Rail Giants Push Merger to Create First US Transcontinental Line
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Union Pacific Corporation announced a new partnership with Norfolk Southern Corporation on Friday, December 19. According to the firm’s press release, the two have filed an application with the Surface Transportation Board (STB) requesting approval to combine the two railroads.
The two firms entered into a merger agreement on July 29, 2025, seeking to create America’s first transcontinental railroad. Their application is nearly 7,000 pages long, and it provides in-depth and compelling new details on how the end-to-end combination will enhance competition and deliver broad public benefits.
According to the announcement, the application also includes a record-breaking 2,000 letters of support from stakeholders, joining shareholders at both companies who cast votes that were 99% in favor of the merger.
The Move Would Bring Benefits For Everyone, Union Pacific Argues
Explaining the benefits of the move, Union Pacific said that the first transcontinental railroad would connect the US from coast to coast, thus transforming 10,000 existing lanes from interline service into faster, more efficient single-line service and eliminating time-consuming handoffs between railroads.
It would move freight more efficiently, retain competitive shipping alternatives, compete more effectively with long-haul trucking, protect all union jobs, enhance competition, keep open all existing gateways for eligible traffic, provide customers with a unified digital experience, and invest an estimated $2.1 billion of incremental capital to support revenue and cost synergies.
Union Pacific’s CEO, Jim Vena, commented on the move, saying: “We look forward to working with the Surface Transportation Board as it reviews our historic application to create America’s first transcontinental railroad.”
Vena further explained that time and technology are continuing to transform the way freight is delivered. As this continues, the industry needs to keep pace and move forward, reaching underserved markets with new rail solutions and strengthening the US supply chain.
“Customers deserve stronger, more connected freight rail, and our merger will make that happen,” Vena concluded.
Meanwhile, Norfolk Southern’s President and CEO, Mark George, explained that this combination will bring together Union Pacific’s expansive Western reach and Norfolk Southern’s unparalleled access to Eastern manufacturing and population centers in an end-to-end combination.
“It will create a cohesive freight rail solution with 50,000 route miles that connect 43 states and more than 100 ports,” he explained.
Union Pacific explained the benefits for both America and customers in detail, insisting that safety remains the No.1 priority. “A safety integration plan was created working with the Federal Railroad Administration (FRA) and submitted to the STB. The plan outlines how the new company will combine best practices from each railroad to further enhance the safety benefits for all,” the announcement said.
