A proposed merger between Union Pacific and Norfolk Southern could reshape the landscape of freight transportation in the United States. If sanctioned by the Surface Transportation Board (STB), the merger would create the first transcontinental railroad in the U.S., linking over 50,000 route miles across 43 states and approximately 100 ports.
Proponents of the merger argue that the new single-line service would lower shipping costs and reduce delays by minimizing handoffs between different rail lines. According to Danielle Zanzalari, an assistant professor of economics at Seton Hall University, the merger would not significantly hinder competition. “The RCC’s letter overstates the competitive risk,” she stated in an email to Supply Chain Dive. “Union Pacific and Norfolk Southern have very little network overlap, so the merger wouldn’t reduce options for shippers.”
Opposition to the merger is led by the Railroad Coalition for Competition (RCC), which highlights concerns over reduced competition due to fewer Class I railroads. The RCC warns that a merger of this magnitude could catalyze further consolidation, leaving shippers with limited options. “A transcontinental merger could spark a new wave of consolidation, leaving captive shippers with even fewer Class I rail companies and competitive joint line options to choose from,” the coalition stated, noting that the top-tier rail carriers currently control about 90% of all freight traffic.
The RCC’s concerns echo those raised by U.S. Senators Tammy Baldwin and Roger Marshall. In a letter to the STB, they emphasized that the number of Class I freight railroads has dwindled from over 100 in the 1950s to just six today. The senators expressed fears about the potential negative impacts of further consolidation, urging that care be taken not to undermine progress in U.S. manufacturing and supply chain security.
The STB is expected to receive the merger application from Union Pacific and Norfolk Southern on or before January 29, 2026. The two railroads, which formalized their merger agreement in July 2023, plan to finalize the transaction by 2027. As discussions continue, the potential implications of this merger remain a topic of significant interest among industry stakeholders and regulatory bodies.
