Union Pacific and Norfolk Southern Pursue Historic Merger

Union Pacific (UP) and Norfolk Southern (NS) have formally submitted a merger application to the U.S. Surface Transportation Board (STB) on December 19, 2025. This proposed merger aims to create the first transcontinental freight railway in the United States, connecting the eastern and western regions. The application spans approximately 6,700 pages and includes 2,000 letters of support from various stakeholders, with both companies reporting a 99% approval rate from their shareholders.

Union Pacific and Norfolk Southern file merger applicationUP and NS file merger applicationDaily HeraldUP-NS Merger Application Filed: What it Means for BNSF CustomersUnion Pacific Team Proves What’s Possible, Files Historic Merger Application

The merger is positioned as a means to enhance service efficiency and reduce supply chain costs. UP and NS claim that the integration will eliminate approximately 2,400 wagon and container handlings daily, facilitating a shift of an estimated 2 million truckloads from highways to rail each year. UP CEO Jim Vena emphasized that the merger would allow the companies to better serve underserved markets and strengthen the U.S. supply chain, stating, “Customers deserve stronger, more connected freight rail, and our merger will make that happen.”

UP and NS file merger application

Despite the optimistic projections from UP and NS, significant opposition has emerged from rival freight carriers, including BNSF, Canadian National (CN), Canadian Pacific Kansas City (CPKC), and CSX. These competitors argue that the merger application is incomplete and fails to demonstrate how it would benefit the public interest. BNSF President Katie Farmer stated that the merger poses a significant threat to the U.S. economy, potentially leading to higher shipping rates and reduced competition. Critics also highlight that the combined volumes of UP and NS have declined by 13% over the past decade, questioning the feasibility of UP's promise of a 12% volume growth within three years.

Daily Herald

The STB is expected to determine the completeness of the merger application by January 20, 2026. If accepted, a formal review process will commence, with the potential for the merger to be finalized by early 2027. The STB has recently strengthened its merger rules, requiring applicants to prove that their proposals will enhance competition and serve the public interest.

Union Pacific and Norfolk Southern file merger application

Opponents of the merger have raised concerns about the potential for service disruptions, citing past merger integrations that led to significant operational challenges. The Rail Customer Coalition, representing shippers responsible for over half of all rail volume, has expressed that the merger could create near-monopoly power, raising costs for various sectors, including agriculture and manufacturing.

UP-NS Merger Application Filed: What it Means for BNSF Customers

• “This combination will bring together Union Pacific’s expansive western reach and Norfolk Southern’s unparalleled access to eastern manufacturing and population centres in an end-to-end combination,” — Mark George, President & CEO, Norfolk Southern

UP and NS file merger application

• “Responses Commenting on the application, BNSF President & CEO Katie Farmer said ‘what we have seen so far does not change BNSF’s opposition to the proposed merger.” — Katie Farmer, President & CEO, BNSF

Union Pacific and Norfolk Southern file merger application

• “Integration Risks: Every major rail merger has caused service disruptions.” — BNSF Attorneys

UP-NS Merger Application Filed: What it Means for BNSF Customers

The outcome of this merger application will significantly impact the U.S. freight rail landscape, with stakeholders closely monitoring the developments as the STB reviews the proposal.

UP-NS Merger Application Filed: What it Means for BNSF Customers