CN (NYSE: CNI) and Amtrak have signed a new eight-year operating agreement governing Amtrak passenger service on CN-owned rail lines in the United States, resolving a proceeding before the Surface Transportation Board (STB) that had been ongoing for more than a decade.

The agreement covers Amtrak services including the City of New Orleans, Illini/Saluki, and Wolverine routes. It establishes a revised performance payment system aligned with the Federal Railroad Administration's (FRA) on-time performance standard, along with regular schedule reviews and processes for resolving operational disputes.

As part of the agreements, CN and Amtrak will work together to equip Amtrak trains operating on CN's network with Onboard Shunt Enhancers (OSEs), a technology designed to improve train detection as trains approach rail grade crossings. OSEs are intended to ensure that crossing warning systems, including gates, flashing lights, and bells, activate as required. The OSE installation is supported by FRA funding and follows more than a decade of research and testing by CN, Amtrak, and the FRA.

"CN is pleased to have reached agreements that allow us to move forward with a clear framework for safely and efficiently sharing our network," said Patrick Whitehead, Executive Vice-President and Chief Operating Officer at CN.

"These agreements give Amtrak and CN a strong foundation to move forward together and deliver efficient, reliable passenger rail service," said Byl Herrmann, Interim President of Amtrak.

Both parties credited the FRA and the STB for their roles in facilitating the resolution of the long-running operating agreement dispute.