UP-NS merger draws strong opposition from rivals
03.11.2025
The proposed UP&NS merger has faced stiff opposition from CPKC, CN, as well as BNSF, as they feel that this proposed move will lead to a reshaping of U.S. freight logistics.
This is reported by the railway transport news portal Railway Supply.
Rail leaders unite against UP-NS merger
Canadian Pacific Kansas City and Canadian National have followed BNSF Railway in rejecting a takeover offer of Norfolk Southern by Union Pacific Railroad. This move comes as the agreement of approximately $85 billion is pending approval before submission to Surface Transportation Board.
Don’t miss…Via Rail Canada Brings Back Canada Strong Pass With Free Winter Trips
CPKC and CN contend that the proposed merger will result in an oversized freight railway with a collective 40% of the U.S. rail traffic volume. They anticipate this might weaken the railways’ bargaining power as customers and lead to increased costs of transportation. CPKC claimed that a collaboration between the Class I railways is a more sustainable solution to efficiency rather than a merger.
CN stated that the UP-NS merger will “impact competition in service quality,” that is, that a lack of competition will lead to a lack of service quality. It encouraged customers to participate in STB proceedings by pointing out that having “several competing routes” is essential to a resilient “service chain.”
BNSF outlines concerns over UP-NS merger
BNSF Railway is the first to publish a response critical of the proposed merger. The firm called this proposed union unnecessary, as it is more driven by shareholder returns than the needs of shipper customers. They encouraged stakeholders to submit objections to the STB once the federal government shutdown is over.
A filing of the proposed merger is expected by Union Pacific and Norfolk Southern this fall. It is expected that if approved, this move will spark another wave of consolidations in the rail industry in North America.
As long as balance in the marketplace and shipper choice are important to a well-functioning freight market, BNSF, CPKC, and CN agree that maintaining open competition is a necessity. This is particularly true in regards to smaller joint ventures that could coordinate activity in a beneficial way.
Source: www.progressiverailroading.com
News on railway transport, industry, and railway technologies from Railway Supply that you might have missed:
What is the UP-NS merger?
It is a proposed $85 billion acquisition in which Union Pacific Railroad aims to merge with Norfolk Southern, pending STB approval.
Why are other railroads opposing the UP-NS merger?
BNSF, CPKC, and CN believe it will reduce competition, raise shipping costs, and give the merged carrier disproportionate control over national freight flows.
How could the UP-NS merger impact customers?
Industry experts warn it could limit route options and weaken negotiating power for shippers, though proponents claim it might streamline operations.
Place your ads on webportal and in Railway Supply magazine. Detailed information is in Railway Supply media kit
