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[BUSINESS] · United States · 3 sources

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Union Pacific and Norfolk Southern advance transcontinental merger

Union Pacific and Norfolk Southern are advancing their proposed $85 billion merger to create the first transcontinental railroad in the United States. The Surface Transportation Board (STB) recently denied applications from opponents to dismiss the merger, allowing the federal review process to continue.

The companies claim the merger will create a 50,000-mile rail system spanning 43 states, offering more efficient freight options and potentially removing two million truckloads from highways. To address labor concerns, the International Association of Sheet Metal, Air, Rail and Transportation’s Railroad Mechanical Department (SMART-MD) has entered into a ‘jobs-for-life’ agreement, ensuring union employees retain their positions.

However, some lawmakers are calling for a halt to the process. Pennsylvania State Senator Steve Santarsiero and State Representative Jim Prokopiak have submitted comments to the STB requesting a pause until full environmental and safety evaluations are completed. They specifically cited concerns regarding infrastructure, federal oversight, and air quality impacts on the Morrisville Line in Bucks County.

Entities

Norfolk Southern Corporation · Surface Transportation Board