Union Pacific Corporation and Norfolk Southern Corporation acknowledged two significant milestones in the creation of America’s first transcontinental railroad. The Surface Transportation Board (STB) has unanimously denied merger opponents’ requests to dismiss the companies’ revised merger application. With the rejection of these requests, the board can continue its review of the most comprehensive merger analysis ever submitted in support of a major rail transaction. The facts as evidenced in the application are clear: a seamless, coast-to-coast railroad will provide customers more efficient and affordable freight transportation options and remove more than 2 million truckloads from taxpayer-funded highways.
Additionally, the International Association of Sheet Metal, Air, Rail and Transportation’s Railroad Mechanical Department (SMART-MD) has entered a jobs-for-life agreement with the railroads, reflecting a shared commitment to protecting represented jobs and preserving work opportunities. With SMART-MD’s support, more unions representing Union Pacific and Norfolk Southern employees support the merger than oppose it.
As outlined in the application:
- Every employee with a union job when the merger is approved will continue to have one for life.
- Customers will gain access to a faster, less expensive cross-country railroad that eliminates time-consuming interchanges.
- All existing gateways will remain open.
- In addition to creating seven new premium intermodal lanes, the merger will convert 10,000 existing interline lanes to single-line service.
- Intermodal will be able to compete and win, removing trucks from congested streets and highways.
- Merchandise and bulk traffic will move faster with fewer handoffs and be less expensive for the entire movement, reducing inventory and asset costs.
- Competitors will have to up their game and compete at a higher level.
- The combined company will offer Committed Gateway Pricing, which will allow more customers to share in the merger’s benefits.
The transaction remains subject to STB review and approval and will continue to be subject to STB oversight following closing. The two companies expect the transaction to be completed in the second half of 2027
-via Press Release
