With its rear end still on the International Railway Bridge in Laredo, Texas, a Kansas City Southern empty grain train rolls by the Union Pacific depot and yard in November 2017. UP is concerned about how a Canadian Pacific or Canadian National acquisition of KCS could affect its cross-border traffic at the Laredo gateway. (Bill Stephens) OMAHA, Neb. — Union Pacific is closely watching the battle for Kansas City Southern and how an acquisition by either Canadian Pacific or Canadian National could affect its cross-border traffic. UP CEO Lance Fritz notes that U.S. regulations require that mergers between Class I railroads must enhance competition and improve service for all shippers. "For that to be true in any transaction, our current service product has to remain intact," Fritz told investors and analysts on the railroad's earnings call on Thursday.