Union Pacific–Norfolk Southern merger heads to STB review

Union Pacific–Norfolk Southern merger plans are now formally before the Surface Transportation Board (STB), a step also covered by Railway Supply.

Union Pacific Corporation (NYSE: UNP) and Norfolk Southern Corporation (NYSE: NSC) are asking regulators to approve the proposed combination, which they say follows a merger agreement signed on July 29, 2025.

This is reported by the railway transport news portal Railway Supply.

The companies describe their STB merger application as nearly 7,000 pages and say it sets out how an end-to-end network would sharpen competition and deliver public benefits. They also state the record includes 2,000 letters of support from stakeholders, and that shareholder votes at both railroads were reported as 99% in favor of the merger.

Union Pacific–Norfolk Southern merger: what’s in the STB filing

In the filing, the railroads argue that a coast-to-coast system would shift 10,000 existing freight lanes from interline service to single-line service, cutting down on handoffs between carriers. They estimate that would remove about 2,400 rail car and container handlings per day and reduce 60,000 car-miles each day by moving freight more directly.

They also address competitive access for shippers. Union Pacific and Norfolk Southern say competitive shipping alternatives would be retained for three customer locations out of more than 20,000 served by the two railroads but no other carrier.

The application also stresses competition with long-haul trucking. The companies estimate a transcontinental railroad could move about 2 million truckloads of freight a year from road to rail, which they say would ease congestion, improve safety, and reduce wear on taxpayer-funded roads.

Competition claims, gateways, and Committed Gateway Pricing

Union Pacific and Norfolk Southern characterize the deal as a classic end-to-end merger, noting each railroad largely serves a different region today. By linking the networks, they say freight could bypass congested interchanges and move across major corridors on faster, more efficient, price-competitive routes.

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To reach customers who may not directly benefit from the merger, the railroads propose a voluntary program called Committed Gateway Pricing. They describe it as a way to streamline pricing of interline moves for thousands of customer locations, and they add they will keep open all existing gateways for eligible traffic on commercially reasonable terms.

As an added customer protection, Union Pacific says it would voluntarily create an alternative dispute resolution program to address certain claims tied to merger-related service issues.

The companies also point to a unified digital experience for shippers. They say customers would be able to integrate scheduling, tracking, and shipment visibility, and would deal with one commercial team, one contract, one invoice, and one accountable partner for the full rail journey. The railroads add that as new single-line routes open up and service is streamlined, short lines are positioned to capture new volumes flowing directly onto their rails.

Service plans, jobs pledge, and safety metrics

Union Pacific and Norfolk Southern say their operating plan would expand service without rebuilding existing networks. They outline two new daily intermodal train pairs linking East and West more directly, with estimated transit time reductions of up to 20 hours from Southern California to the Ohio Valley and Northeast, and more than two days from Southern California to the Southeast.

They also call for six new manifest trains intended to bridge East and West more efficiently, cutting more than 600 daily car handlings. To support expected intermodal growth, the companies say the combined railroad would introduce a total of six premium intermodal lanes operating seven days a week.

Beyond current flows, the railroads say the combined network would create 84,000 additional county-to-county lanes where freight now moves by road but could, for the first time, move by single-line rail service. They also argue more predictable service would help customers who own rail cars turn equipment faster, reduce idle time, and lower equipment costs.

On labor, the companies say every employee with a union job at the time of the merger will continue to have one. They expect about 900 net new union jobs by the third year following the merger to handle projected volume growth, and say any merger-related union job efficiencies would be achieved solely through attrition.

The release also states that average compensation including benefits is $160,000, roughly 40% above the national industrial average, and notes that Union Pacific has formalized jobs-for-life agreements with multiple unions.

Safety is described as the top priority, with the companies saying a safety integration plan was created working with the Federal Railroad Administration (FRA) and submitted to the STB. As examples, they compare the first three quarters of 2023 with the same period in 2025, stating Union Pacific improved its personal injury rate by 41% and now leads the industry in employee safety. The release also points to Norfolk Southern’s advanced technologies and industry-leading rail safety practices, saying they helped improve its Federal Railroad Administration (FRA) accident rate by 45% over the same period.

Public benefits: roads, emissions, ports, and passenger rail support

Alongside competition, the companies present the deal as a package of public benefits. They argue that shifting freight from highways to rail would reduce congestion and roadway wear, and they also cite what they call an economic boost for America’s heartland tied to improving service in the Watershed region.

In that section, they describe removing an “artificial barrier” between East and West rail systems and say the Watershed region has been underserved, with trucking often the default because rail moves across the divide were expensive and complicated due to handoffs between railroads. Citing industry advisor Oliver Wyman, the railroads say 105,000 carloads of merchandise traffic would convert from road to rail when single-line service becomes available to the Watershed markets.

They also state the combined network would offer single-line access to more than 100 ports and 10 international gateways connecting to markets in Canada and Mexico. On sustainability, the release cites the Association of American Railroads in stating rail produces roughly 75% less carbon emissions than trucks.

Union Pacific and Norfolk Southern say the merger would further reduce emissions by removing more trucks from the road, running trains more efficiently, investing in cleaner and more efficient technologies, and providing customers with tools to meet their sustainability goals. They also say they will maintain dedicated systems to support passenger rail, and that a route-by-route analysis of projected volume growth verified sufficient capacity to continue meeting service obligations to Amtrak and commuter rail agencies.

Process, timeline, and access to the application

The companies describe the transaction as thoroughly planned, pointing to state-of-the-art transportation systems and an estimated $2.1 billion of incremental capital investment to integrate the two railroads. They also expect $133 million in annual capital synergies by leveraging the combined network and fleet more efficiently.

The deal remains subject to STB review and approval within its statutory timeline and would be subject to continuing STB oversight post-closure. The companies say their application is available for public review via the Surface Transportation Board’s UP-NS Merger Resources.

In leadership comments, Union Pacific CEO Jim Vena said the industry must keep pace as time and technology reshape freight delivery, and argued the merger would strengthen the U.S. supply chain while reaching underserved markets with new rail solutions.

Norfolk Southern President and CEO Mark George said the combination would link Union Pacific’s Western reach with Norfolk Southern’s access to Eastern manufacturing and population centers, creating a network of 50,000 route miles connecting 43 states and more than 100 ports.

The companies say they expect the transaction to close by early 2027 and refer readers to AmericasGreatConnection.com for more information.

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