South Carolina governor backs UP-NS deal, says STB must review every aspect

South Carolina Gov. Henry McMaster backed the proposed Union Pacific-Norfolk Southern merger in a September 9 letter to the Surface Transportation Board, while saying the Board must weigh every aspect.

The letter is addressed to STB Chairman Patrick J. Fuchs. Union Pacific and Norfolk Southern published it alongside a joint release on September 15, 2026.

McMaster’s case for rail in South Carolina

McMaster writes that South Carolina has attracted investment over recent decades partly because of transport networks that allow businesses to compete. As the state grows, he argues, reliable transport options matter for moving raw materials and finished goods, easing congestion, improving safety and protecting the environment. A larger role for rail, in his view, can serve all of those aims.

In the final paragraph, McMaster writes:

“While the Surface Transportation Board must carefully evaluate every aspect of this transaction, I believe the proposed combination of Union Pacific and Norfolk Southern presents meaningful opportunities to reinforce South Carolina’s position as a national leader in commerce and trade.”

What the companies’ release left out

The companies’ release quoted that sentence without its opening clause about the Board’s review. It also left out a paragraph in which the governor describes Brosnan Forest, a property owned and managed by Norfolk Southern, as an example of conservation and responsible land management, and says he is encouraged by the commitment to keep maintaining and using it.

The letter itself contains no figures and states no conditions for McMaster’s support. In the release, Norfolk Southern President and CEO Mark George said the combination would give businesses single-line access to more destinations and estimated that it would shift 2.1 million truckloads off highways. According to the companies, the governor’s letter joins about 2,000 letters of support they have received, more than 700 of them from commercial partners, and around 40 state and local leaders in South Carolina have backed a transcontinental network.

Where the STB review stands

The Board is reviewing the deal, which the companies say implies a total enterprise value of $85 billion for Norfolk Southern, in Docket FD 36873. On August 18, 2026, it adopted a procedural schedule, saying its decision to resume the review reflected no view on the merits. Comments, protests, requests for conditions and responsive applications are due by November 18, 2026, and final briefs by May 28, 2027. No date has been set for a public hearing. The Board intends to issue its final decision within 90 days after the record closes, provided the environmental review is complete.

Dates as set by the Board in its August 18 procedural schedule and its August 31 extension. The hearing and record-close dates will be fixed in later decisions.

Earlier rulings and pending motions in Docket FD 36873

The Board rejected the companies’ first application, filed on December 19, 2025, as incomplete on January 16, 2026. It accepted a revised application for consideration on May 28 but held the proceeding in abeyance until Union Pacific and Norfolk Southern filed supplemental information in July. The August 18 decision also lists motions for summary denial of the revised application from CSX Transportation, BNSF and five industry associations, including the American Chemistry Council and The Fertilizer Institute, as well as a joint letter from the attorneys general of Montana, Iowa, Florida, North Dakota, South Dakota, Tennessee and Kansas. The Board said it would address those motions separately. On August 31, it extended the deadline for notices of intent to participate in the proceeding to September 30, 2026.