Amtrak and CN Sign Eight-Year Operating Agreement, Resolving Decade-Long Regulatory Dispute

On September 16, 2026, Amtrak and Canadian National Railway finalized an eight-year operating agreement, formally ending a regulatory dispute that had stalled before the Surface Transportation Board since 2013. The settlement establishes a new commercial framework for passenger trains running over CN-owned freight corridors in the United States, specifically governing the City of New Orleans, Illini/Saluki, and Wolverine routes.[1][5]

The agreement replaces a contested operational structure with a revised performance payment system. Under the new terms, financial incentives are directly aligned with the Federal Railroad Administration's on-time performance standards. This shifts the relationship from a penalty-based dispute over delays to a shared metric for schedule reliability.[2][4]

The core of the 13-year friction between the two operators centered on shared-corridor traffic management. Amtrak previously blamed CN for prioritizing heavy freight movements over scheduled passenger services, while CN cited Amtrak equipment issues and late station departures as the source of network congestion. The new framework mandates regular reviews of Amtrak's schedules and establishes formal channels to resolve operational bottlenecks before they escalate to federal regulators.[1][3][5]

Alongside the scheduling and payment overhaul, the agreement mandates a targeted hardware rollout across Amtrak's fleet. Supported by federal grant funding from the FRA, Amtrak will equip its passenger rolling stock operating on CN lines with Onboard Shunt Enhancers.[4]

The shunt enhancer technology addresses a specific physical vulnerability in rail operations: loss-of-shunt events, where a train fails to maintain the electrical circuit required to trigger grade-crossing warning systems. By amplifying the electrical signature of the lighter passenger trains, the enhancers ensure that crossing gates, flashing lights, and bells activate reliably as the train approaches.[1][5]

The deployment follows more than 10 years of joint research, engineering, and field testing conducted by CN, Amtrak, and the FRA. The hardware installation is designed to improve safety at intersections while granting dispatchers greater flexibility to route passenger and freight traffic through the same corridors without triggering manual crossing protocols.[2][4][5]

"These agreements give Amtrak and CN a strong foundation to move forward together and deliver efficient, reliable passenger rail service," Amtrak Interim President Byl Herrmann stated following the signing. "With steady encouragement from the STB and grant approval from FRA, we are able to bring this train into the station."[1][5]

The Surface Transportation Board formally dismissed Amtrak's original 2013 complaint the same day. The regulatory body had previously issued interim findings in 2019 and ordered board-sponsored mediation, which concluded without a settlement in early 2020 before negotiations resumed.[1]

CN Chief Operating Officer Patrick Whitehead noted that the resolution provides a clear operational baseline for the nearly 20,000-mile network. "Together with the deployment of OSE technology, these agreements will support safer grade crossings and reliable passenger and freight service," Whitehead said.[3][5]

The eight-year horizon provides both operators with a stable planning window through 2034. By decoupling their operational governance from federal litigation, the two railroads now shift their focus to the physical installation of the shunt enhancers and the integration of the new schedule review processes.[4]