Union Pacific and Norfolk Southern push $85 billion coast‑to‑coast rail merger

Union Pacific and Norfolk Southern told the U.S. Surface Transportation Board they are prepared to divest stakes in smaller lines such as the Terminal Railroad Association of St. Louis, Kansas City Terminal Railway and TTX Company if required. The proposed $85 billion transaction would create the first coast‑to‑coast freight rail operator in the United States, with the companies aiming to close the deal in the first half of 2027.

The railroads say the combined network would save shippers about $3.5 billion a year, improve service reliability, shift roughly 2.1 million trucks off the road and protect union jobs. The plan has drawn opposition from freight shippers, several state attorneys general and rival carriers BNSF Railway and Canadian Pacific Kansas City. President Donald Trump has publicly backed the merger and recently appointed a new Republican chairman to the STB, a move seen as potentially easing regulatory approval.