Dive Brief:
- The Surface Transportation Board rejected several motions calling for the agency to deny Union Pacific and Norfolk Southern’s merger application before a formal review begins, according to a Sept. 18 press release.
- On Aug. 18, several rail carriers and shipper-led groups filed motions for a summary of denial of the revised application for failure to present a prima facie case, according to a docket filing from the agency. A prima facie case aims to show that there is enough evidence to support a claim, per Cornell Law School.
- CSX Transportation and BNSF Railway were among the carriers that filed a motion. Shipper associations, including the American Chemistry Council, the American Fuel & Petrochemical Manufacturers and the Alliance for Chemical Distribution and others filed a joint motion.
Dive Insight:
The proposed Union Pacific and Norfolk Southern merger continues to face opposition from several railroads and shipper groups for its potential to shift market dynamics.
In June 2025, UP and NS entered into an agreement to merge to connect more than 50,000 route miles across 43 states, provide access to 10 international interchanges and link with roughly 100 ports.
Since then, a debate has raged over whether the merger could negatively impact competition in the rail market. For instance, several senators warned the STB there could be pressure on rates and service and that four of a total six rail carriers already control more than 90% of U.S. freight.
“We will continue to stress to the STB that a healthy freight rail network depends on competition and customer choice, not increased market concentration and monopoly power,” the American Chemistry Council said in a statement.
Although the denial for the latest motion could be seen as a win for UP and NS, STB board member Richard Kloster said there’s been a lack of transparency and depth in the application.
“Applicants have submitted thousands of pages of documents, yet they do not offer a very robust plan for how they will address competitive concerns or mitigate potential harms. They also rely heavily on the benefits to intermodal shipments, a market segment which, by today’s standards, is already competitive,” Kloster said in the docket filing.
The STB had previously rejected the network merger proposal filed on Dec. 19, 2025, citing it as incomplete because it missed certain required information under board regulations. The two rail giants submitted a revised application in April, which the agency later accepted in May.
The latest decision by the STB does not determine the merits of the proposed merger nor does it act as an endorsement, the agency said in the release. It also doesn’t prevent parties from renewing any arguments.
Commenters can renew arguments on the merits of the proposed merger, which are due by Nov. 18, with responses to comments due by Feb. 16, 2027.
