The Surface Transportation Board has denied requests from Norfolk Southern and Union Pacific to investigate Canadian Pacific Kansas City's handling of UP-NS interline intermodal trains on a critical shortcut connecting the West Coast and Southeast. The board stated that any service problems on the Meridian Speedway have been resolved, and gateway conditions imposed as part of the 2023 Canadian Pacific-Kansas City Southern merger do not apply to intermodal traffic moving over the 320-mile corridor. This decision was made unanimously by the STB, indicating a lack of evidence supporting intervention at this time.
['The board also noted that NSR and UP have not demonstrated a need for Board intervention at this time, citing the resolution of service issues on the Meridian Speedway as a key factor in their decision. However, it remains to be seen how this decision will impact intermodal customers who had previously diverted freight to trucks due to alleged deterioration of service.', ["In September, NS and UP wrote separate letters to the STB, with NS alleging that deterioration of service had prompted intermodal customers to divert freight to trucks. NS requested regulators to enforce CPKC's promise to maintain service levels on the Speedway, a shortcut for traffic moving between the West Coast and the Southeast. UP separately asked the STB to investigate whether CPKC was complying with its merger-related commitments.", ["CPKC told the STB that the NS and UP complaints were inaccurate and not subject to board oversight. The Meridian Speedway is a joint venture between CPKC and NS, with CPKC operating the corridor. However, service problems arose after CPKC's May 2025 cutover to the legacy CP computer system in former KCS territory in the United States.", ['CPKC acknowledged service problems immediately following the cutover but stated that those were resolved quickly. By late summer, transit times across the Speedway were faster than before the CP-KCS merger. Despite this, UP and NS had sparred with CPKC over Meridian Speedway operations since CPKC reimposed an 8,500-foot train length restriction in August 2025.', ["The move affected just one train, an interline intermodal service that UP and NS run from Los Angeles to Atlanta. CPKC Chief Executive Keith Creel argued that his railroad's customers should not experience delays simply because UP and NS do not want to run their train to siding length. However, this restriction has led to increased dwell times at Hollywood Yard in Shreveport, where UP splits its 11,000-foot train into two sections before handing the trains to CPKC.", ["The STB's decision suggests that the impact of the train-length restriction on service levels may be more complex than initially thought. The board noted that increased dwell time at Hollywood Yard is not indicative of deteriorated service on the Meridian Speedway, and that UP's actions may be attributed to other factors such as compliance with the 8,500-foot restriction.", ['The outcome of this decision will likely have implications for intermodal customers who rely on reliable service on the Meridian Speedway. As the rail industry continues to evolve, it is essential to ensure that regulatory bodies are equipped to address emerging issues and provide timely intervention when necessary.', ["In conclusion, the STB's denial of a probe into CPKC's handling of intermodal trains highlights the complexities of regulating intermodal services. The decision underscores the importance of close collaboration between railroads, regulators, and customers to ensure seamless service delivery."]]]]]]]]
