Chicago has always been the bottleneck. CN’s decision to no longer oppose the UP-NS merger comes with better Mexico access for CN, terminal ownership, + a few other perks…but UP gains running rights over the all-important former EJ&E, which is conveniently the fastest way around Chicago. Harris + David unpack what that concession reveals: if the merger needed a bypass bolted onto it, perhaps the merger was never actually going to fix the problems in Chicago in the first place.
Also on the table: Q2 earnings, where volumes are up across the board (though Harris argues the story is being written on the truck side, not the rail side, as capacity exits + rates climb), as well as data centers, the building boom they have unleashed, + how that looks with crews at a seasonal low.
Sinclair called Chicago the Jungle. The stockyards may be long gone, but the congestion remains the same.
Talk Track, hosted by Harris Ligon + David Correll of Telegraph™, is a spin-off series dedicated to timely rail industry news. From service shakeups to technology breakthroughs, each episode delivers a behind-the-scenes perspective on all the happenings shaping the future of freight rail.
Harris + David will bring their decades of rail experience to help them parse through the latest industry headlines, evolving regulations, + the long-term forecasts for how railroads move freight across North America. Find us at telegraph.io/insights, Apple Podcasts, Spotify, or wherever you listen to your favorite podcasts.