USA: Union Pacific and Norfolk Southern have expanded customer safeguards in their proposed merger, doubling annual shipments eligible for committed gateway pricing from about 134,000 to 258,000.

Two black Norfolk Southern diesel locomotives standing on adjacent tracks
Two Norfolk Southern locomotives; illustrative image that does not depict the current merger filing or integration. Photo: Jud McCranie / Wikimedia Commons / CC BY-SA 4.0

The railroads submitted the new commitments on July 27 as part of their final supplemental response to questions from the Surface Transportation Board. The package addresses competitive access, service performance and rate oversight, but it does not constitute regulatory approval of the transaction.

Gateway pricing reaches bulk unit trains

Committed Gateway Pricing eligibility will rise from approximately 134,000 to 258,000 shipments per year. The expanded commitment will also cover agricultural and other bulk unit-train customers for the first time, according to a Union Pacific customer update.

The companies describe the measure as the functional equivalent of thousands of individual haulage agreements consolidated into one enforceable commitment. A gateway is an interchange point where freight can move between railroad networks; the program is designed to preserve a defined competitive routing option at eligible locations.

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Alternative access if service or competition declines

The proposal would preserve access to another Class I railroad for affected 2-to-1 and 3-to-2 shippers where the companies can legally grant it. These terms refer to facilities whose available Class I options would fall from two carriers to one, or from three to two, following the merger.

Customers could also receive temporary access to alternative rail service if performance declines during integration. A separate rate-relief process would be available if the merger’s stated public benefits are not delivered promptly.

Regulatory approval remains pending

The Surface Transportation Board accepted the revised application for consideration on May 28, 2026, while placing the proceeding and environmental review in abeyance pending supplemental information and the Board’s assessment of it. The July 27 filing completed the applicants’ responses to that request.

Union Pacific and Norfolk Southern also reiterated that they do not seek control of the Terminal Railroad Association of St. Louis, Kansas City Terminal Railway or TTX. A binding agreement with CN would transfer Norfolk Southern’s interests in the first two terminal companies to CN.

The railroads expect the proposed merger to close in mid-2027, subject to the continuing regulatory review and required approvals.

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