USA: The UP–NS merger filing now includes four new or expanded shipper protections, completing the railroads’ supplemental response as the federal regulator reviews the proposed $85 billion transaction.

UP-NS merger application moves into STB review
Union Pacific Railroad/Norfolk Southern Railway

Union Pacific and Norfolk Southern filed their second and final supplemental response on July 27, meeting a deadline imposed after the Surface Transportation Board accepted their revised application for consideration on May 28.

The STB had placed the proceeding, including its environmental review, in abeyance because parts of the application required more detail. The July 27 submission follows an initial response filed on July 7 and addresses competition, shipper access, service assurance, market shares, passenger rail and other issues.

Four protections expand remedies for freight customers

The largest numerical change concerns Committed Gateway Pricing. According to the 407-page supplemental filing, eligibility would almost double from approximately 133,890 to 257,971 carloads, based on 2024 traffic data. The expanded program would include bulk unit trains and qualifying traffic at competitively served BNSF and CSX origins and destinations.

A new Targeted Access Program would allow sole-served customers in terminal areas to seek expedited reciprocal switching if service deteriorates from pre-merger levels and falls below specified thresholds: 70% for Original ETA performance or 85% for Industry Spot & Pull performance. Switching ordered through expedited arbitration would remain in effect for six months.

The applicants also propose preserving Class I access for facilities where the number of available railroads would fall from two to one or from three to two. Access could be provided through trackage rights, haulage or another mutually acceptable arrangement.

The fourth commitment would establish a rate alternative dispute resolution program if the STB determines that expected public benefits are not being delivered on time. If triggered, it would provide expedited rate dispute resolution for regulated traffic. These measures are commitments proposed by the applicants, not findings or approvals by the regulator.

Don’t miss…DART Secures $25M for Eight Dallas Station Upgrades

CN agreement addresses terminal ownership questions

The railroads’ joint announcement also links the filing to Union Pacific’s binding agreement with CN. Subject to STB approval and completion of the merger, CN would acquire Norfolk Southern’s interests in the Terminal Railroad Association of St. Louis and Kansas City Terminal Railway.

The agreement would also give CN rights over Union Pacific’s line between St. Louis and Kansas City, including use of Neff Yard. The STB says it is reviewing the supplemental information and will issue a decision after that review. Union Pacific and Norfolk Southern continue to target mid-2027 for completion, but the transaction remains subject to regulatory approval.

News on railway transport, industry, and railway technologies from Railway Supply that you might have missed:

Don’t miss…MassDOT Opens $5.6M East Deerfield Transload Facility