These talks are actually happening, who knows the outcome though I suspect it could be a ploy to pull CSX into the camp to keep from being out maneuvered. I fear the final round of mergers may be on us. CSX-UP-and either CN or CP, UP alone could eat any of them. kiss the JAX HQ goodbye. NS if they get eaten by CP will merge with BNSF pack up and head to Fort Worth. Kansas City Southern is a wildcard player with it's KC-Mexico City route.
I know that UP and BNSF are furious with CSX and NS for their inability to clear their unit train backlogs and have crews ready.
CP has the weakest position as they cannot traverse unit grain trains through Chicago and because of this they have used the 2nd main track as a siding for these grain trains going back for up to 45 miles.
BNSF finally cut a deal for CSX to pick up oil unit trains in all places, Smithboro Illinois to try and bypass the madness.
NS has lines of empty oil trains lined from east of Chicago going back across Indiana.
If CP succeeds in buying out NS, then they can run these unit trains as far as Toledo, Ohio and pass them off to NS to finish the trip.
UPS is moving some traffic back to trucks in anticipation of a rail meltdown just before Christmas. The extreme cold last year before Christmas put UPS and FedEx Ground in a serious bind as deliveries were still being made on Christmas afternoon.
So while CP is sniffing under NS hood, between record oil shipments, a record grain harvest, and all of the UPS hotshots coming in from the western ports, there is going to be a lot of drama in railroads in the next 6 months.