbles: Say Goodbye to Last Year’s Stumbles

· When Not Busy Making Big Bargains: CN Producing Great Margins

· This Week: CPKC’s Turn to Report

Track Talk

“The merger is going to close. It’s just too compelling for the country. It would be a mistake for this deal not to close.”

-Union Pacific CEO Jim Vena

The Latest

· One year ago this week (July 29^th, 2025), the Union Pacific Railroad dropped its bombshell. It was merging (gulp) with Norfolk Southern. The announcement triggered a year of intense debate and discussion throughout the industry, with still no final clearance from the STB. Not even close. Today (Monday), UP and NS intend to provide the STB with the remainder of the information it requested two months ago. If satisfied, the Board will then commence a period of back-and-forth between supporters, opponents, and anyone else who cares to comment. According to UP’s interpretation of the law, the Board now has about ten months from now to make a final yes or no decision, perhaps with conditions attached (see merger approval process timeline here).

· What might make the Board more likely to say yes? UP has a new tactic. Last week, in another surprise, the railroad announced a peace agreement of sorts with Canadian National, essentially buying its silence. CN agreed to refrain from opposing the merger, in exchange for a package of goodies.

· More precisely, UP and CN made two separate deals last week. One is contingent on the merger closing. The other will take effect regardless. In that latter deal, UP