Union Pacific–Norfolk Southern merger supporters say the newly filed application strengthens the case for a single, coast-to-coast railroad. Speaking with Trains, Union Pacific CEO Jim Vena said the 6,692-page filing lays out customer benefits and the potential of seamless, transcontinental service.

Union Pacific in $85B Norfolk talks with Trump
Union Pacific and Norfolk Southern logos are seen in this illustration taken August 5, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

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

Vena, who became Union Pacific CEO in August 2023, has kept a transcontinental merger on his list and has described a UP–Norfolk Southern tie-up as a win for customers, employees, the nation, and the economy. In his view, the data compiled in the application backs up that message.

He said he read the submission in full. What stood out, Vena explained, was “the strength of what’s possible for customers … with this combined railroad.” “It really popped out,” he said.

Union Pacific–Norfolk Southern merger projections by year three

Consultants hired by UP and NS to evaluate growth potential project that, within three years, the combined system could take 2 million trucks off the highway annually. Over the same period, the filing points to forecasts of 1.4 million new intermodal loads and 425,000 carloads moving onto the expanded Union Pacific.

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Vena said those projections came in above what the railroads expected earlier this year during merger talks. “When the experts looked at it … they showed us how it’s even better than what we thought,” he said.

Overall, the railroads project 11% growth by year three compared with the combined UP-NS traffic base year of 2023.

Why interline handoffs add cost for shippers?

The application also focuses on the costs created when freight must move between railroads. It says interline merchandise moves between 1,000 and 1,500 miles cost customers an average of 35% more than comparable shipments handled end-to-end by a single railroad.

Vena tied that difference to the handoff itself. “What people miss is those handoffs — those times that you move traffic from one railroad to the other — cost you time and money,” he said.

Opposition, BNSF’s STB request, and the STB review

Union Pacific and Norfolk Southern included roughly 2,000 letters of support with the merger application, including about 500 from customers. Even so, rival railroads are pushing back. BNSF Railway, Canadian National, and Canadian Pacific Kansas City oppose the deal, arguing it isn’t necessary, would harm rail competition, and could risk widespread integration-related service failures, as Railway Supply notes.

BNSF has also asked the Surface Transportation Board to review Union Pacific’s compliance with conditions tied to UP’s 1996 acquisition of Southern Pacific, as outlined in a BNSF news release.

BNSF argues that UP has sought to block its right to access customers once served by both UP and SP. If the STB were to take up that case, UP would be arguing that the UP-NS merger enhances competition while also defending itself against allegations of anticompetitive behavior related to its last major merger.

Vena said he finds it hard to believe the STB would reopen a deal decided nearly three decades ago. “It’s just not gonna happen,” he said, calling BNSF’s move a tactic: “The facts aren’t there.”

He added that complaints to the STB about competition commitments can be filed by any railroad and noted prior disputes, including one in which BNSF failed to persuade the board it should gain access to a pair of UP-served quarries. BNSF has asked the board to reconsider, citing additional information it dug up related to the quarries it wants to serve in Texas and Arkansas.

Vena said Union Pacific and BNSF generally work well together, including operating railroads and terminals side by side, even if they sometimes disagree on specific agreements. He also said he expected other Class I railroads to oppose the UP-NS combination, arguing rivals will have to drop their rates to compete. “I feel sorry for them — and not,” he said.

Other railroads are free to pursue their own mergers, Vena said, pointing to BNSF owner Berkshire Hathaway and its cash stockpile of around $350 billion. However, Berkshire Hathaway Chairman Warren Buffett has said the company is not interested in a rail merger.

The Surface Transportation Board is reviewing the UP–Norfolk Southern proposal to ensure it meets regulatory requirements. Once the application is accepted, the STB will evaluate the $85 billion deal under tougher rules adopted in 2001 that require mergers to enhance competition and serve the public interest, as outlined in a Surface Transportation Board announcement.

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