UNITED STATES / CANADA – Union Pacific Railroad (UP) and Canadian National Railway (CN) have signed a binding Memorandum of Understanding (MoU) aimed at improving freight rail connectivity across North America by expanding operating rights and creating new cross-border service opportunities.
Announced on 22 July 2026, the agreement is designed to strengthen rail service for customers by improving network efficiency, reducing congestion around key freight hubs and supporting the movement of goods between Canada, the United States and Mexico.
Expanded Access Through Chicago
Under the agreement, Union Pacific will receive expanded operating rights over CN’s Elgin, Joliet & Eastern (EJ&E) Railway corridor around Chicago.
The EJ&E corridor provides an important bypass of one of North America’s busiest rail hubs, allowing freight trains to avoid congestion through central Chicago. The enhanced access is expected to improve network fluidity, reduce transit times and increase operational flexibility for Union Pacific customers.
Union Pacific Chief Executive Officer Jim Vena said the agreement would allow the railroad to make greater use of one of the fastest freight routes around Chicago, benefiting customers through more efficient operations.
New Canada–Mexico Freight Opportunities
The agreement also grants CN new operating rights over Union Pacific’s network between Memphis, Tennessee, and Eagle Pass, Texas, providing improved access to the U.S.–Mexico border.
The new corridor will enable CN to expand its north–south freight offering, creating additional routing options for customers moving goods between Canada and Mexico while strengthening cross-border supply chains.
CN President and Chief Executive Officer Tracy Robinson said the agreement represents a natural extension of the railway’s north–south network and will provide customers with greater choice while supporting long-term growth across the continent.
Supporting a More Connected Rail Network
The companies said the agreement reflects a shared commitment to improving rail competitiveness by enhancing network connectivity and offering customers more efficient freight solutions.
By combining improved access around Chicago with new international freight corridors, the partnership is expected to strengthen supply chain resilience and support growing trade flows across North America.
The agreement was announced alongside a separate memorandum relating to the proposed Union Pacific–Norfolk Southern merger, although the rail connectivity agreement operates independently to improve operational cooperation between Union Pacific and CN.
Source: Official joint announcement by CN and Union Pacific (22 July 2026).