Union Pacific and Norfolk Southern Affirm Strength of Merger Application and Offer Unprecedented New Customer Assurances

Union Pacific and Norfolk Southern have enhanced their merger application by offering customer protections that go beyond those provided in any prior rail merger. The new commitments are provided with the supplemental information requested by the Surface Transportation Board (STB) when it accepted the companies’ merger application as complete on May 28, 2026.

“We are more confident than ever that creating America’s first transcontinental railroad is good for America. The merger will provide our customers faster, more reliable and efficient coast-to-coast service from day one and create cost savings that will flow through to consumers,” said Union Pacific CEO Jim Vena. “We talk to our customers every day, and as we listened to them and reviewed the STB’s comments, we saw opportunities to provide additional assurances through an unprecedented set of voluntary commitments to our customers.”

The filing includes four new or expanded commitments:

  • New Competitive Opportunities. The combined railroad will significantly expand Committed Gateway Pricing (CGP), doubling the number of eligible shipments, and extending benefits to bulk unit train shippers. The expanded program is the functional equivalent of thousands of haulage agreements in a single enforceable commitment, creating even more opportunities for customers to benefit from the merger.
  • Expanded Customer Protections. The railroads will preserve Class I rail options for 3-to-2 shippers as well as 2-to-1 shippers, where they can legally grant access to another railroad. No prior rail merger has included a similarly broad commitment to preserve 3-to-2 access.
  • New Service Level Protections. In the unlikely event that service performance declines during merger integration, customers will be able to obtain temporary access to alternative rail service. This commitment provides an additional safeguard to help keep freight moving if unexpected service issues arise.
  • Stronger Oversight. If the merger’s public benefits are not being delivered in a timely manner, customers will gain access to a new rate relief process. Combined with the new integration period service protection, this new process provides added accountability to customers.

With today’s filing, Union Pacific and Norfolk Southern have completed their responses to the STB’s requests for supplemental information. In a previous filing on July 7, the companies reaffirmed they have no interest in controlling the jointly owned Terminal Railroad Association of St. Louis (TRRA), Kansas City Terminal Railway (KCT) or TTX Company and provided options for implementing that commitment. Union Pacific’s new binding agreement with CN directly resolves the TRRA and KCT ownership questions by transferring Norfolk Southern’s interests to CN.

As the Board continues its review of the merger application, Union Pacific and Norfolk Southern expect the transaction to be completed in mid-2027. For more information, visit AmericasGreatConnection.com.

-via Press Release

 

 

This article was posted on: July 28, 2026