OMAHA, Neb. — Union Pacific and Norfolk Southern could announce a tentative merger agreement as early as this week, according to a published report.
Bloomberg cited sources familiar with the talks in its report on Friday.
UP, the largest Class I railroad, and Atlanta-based NS confirmed last week that they are in advance discussions regarding a merger that would create the first U.S. transcontinental railroad. The proposed consolidation would produce a rail colossus valued at almost $200 billion, with some $36 billion in annual revenue based on 2024 earnings.
Union Pacific had no comment. Norfolk Southern did not immediately respond to a message from FreightWaves seeking comment.
It’s also likely that competitors such as BNSF Railway, Canadian National, and Canadian Pacific Kansas City would importune the Surface Transportation Board for concessions to balance potential competitive issues. The STB will ultimately accept or reject the deal. Industry observers have said that CN, in particular, could seek access to Mexico, after the 2023 Canadian Pacific-Kansas City Southern merger created the first single-line carrier serving Canada, the U.S., and Mexico.
The STB last week published a timeline estimating the review process could take up to 22 months once formal filings are submitted [see “STB creates merger resources page …,” Trains News Wire, July 25, 2025].
— A version of this article previously appeared at FreightWaves.com. Updated at 3:55 p.m. CT to correct annual revenue figure.
Mr. Spindler – All good points!
Not really a surprise, railroads have wanted a true transcontinental railroad for years. Look at trucking companies, load it at one location and it goes right thru to its destination. Sorry folks but the day of looking forward to seeing all those different RR companies has long passed. As much as we miss those days we must remember that RR’s did not run for our entertainment, they are a business and should be allowed to strengthen their business like their rivals.
Which yards/terminals will UPNS close? NS and UP each have three intermodal terminals in the Chicago area, for example. Global 2 and 4, Dolton, Calumet, 47th, and 63rd.
Not a chance in the world Global 2 or 4 would be closed.
Any other intermodal yard closing is just a guess.
Maybe they will reopen the Kankakee bypass and bridge over the Illinois river at Depue, IL
Gregory: What purpose would a bridge at Depue, IL serve?
@ Greg Gehin: I got bad news for you. Conrail tore out the bridge at Depue, Illinois months after the MILW shut down. MILW was the only one using it under trackage rights. The US Coast Guard requested it demolished as it had become a danger to river navigation in 1984.
NS still runs the route from Marquis Energy in Hennepin back to Kankakee and run a weekly local.
Industry concentration does not enhance competition or serve the public interest. Monopoly pricing yields zero or negative growth and 40% margins. Customers, the public and environment pay the price.
Gregg – Besides the others listed why would the environment pay a price? There’s absolutely no way to know that until the STB makes its final call.
And you know some big Union Pacific intermodal shippers will likely support the merger, Hub Group in particular. Possibly Schneider too.
Allen, as reported by Bill Stephens rail has been in a zero growth mode for 2 decades, while trucking is up 30% (and it just ain’t coal). As we all know rail is 3-4 times more efficient per ton mile than trucking. Further, the abandoning of hundreds of intermodal service lanes increases drayage significantly. Promising business like RoadRailer were killed because 10% margins wasn’t enough.
Thus the environment suffers.
Looks like it’s finally coming true…
Dr. Güntürk Üstün
Something for the railfan: See big boy run east of Roanoke up the Blue Ridge grade and/or around horseshoe curve.
Perhaps even wilder speculation–does UPNS reawaken 1218? Does 611 see the mainline again?? Will a 4014/3985 double header occur? How about 844/611 as a DH to celebrate the merger should it happen? OK, I did say wild.
It should not surprise anyone if the take overs of both NS and CSX are approved and implemented by Jan 1 2027. That date because of possibility of changes in congress by that date. If not then maybe Jan 20, 2029. We are seeing absolutely no restrictions of mergers and acquisitions.
Great word – “importune.” To pester, or annoy.