On July 29, Union Pacific announced its intention to acquire Norfolk Southern for $85 billion. The deal would create the first transcontinental railroad in the United States operated by a single company. The combined entity, to be called The Union Pacific Transcontinental Railroad, would connect Union Pacific’s western rail network with Norfolk Southern’s eastern routes. This merger would cover more than 50,000 route miles across 43 states and link about 100 ports.
Fred Ashton, Director of Competition Policy at American Action Forum, commented on the proposed merger: “In a new insight, Director of Competition Policy Fred Ashton explains how, despite antitrust scrutiny, the merger will likely provide efficiencies that could lower costs to shippers and reduce rail interchange delays.”
The Surface Transportation Board is responsible for reviewing the competitive effects of the merger. The agency will assess whether efficiency gains outweigh concerns such as potential restrictions on rival companies’ access to connecting tracks. This review will follow newly established guidelines that place greater requirements on merging firms.
If approved, this transaction could reshape freight transportation by providing a single-firm transcontinental service and potentially reducing costs and delays for shippers.
