CN files requested conditions in UP-NS merger

CN on Sept. 9 filed with the Surface Transportation Board (STB) a description of the anticipated conditions it plans to seek in connection with the proposed Union Pacific Railroad-Norfolk Southern Railway merger.

The filing builds on the binding memorandum of understanding CN and UP announced in July, which established a framework for CN to secure access to new locations and customers as a remedy for competitive harms of the proposed $85 billion transaction, CN officials said in a press release.

"The conditions we are proposing would preserve competitive access in key Midwest markets, expand CN’s reach and create additional opportunities to grow with our customers," said Olivier Chouc, CN senior vice president and chief legal officer.

CN's proposed conditions would preserve competitive rail access for shippers in central and southern Illinois, including Hillsboro and Carlinville, Bloomington, Mt. Vernon, Granite City, Momence, Federal, Alton and Danville, as well as Des Moines, Iowa, where the proposed transaction would reduce Class I rail options from two to one. CN also would gain access to shippers in Des Moines and Avon, Iowa, where the merger would reduce Class I rail options from three to two.

Under CN's proposed conditions, the railroad would gain new rights between Kansas City and St. Louis, Missouri, and would lease UP's Neff Yard in Kansas City. This would remedy the loss of a Class I carrier in areas where UP and NS' networks overlap, CN officials said. Additionally, CN would gain overhead trackage rights between Tuscola and East St. Louis, Illinois.