Union Pacific, Norfolk Southern seek approval for transcontinental rail merger as CPKC raises concerns

Union Pacific Corp. and Norfolk Southern Corp. have filed an application with the U.S. Surface Transportation Board seeking approval to merge and create what the companies describe as America’s first transcontinental railroad.

The companies said the proposed combination, announced in July, would connect their end-to-end networks across 43 states and more than 100 ports, converting thousands of interline routes into single-line service and shifting an estimated two million truckloads of freight from road to rail each year.

“We look forward to working with the Surface Transportation Board as it reviews our historic application to create America’s first transcontinental railroad,” Union Pacific CEO Jim Vena said. “As time and technology continue to transform how freight is delivered, our industry must keep pace and move forward, reaching underserved markets with new rail solutions and strengthening the U.S. supply chain. Customers deserve stronger, more connected freight rail, and our merger will make that happen.”

Norfolk Southern President and CEO Mark George said the deal “will create a cohesive freight rail solution with 50,000 route miles that connect 43 states and more than 100 ports.”

The companies say the merger would protect all existing union jobs, create about 900 net new union positions within three years, reduce emissions by diverting freight from trucks to rail and support passenger rail services. The transaction remains subject to STB review and approval, with the companies targeting completion by early 2027.

Canadian Pacific Kansas City said it is reviewing the nearly 7,000-page application and questioned whether the proposal meets the public interest test.

“Approval of this merger is not inevitable,” the company said in a statement, adding that the proposed combination “would radically and permanently change the U.S. rail network” and could pose “extraordinary and far-reaching risks to customers, rail employees and broader supply chains.”

CPKC said it will participate actively in the STB process and encouraged shippers, governments and other stakeholders to submit comments.