Rail megamerger friends, foes already checking in with the STB
10/9/2025
By Julie Sneider, Senior Editor
In just over two months since Union Pacific Railroad announced its intention to buy Norfolk Southern Railway in an $85 billion deal that would create the first U.S. transcontinental railroad, over two dozen organizations and individuals have informed the Surface Transportation Board of their support of or opposition to the merger, or their intention to participate in the board’s proceedings.
UP CEO Jim Vena and NS President and CEO Mark George in late July signed the agreement calling for UP’s acquisition of NS.Union Pacific Railroad/Norfolk Southern RailwayOn July 31, UP and NS informed the STB of their intent to file an application for the board’s review of their merger plan. Ultimately, the board will have to decide whether merging two of the nation’s largest freight railroads would benefit the public and enhance economic competition — concepts not explicitly defined under federal regulations that guide the STB on such matters.
Prior to the federal government shutdown that started Oct. 1, the STB encouraged the public, stakeholders and potential stakeholders to weigh in on its proposed schedule for reviewing the application once it’s filed, which reportedly is likely to happen between Oct. 29 and late January 2026. [Editor’s note: The STB’s office remains closed until federal funding of its operations is restored.]
But many entities and individuals began weighing in with the STB just days after the proposed merger was announced. For example, those expressing a favorable view include Springfield, Illinois Mayor Misty Buscher, who wrote in her letter to the regulator that a combined UP-NS would be a boon to the local economy by providing more dependable rail service, expanding market access for local businesses and encouraging investment in rail infrastructure.
Letter writers concerned about the merger include U.S. Sens. Tammy Baldwin (D-Wis.) and Roger Marshall (R-Kan.), who said the magnitude of the merger and subsequent consolidation of the freight-rail carriers would further diminish shippers’ options. Since the 1950s, the rail industry has consolidated from over 100 railroads to just six today, with four of those carriers providing nearly 90 percent of the nation’s freight-rail transportation, the senators noted.
Also, the Rail Customer Coalition — representing manufacturing, agriculture, energy and other industries — wrote to outline its reservations.
“At a time when policymakers are working to strengthen American manufacturing, secure supply chains and fight inflation, we must be careful not to allow further consolidation in a critical transportation sector to undo that progress,” the coalition’s letter states. “Enhanced freight-rail competition is essential for producing more goods in America, growing rail volumes and maintaining our leadership in global trade.”
Although many comments have been registered with the STB, others are being aired publicly via press releases, websites, social media postings and comments to the media. Among those who’ve express their views is President Trump, who welcomed UP CEO Jim Vena at the White House for a chat in September and later indicated his support for the merger while answering a reporter’s question.
Critics turning up the volume
At the same time, UP-NS competitor BNSF Railway has grown increasingly vocal about how it believes a UP-NS combination would be a detriment to the U.S. economy.
"No customer is asking for a UP-NS merger to happen,” BNSF officials wrote in a white paper posted last month on the company’s website. “It’s driven by Wall Street on the promise of a big shareholder payout. BNSF does not believe a merger is necessary at this time, when we can deliver immediate benefits to our customers while preserving competition."
Moreover, BNSF Executive Vice President and Chief Marketing Officer Tom Williams has asked his railroad’s customers to let the STB know how a merged UP-NS network would impact their companies and create the potential for service disruptions.
In September, UP CEO Jim Vena [left] met President Donald Trump in the Oval Office.Union Pacific Railroad/Norfolk Southern Railway“Whether through reduced routing options, increased rates or stranded investments due to service changes — your supply chain will be impacted,” Williams’ wrote in a Sept. 29 customer notification, which included step-by-step instructions for how to register opinions with the STB.
A number of trade associations whose members do business with freight railroads also are stepping up their criticisms of freight-rail consolidation. The American Chemical Council (ACC) is openly campaigning against the merger through a series of public statements and advertisements.
“The Union Pacific and Norfolk Southern merger creates a transcontinental monster,” the ACC stated in an Oct. 3 ad supplement to the New York Post. “It would allow one railroad to control nearly half of the rail traffic in the U.S. — choking off competition, driving up costs for manufacturers and consumers, and weakening America’s industrial strength. We need stronger supply chains, not a more powerful railroad monopoly.”
Meanwhile, on the labor front, unions’ reactions have been mixed so far. The Brotherhood of Locomotive Engineers and Trainmen has notified the STB that it will participate in the proceedings but hasn’t yet staked out an official position, while the Transport Workers Union of America said it’s “strongly opposed” and urged regulators, shippers and other unions to block the merger.
Right after the merger announcement in July, SMART-Transportation Division (SMART-TD), the nation’s largest rail workers’ union, said it would “vehemently deny” and challenge the proposal once it reached the STB. The union’s leaders expressed fears of significant job losses and rail service disruptions should the railroads be allowed to combine.
But two months later, SMART-TD reversed its position after reaching an “historic agreement” with UP that ensures job protection for thousands of railroaders working in train and yard service. UP committed that the employees will not face involuntary furloughs because of the merger, according to the railroad and union’s joint press release.
Taking names
As merger supporters and opponents continue to stake out their positions, UP and NS have launched a joint website that helps make their case for how their marriage would modernize the American freight network, strengthen the national supply chain and enhance U.S. economic competitiveness.
Highlighted are “voices of support” for what would be America’s first transcontinental freight railroad, including from elected officials, logistics and trucking firms, ports, manufacturers, associations and trade groups, public policy leaders and think tanks.
The site also outlines a “path to completion” — the steps necessary to complete the merger. So far, the companies’ boards of directors have unanimously approved UP’s acquisition of NS. Next, the proposal will go to the boards’ shareholders for a vote and then on to the STB for consideration.
While it remains to be seen whether the government shutdown will lengthen the path, the website states the companies are targeting early 2027 for the merger transaction’s closing.
