Union Pacifics 85B Norfolk Southern Merger Delayed Amid Opposition

Published: 01/21/2026
Railroad Merger Union Pacific Norfolk Southern
The proposed $85 billion merger between Union Pacific and Norfolk Southern has been delayed due to technical issues, sparking strong opposition from competitors. BNSF accuses UP of hindering competition, while NAWE expresses concerns about the merger's impact on the intermodal network. The Surface Transportation Board's (STB) review will determine the fate of this potentially transformative deal in the railroad industry, often referred to as a 'marriage of the century'.
Union Pacifics 85B Norfolk Southern Merger Delayed Amid Opposition

A proposed $85 billion merger between Union Pacific (UP) and Norfolk Southern (NS) that would create America's first transcontinental railroad has been delayed due to technical issues, while facing mounting opposition from competitors and regulatory scrutiny.

Merger Timeline Extended

Union Pacific CEO Jim Vena revealed at this week's UBS Global Industrials and Transportation Conference that the merger application submission to the Surface Transportation Board (STB) has been postponed by approximately two weeks. The delay stems from contractors needing to rework certain materials.

"We are committed to ensuring the final materials submitted to the STB meet the highest standards," Vena stated, emphasizing the company's dedication to providing comprehensive responses to regulatory inquiries. The application is now expected to be filed in mid-December.

Creating a Rail Giant

The combined entity would connect both U.S. coasts through a network spanning 43 states with over 50,000 miles of track and access to approximately 100 ports. Vena described Norfolk Southern as Union Pacific's "ideal partner," claiming the merger would streamline cross-country freight movement by reducing intermediate handling.

Mounting Opposition

BNSF Railway has petitioned the STB to review conditions from Union Pacific's 1996 merger with Southern Pacific before considering the new proposal. BNSF alleges UP has engaged in anti-competitive practices that harmed customers.

"With Union Pacific now proposing an unprecedented merger with Norfolk Southern, the stakes for the nation's shippers could hardly be higher," said Jill Mulligan, BNSF's Executive Vice President and Chief Legal Officer. "We're asking the Board to ensure UP fulfills its prior merger commitments before considering any new consolidation."

Industry Concerns

Independent rail analyst Tony Hatch noted at the recent RailTrends conference that competitors are adopting a wait-and-see approach: "If this merger creates a superpower that disadvantages other Class I railroads, they'll pursue their own mergers. This isn't simple - it's potentially the most significant decision in the industry's 200-year history due to its ripple effects."

BNSF's Chief Marketing Officer Tom Williams raised concerns about reduced competition, noting the merger would eliminate two of four existing transcontinental rail routes under the proposed UP-NS combination.

"The new standard requiring enhanced competition hasn't been tested. When you eliminate two major routes, you're effectively removing all associated connecting lines," Williams cautioned.

Port Operators Weigh In

The National Association of Waterfront Employers (NAWE) has expressed concerns about the merger's potential impact on intermodal shipping networks critical to supply chains. NAWE President Carl Bentzel emphasized the need for expanded rail services to support port growth and regional economies.

"We have serious concerns about whether reducing four major rail competitors to three would benefit our industry," Bentzel wrote to the STB, highlighting the importance of rail partnerships for port development.

The merger's fate now rests with STB regulators, who must weigh competitive concerns against potential efficiency gains in what could become a landmark decision for U.S. transportation infrastructure.

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