UP, Norfolk Southern Seek STB Approval for Rail Mega-Merger

Union Pacific (UP) and Norfolk Southern (NSC) have formally asked the US Surface Transportation Board (STB) to approve a merger that would create what the companies describe as America’s first transcontinental freight railroad. The application, nearly 7,000 pages, was filed on Dec. 19, 2025, following a merger agreement signed July 29, 2025, and is now moving into the STB’s major-transaction review process.

UP and Norfolk Southern argue the tie-up is a “classic end-to-end” combination that would connect complementary East-West networks into a single system of about 80,467.2km across 43 states and more than 100 ports. Executives said the goal is to strengthen US supply chains by offering more single-line service and fewer interchange handoffs.

In their filing and accompanying materials, the railroads say the combined network would:

• Convert about 10,000 existing interline lanes into single-line routes, reducing time-consuming handoffs between carriers

• Eliminate an estimated 2,400 railcar/container handlings and 60,000 car-miles per day through more direct routings

• Shift an estimated 2 million long-haul truckloads per year from road to rail, framing this as a congestion, safety, and emissions benefit

• Invest about US$2.1 billion in incremental capital to integrate the two systems and support expected synergies, alongside projected US$133 million in annual capital synergies

The companies also emphasize labor commitments, stating that all union employees on the payroll at the time of closing would retain union jobs, and that traffic growth could add about 900 net new union positions by the third year after completion.

UP and Norfolk Southern say they would keep existing gateways open for eligible traffic on “commercially reasonable” terms and introduce a voluntary “Committed Gateway Pricing” approach aimed at simplifying interline pricing for thousands of locations that might not otherwise benefit directly from the merger. They also argue the merger would preserve competitive options for nearly all customers, noting only three locations, out of more than 20,000 served by the two railroads, would become “two-to-one” (served by UP and NS but no other carrier). 

Beyond coast-to-coast domestic lanes, the combined railroad would provide more direct single-line access to over 100 ports and 10 international gateways, including links to Canada and Mexico, an angle likely to draw attention from shippers that move automotive, industrial, and intermodal freight across North American corridors.

The STB Timeline: What Happens Next

The STB has confirmed it received the UNP-NS major merger application and opened an initial comment period focused only on whether the filing is complete under the agency’s major merger rules (49 CFR Part 1180). Comments on completeness are due Dec. 29, 2025, and the applicants may reply by Jan. 2, 2026. 

After that, the STB will decide whether to accept the application as complete or reject it as incomplete, separate from any decision on the merger’s merits. The proceeding is being handled under Docket No. FD 36873, where filings and decisions will be posted. UNP and NS say they expect the transaction could close by early 2027, subject to approval and ongoing oversight.

CPKC Backlash

Canadian Pacific Kansas City (CPKC), which bills itself as the only single-line railway linking Canada, the United States, and Mexico, responded quickly to the Dec. 19 filing, saying it is reviewing the application for compliance with the STB’s 2001 major merger framework and for consistency with the public interest.

CPKC warns the deal would be “unprecedented in scale and scope” and urged shippers, associations, governments, and other stakeholders to file comments describing potential impacts, including “new limitations” on shipping options and “new risks” to rates and service quality.