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CN, ICS, KCS form 15-year marketing alliance

WASHINGTON – In a joint news release, the Canadian National, Illinois Central and Kansas City Southern railroads said they have formed a 15-year marketing alliance that will offer shippers new competitive options in a rail freight transportation network linking key north-south continental freight markets.

CN and KCS have also signed a separate access agreement regarding certain haulage and trackage rights, which is contingent on Surface Transportation Board approval of CN’s previously announced merger with IC. Neither CN nor KCS will acquire equity interest or other financial holdings in the other.

The three carriers said they plan to launch their marketing alliance immediately and noted the alliance doesn’t require STB approval.

Under the alliance, services will link points in Canada with major U.S. Midwest markets, including Detroit, Chicago, Kansas City, and St. Louis along with key southern markets, including Memphis, Dallas and Houston. Shippers will have access to Mexico’s largest rail system, Transportacion Ferroviaria Mexicana SA de CV.

Under terms of the alliance, the three carriers will coordinate sales and marketing operations, fleets, and information systems, although not for traffic movements where any two of them provide the only direct rail service.

The alliance will target new markets in key north-south international and domestic traffic corridors and will seek to increase rail business in existing markets, primarily in auto and intermodal as well as in key carload markets, including chemicals and forest products.

The carriers plan to use two main interchanges in Jackson, Miss., and Springfield, Ill. The Jackson facility will be jointly operated

Judge order Union Pacific unit to give union workers back pay

WASHINGTON -- A National Labor Relations judge ordered Union Pacific’s Overnite Transportation Co. to pay about $3 million in back pay to Teamsters union members who he said were unfairly denied raises.

The company must also recognize the Teamsters as the official labor representative of workers at four Overnight trucking terminals. The judge said UP’s Overnite company violated federal labor law during representation elections.

The Teamsters say they now represent 33 percent of Overnite’s employees.