Union Pacific, Norfolk Southern discuss merger to create transcontinental railroad, AP source says
Share this @internewscast.com

OMAHA, Neb. (AP) — Union Pacific and Norfolk Southern are negotiating a merger to form North America’s largest railroad, linking the East and West Coasts.

According to someone knowledgeable about the negotiations, which started in the first quarter of the year, the merger would unite the largest and smallest of the nation’s six key freight railroads.

Both railroads declined to comment.

There is considerable debate within the industry on whether the Surface Transportation Board would sanction such a merger, even though it greenlit the creation of the CPKC railroad two years ago when Canadian Pacific purchased Kansas City Southern for $31 billion.

That merger combined the two smallest major railroads in North America and left only six major freight railroads. But it was the first major rail merger approved in more than two decades.

The bar for railroad mergers in the U.S. was raised substantially at the start of the century after a disastrous combination of Union Pacific and Southern Pacific in 1996 that snarled rail traffic for an extended period, followed by the 1999 split of Conrail between Norfolk Southern and CSX, which created backups in the East. To be approved, any major rail merger must show it will enhance competition and serve the public interest under the 2001 rules.

Union Pacific CEO Jim Vena talked earlier this year about the potential benefits of such a merger because it would streamline deliveries all across the country by eliminating the delays that come along with one railroad handing shipments over to another. Plus it would simplify shipping for the companies that rely on railroads to deliver their raw materials and finished products.

But in the past, shippers have raised concerns about the consequences of being left with even fewer options to ship their goods because the major railroads are already so powerful.

Some investors have long argued that the industry should eventually consolidate down to two East-West railroads crossing the United States and one railroad in Canada. But regulators have been skeptical and taken a cautious approach. Any proposed deal would face a lengthy STB review. That board is currently evenly split between two Republicans and two Democrats with one seat open.

Citi Research analyst Ariel Rosa said in a research note that a major transcontinental railroad merger “would likely prove costly and time consuming, risking a years-long distraction to management, while facing significant pushback from regulators, politicians, employee unions, competitors, customers, and other stakeholders.”

Union Pacific, which is based in Omaha, Nebraska, generated $24.3 billion revenue last year as its more than 30.000 employees delivered freight all across the western United States. Norfolk Southern reported $12.1 billion revenue and has roughly 20,000 employees and its headquarters is in Atlanta.

Norfolk Southern stock gained 3.7% during the day Thursday and rose another 4.7% to hit $282.50 in after-market trading following the Journal’s story.

Share this @internewscast.com
You May Also Like
US kills 6 suspected narco-terrorists in overnight strike on alleged drug smuggling boat, Hegseth says

U.S. Conducts Overnight Strike Eliminating Six Suspected Narco-Terrorists on Alleged Drug-Smuggling Vessel, Hegseth Reports

President Donald Trump authorized a nighttime U.S. military strike on a vessel…
Eight Americans arrested in Bahamas after authorities discover 'high-powered weapons' cache, ammunition

Shocking Discovery: Eight Americans Detained in Bahamas for Hidden Arsenal of High-Powered Weapons

In a significant operation on Tuesday, eight American citizens were detained in…
Sonya Massey death: Jury shown autopsy photos as testimony continues in murder trial of former Illinois deputy Sean Grayson

Shocking Courtroom Revelations: Autopsy Photos Unveiled in Gruesome Murder Trial of Ex-Illinois Deputy

PEORIA, Ill. — On Thursday, the murder trial of former Sangamon County…
Oswego, Illinois Chick-fil-A: Darryl Lee Jr., 19, charged with murder in stabbing attacks at restaurant on Route 34, officials say

Tragic Incident: 19-Year-Old Charged with Murder in Oswego’s Route 34 Chick-fil-A Stabbing

OSWEGO, Ill. (WLS) — Authorities have charged a suspect in connection with…
42-year-old cold case closed after detectives crack into discovered confession

Detectives Solve 42-Year-Old Cold Case with Newly Uncovered Confession

A chilling chapter from 1983 has finally reached its conclusion in Nassau…
Fox News ‘Antisemitism Exposed’ Newsletter: Rabbis' stern Mamdani warning

Rabbis Issue Strong Warning to Zohran Mamdani in Fox News’ ‘Antisemitism Exposed’ Newsletter

Fox News’ “Antisemitism Exposed” newsletter offers insights into the growing tide of…
Chicago CTA riders brace for weekend work halting of trains on elevated Loop tracks on Brown, Green, Orange and Pink lines

Chicago Transit Alert: Major Weekend Disruptions on Loop Elevated Tracks for Brown, Green, Orange, and Pink Lines

CHICAGO (WLS) — This weekend might pose difficulties for CTA riders as…
Trump Team Eviscerates Schumer After He Tries to Deceive American People About Ballroom

Trump’s Team Criticizes Schumer’s Alleged Misrepresentation of Ballroom Details to the Public

How disconnected have the Democrats become? They’re prioritizing the protection of undocumented…
Expert warns critical hours slipping away as kidnappers likely to move US missionary in Niger

Urgent Countdown: US Missionary’s Fate Hangs in Balance as Kidnappers Prepare to Relocate in Niger

A security specialist has highlighted the urgency of the initial 48 hours…
Security at California Coast Guard base opens fire on U-Haul truck posing 'direct threat'

California Coast Guard Base Incident: Security Neutralizes ‘Direct Threat’ from U-Haul Truck

On Thursday night, shots were fired at a Coast Guard facility in…
Trump says he's ending trade talks with Canada over TV ads

Trump Halts Trade Negotiations with Canada in Response to Television Advertisements

In a striking development on Thursday evening, President Donald Trump declared an…
Man accused of killing teacher wife after wandering shirtless and warning of ‘too many cops’ nearby: police

Shirtless Man Arrested for Allegedly Killing Teacher Wife, Claims ‘Too Many Cops’ Were Close: Police Report

A Texas man has been taken into custody following allegations that he…