Dive Brief:
- Union Pacific and Norfolk Southern submitted an amended merger application as the railroads seek approval from the Surface Transportation Board, according to a Thursday press release.
- The latest application includes traffic data from six North American Class I railroads to support the claim that the merger will drive growth, enable cost savings for shippers and strengthen supply chains, per the release.
- While the proposed merger is still subject to STB approval, the two railroads expect the transaction to be completed in the first half of 2027.
Dive Insight:
The potential merger of Union Pacific and Norfolk Southern has faced several hurdles, as the two are still working toward approval from the STB.
Earlier this year, the agency rejected the application UP and NS initially filed on Dec. 19, 2025, citing the submission as incomplete because it missed “certain information required” by the board. Stakeholders can submit comments on the completeness of the revised application until May 8, the STB announced. The board will seek comments on the merit of the merger at a later date if the revised application is accepted.
The two railroads entered into a network merger agreement in July 2025 in a bid to create the “first transcontinental railroad” in the U.S. The planned combined network would connect more than 50,000 route miles across 43 states.
Union Pacific and Norfolk Southern say the merger would make rail more competitive by taking about 2.1 million trucks off the road, shifting freight from high-cost trucks to low-cost rail, per the Thursday press release. The railroads further noted that shippers will save an estimated $3.5 billion and remove interchange handoffs that can add 24 to 48 hours in transit time and extra costs to the supply chain.
“Our projections show the combined railroad will move about the same number of ton‑miles as our Western competitor does today, underscoring how this merger will enhance competition in the marketplace,” Union Pacific CEO Jim Vena said in the release.
However, the proposed merger has faced much backlash from industry stakeholders, who have flagged concerns such as increased risk for higher rates and stifled rail competition.
Several railroad operators and stakeholders, including BNSF Railway, Canadian Pacific Kansas City, the Alliance for Chemical Distribution and the Teamsters Rail Conference, have also joined a coalition “urging the administration to hit the brakes on this unnecessary merger,” per an April 29 press release.
“It is a gamble with the nation's supply chain and the workers who keep it moving that ultimately the American taxpayer will have to bail out,” Teamsters Rail Conference President Mark Wallace said in the release.
