Canadian National Railway's U.S. subsidiaries have reached an agreement with Amtrak to resolve a decade-long dispute over passenger service delays, equipment issues, and late station departures. Canadian National Railway is the parent company of U.S. rail subsidiaries Illinois Central Railroad Company and Grand Trunk Western Railroad Company, which own the lines Amtrak uses for intercity routes including the City of New Orleans, Illini, Saluki, and Wolverine. The dispute centered on Amtrak blaming CNI for prioritizing freight over passenger routes, while CNI blamed Amtrak for freight delays tied to equipment issues or late station departures, and CNI had pushed proposals to the Surface Transportation Board that would hold Amtrak financially responsible for delays. Under their eight-year operating agreement, the two sides agreed to a revised performance payment system more closely aligned to the Federal Railroad Administration's on-time performance standard, regular reviews of Amtrak's schedules, and a process to address operational issues and resolve disputes, and they will also work together to equip Amtrak trains with Onboard Shunt Enhancers. Canadian National COO Patrick Whitehead said the company is pleased to have reached agreements that allow it to move forward with a clear framework for safely and efficiently sharing its network, adding that together with the deployment of OSE technology, these agreements will support safer grade crossings and reliable passenger and freight service. Although the agreement ends the decade-long dispute, Canadian National shares are lower as the negotiations highlight the railroad's persistent on-time performance challenges.
Canadian National Railway CompanyCN's U.S. subsidiaries settled the decade-long Amtrak dispute with a revised performance payment framework aligned to FRA standards, resolving a regulatory/legal conflict.
