December 19, 2025 – New York – Union Pacific (UNP.N) and Norfolk Southern (NSC.N) have filed a nearly 7,000-page merger application with the U.S. Surface Transportation Board (STB), initiating a regulatory review of their $85 billion plan to create the nation’s first coast-to-coast freight railroad. The filing triggers a 30-day period during which regulators, stakeholders, and industry participants can request additional information or propose initial remedies.

If approved, the merger would fundamentally reshape U.S. freight transportation, leaving only two major competitors to challenge a transcontinental rail giant.

Regulatory and Industry Context

The STB review process allows shippers, labor unions, consumer advocates, and local officials to respond to the merger, providing comments on competition and public-interest considerations. Under the stricter framework adopted in 2001, railroads must demonstrate that a merger enhances competition and delivers clear public benefits.

Union Pacific CEO Jim Vena emphasized the strategic importance of the deal:

“If we stand still, we are going to get left behind. The benefits of this transaction are undeniable.”

The merger proposal received public support from President Donald Trump, aligning with his infrastructure vision to strengthen East-West rail connectivity and improve logistics efficiency.

Opposition from Competitors

The transaction has faced strong resistance from rival railroads, which warn it could reduce choices for shippers and drive up rates:

• BNSF Railway, owned by Warren Buffett’s Berkshire Hathaway, highlighted potential long-term competitive harms.
• Canadian Pacific Kansas City (CPKC) noted the merger’s “extraordinary and far-reaching risks” for customers.
• CSX is actively reviewing the application and preparing to participate in the STB process to protect its market position.

Analysts suggest that the merger could trigger further consolidation in the U.S. rail sector, as competitors may consider pairing up to remain competitive if market access or operational advantages are granted to UP–NS.

Strategic Rationale

Union Pacific and Norfolk Southern argue the merger will eliminate Chicago interchanges, reduce East-West handoffs, improve transit times, and strengthen rail’s competitive position against long-haul trucking.

The filing marks the first major railroad merger under the modern STB framework, making this a critical test of how consolidation can balance operational efficiency with competition and public interest.