Canadian National Railway (CNI) has entered an eight-year operating agreement with Amtrak that aims to enhance passenger services on CNI-owned U.S. rail lines. Announced recently, this agreement resolves a long-standing dispute before the Surface Transportation Board and introduces a clearer framework for operations, schedules, and performance payments. This change is expected to improve coordination between CNI and Amtrak, benefiting both passenger and freight operations.
The updated performance payment system aligns closer with the Federal Railroad Administration’s on-time performance standard, encouraging operational efficiency. The initiative will include regular schedule reviews and defined procedures for resolving operational issues, ultimately aiming to enhance train reliability and service quality.
In conjunction with the operational agreement, CNI plans to deploy Onboard Shunt Enhancers, funded in part by the FRA, to improve train detection at grade crossings, thereby enhancing safety. Overall, these developments are projected to facilitate smoother operations across shared corridors, while CNI’s shares have seen a 19.1% increase over the past six months.
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