At LRW annual symposium, government affairs professionals talk challenges, opportunities for rail amid political uncertainty

By Bridget Dean, Associate Editor 

Major elections in Canada, the Unites States and Mexico in the last year have created challenges for railroads navigating the political and corresponding trade landscapes in North America. 

During the League of Railway Women’s (LRW) annual symposium, held June 11 in downtown Chicago, a panel of railroad government affairs professionals shared how the industry (and the industry lobby) are attempting to navigate the uncertainty.

Entitled “Navigating Political Change: Implications for Rail,” the panel discussion was moderated by Blank Rome Government Relations Principal Katie Kachel and featured three panelists: Melissa Connolly, assistant vice president of government affairs, Association of American Railroads; Melissa Cotton, director of government affairs, Canada, CN; and Fernando Ponce, senior manager of institutional relations, Mexico, for Canadian Pacific Kansas City. What follows are highlights of their discussion.  

United States 

In the United States, the legislative process is moving slowly, due to the Republican Party’s narrow majority in the branch, says Connolly. Lawmakers will need to work across party lines and make compromises in order to gain enough support for bills to pass.  

Many businesses in the United States are struggling with economic uncertainty and are more hesitant to expand production or make large financial investments, Connolly says. Since railroads make infrastructure investments based on their customers’ needs, the hesitancy to expand is making it difficult for railroads to plan for long-term growth, she adds. 

U.S. Transportation Secretary Sean Duffy has shown support for utilizing more technology in the railroad industry to improve safety and efficiency, she said.  

Canada 

Ahead of the April election, many Canadians were preparing for a predicted shift from liberal to conservative, but the Liberal Party was reelected. However, the party is several seats short of having a majority in the House of Commons. As in the United States, lawmakers in Canada will need to work across party lines to gain support and votes on legislation.  

New Prime Minister Mark Carney isn’t a career politician, Cotton says. He expects legislature to be approved rapidly. Lobbyists have to work quickly to read, understand and lobby for policy opinions on behalf of CN.  

Cotton cited U.S. technology advancements, such as positive train control, that could help the industry lobby for changes to Canadian rail regulations. Duffy’s support of advancing technology in the United States could impact Canadian railroads, too, she believes. 

Mexico 

Mexico elected its first female president, Claudia Sheinbaum, in June 2024; she took office four months later. Her party, Morena, also controls a large percentage of state governments and both the Senate and Chamber of Deputies. One of Sheinblum’s priorities is expansion of both freight and passenger railroads. The government is planning to build around 1,500 miles of new tracks during her six-year administration, Ponce says. 

Mexican companies are also grappling with trade-related uncertainty. Potential rail-served industrial investors, such as steel and auto makers, are hesitant to begin nearshoring operations in Mexico, as changing tariffs from the United States may impact profits, says Ponce. 

With questions lingering about trade (including the upcoming six-year review of the United Status-Mexico-Canada Agreement in 2026), technology adoption/and implementation and potential regulatory changes, Connolly, Cotton and Ponce expect to continue to be busy monitoring proposed legislation, meeting with elected and appointed officials, and keeping their clients and stakeholders in the loop.