UP envisions a smooth IT integration with NS if the Class Is merge
1/5/2026
By Jeff Stagl, Managing Editor
When it comes to sizing up the proposed Union Pacific Railroad-Norfolk Southern Railway merger, many potential issues have been cited by rival railroads, shippers, legislators, labor unions and other stakeholders.
One of them is the possible complications and impacts of integrating the two Class Is’ information technology (IT) systems if their merger is approved by federal regulators. Recently, Canadian Pacific Kansas City encountered cutover problems that led to operational woes when CP’s and Kansas City Southern’s IT systems were combined.
UP and NS aren’t anticipating a similar experience. The Class Is’ IT systems are similar in many ways and the technology teams at both railroads will be prepped and ready for an integration if the merger occurs, said UP Executive Vice President and Chief Information Officer Rahul Jalali during a media train event held Nov. 12 in and around Chicago.
Change management is key, he said. The change management process is a structured approach that can help guide organizations though major shifts — involving such steps as preparing for change, planning a vision, implementing a plan and analyzing results — to ensure a smooth transition, minimize disruptions and achieve a desired outcome.
Poor change management often is the main reason companies encounter problems when integrating IT systems, Jalali said.
“It’s not the technology itself that is the tough part. It’s how you implement the technology that gets companies in trouble,” he said.
A former technology director and executive at Walmart for 24 years, Jalali has been involved in 14 IT system cutovers during his career.
“I know a thing or two about integrations and the mistakes that are made in integrations,” he said.
In January 2024, UP shut down its mainframe IT system to boot up NetControl, a new cloud-based system that provides real-time data, artificial intelligence integration and smarter decision-making tools.
Jalali (at far right) oversaw UP’s mainframe IT system conversion to NetControl, a new cloud-based system that provides real-time data, artificial intelligence integration and smarter decision-making tools.Union Pacific Railroad“Think of it like the guts of Union Pacific,” Jalali said. “It provides rich, real-time data.”
NetControl manages trains, assets and customer shipments. Implementing the new IT system enabled UP to become the first Class I to modernize all four core platforms, including positive train control, computer-aided dispatching and transportation management, Jalali said.
The switch over to NetControl didn’t affect operations or shippers.
“There was no customer that had any down time,” Jalali said.
If UP extends NetControl to NS, the integration would be gradual versus UP’s relatively quick launch. And it will be well planned out, including the necessary training for field and office workers, Jalali said.
“We’ve really developed a playbook around this precision implementation, as well as a very good model of change management,” he said.
UP currently is evaluating NS’ IT systems. Some of the systems that NS developed might be incorporated into the integrated entity. For example, NS offers AccessNS, a tool that enables customers to more efficiently conduct business with the railroad and manage shipments.
“If there’s a product that we like on the other side, we will not have the ego to say, ‘We will still only implement our own product,’” Jalali said.
