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Two of North America’s largest freight rail operators, Union Pacific and Norfolk Southern, have announced a groundbreaking merger plan that, if approved by federal regulators, would create the first coast-to-coast freight railroad in U.S. history.
This potential $85 billion acquisition by Union Pacific—currently the nation’s largest freight rail company—would combine forces with Norfolk Southern, the fourth-largest, to form a unified system stretching from the Atlantic to the Pacific.
What’s at Stake?
According to industry expert Tony Hatch, this merger is unprecedented in the nearly 200-year history of U.S. railroads.
It would seamlessly connect major urban hubs like New York, Los Angeles, Dallas, Atlanta, Boston, and Denver, dramatically reshaping the nation’s logistics infrastructure.
“This is the first time an American railroad could operate coast-to-coast,” Hatch explained, highlighting the strategic advantage of linking eastern and western freight corridors under one network.
Potential Benefits: Efficiency, Not Cheaper Goods (Yet)
While consumers might hope for lower prices, the railroads involved emphasize that the real benefits would come from enhanced efficiency.
By eliminating the need for mid-route carrier changes—a common bottleneck in rail freight today—the merger could save days on cross-country shipments.
Bill Vantuono, editor of Railway Age, noted that these delays often deter companies from using rail. Some rate requests currently take two to three weeks, prompting customers to opt for trucking instead.
A transcontinental freight system could eliminate those inefficiencies and make rail shipping more competitive in the long term.
What’s Holding It Back? Regulatory Hurdles
Despite the merger’s promise, U.S. railroads are subject to strict federal regulation to avoid monopolistic practices—a legacy of abuses from the 1800s.
The Surface Transportation Board (STB), which oversees such deals, had previously required that mergers actively increase rail competition. However, recent policy changes allow the STB to evaluate overall impact on the transportation ecosystem, including trucking and barge industries.
With a new Trump-appointed STB member expected soon, the regulatory climate may become more favorable.
Still, approval could take at least two years, with further delays possible as labor unions and major freight customers review the proposal.
The Domino Effect: More Mergers Ahead?
This high-profile merger might not be the last. Analysts suggest that if Union Pacific and Norfolk Southern combine, rivals like BNSF (serving the West) and CSX (serving the East) may also pursue consolidation to remain competitive.
If approved, the Union Pacific–Norfolk Southern merger would establish the first-ever transcontinental freight railroad in the U.S., potentially revolutionizing the shipping landscape.
While cost savings for consumers remain uncertain, improved logistics, faster delivery times, and more competitive rail options could make a significant impact on the national supply chain.