Railroad merger will streamline freight, power America’s economy and create jobs
by Union Pacific and Norfolk Southern · The Washington TimesOPINION:
On April 30, our companies, Union Pacific and Norfolk Southern, submitted an amended application to the Surface Transportation Board (STB) to merge our two railroads and create America’s first transcontinental railroad. We call it The Great Connection for the following reasons.
A coast-to-coast breakthrough: The Great Connection will create the first unified, transcontinental rail network in the United States, eliminating costly handoffs and giving shippers a single, seamless partner from coast to coast.
Faster, safer, more reliable service: By reducing interchange points and improving network integration, the combination will cut transit times, strengthen supply chain visibility and reduce opportunities for cargo theft and disruption.
Stronger competition, lower costs: With virtually no route overlap, this end-to-end combination enhances competition across the broader freight market, putting downward pressure on rates while delivering better service for customers.
Economic and environmental gains: The network is expected to shift millions of truckloads to rail annually, easing highway congestion, lowering emissions and delivering billions in cost savings to American businesses.
Jobs protected: Union Pacific and Norfolk Southern have committed to a guaranteed “Jobs for Life” pledge for every union employee at the time of the merger, regardless of economic conditions. It is an unprecedented agreement already formalized with multiple labor unions and designed to protect railroad families while supporting long-term growth.
The combined network will span 50,000 route miles across 43 states with access to more than 100 ports and 10 international gateways into Canada and Mexico. Six connection points will tie our two systems together, with virtually no route overlap, thus eliminating costly interchanges and enabling freight to take a more direct path towards its cross-country destination.
Today, freight moving coast to coast typically gets handed off from a western railroad to an eastern one somewhere in the middle of the country. That handoff adds time and cost. One analysis found that shipments requiring handoffs between rail operators cost 34% more on average for merchandise moving 1,000 to 1,500 miles than comparable single-line service.
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The lack of interoperability makes it difficult for shippers to track locations, delivery dates and disruptions, especially for long-distance shipments that require multiple transfers.
“By uniting these rail networks, Union Pacific and Norfolk Southern are taking a logical step to improve agricultural logistics,” KC Graner, president and CEO of Central Farm Service, said. “We expect to see faster shipments, fewer delays, and better rail access… This merger will strengthen the farm supply chain and help us serve our growers even better.”
The Union Pacific-Norfolk Southern combination is expected to shift 2.1 million truckloads from road to rail each year, according to an analysis from leading industry advisor Oliver Wyman. That means less highway congestion, less wear on publicly funded roads and bridges and nearly 3.8 million fewer metric tons of carbon dioxide emissions a year when fully implemented.
Shippers stand to save an estimated $3.5 billion a year by moving more long-haul freight by rail, since railroads offer competitive per-mile rates and are less susceptible to fuel cost fluctuations.
“This merger will enhance competition in the marketplace,” Union Pacific CEO Jim Vena said. “That competition will spur innovation and help lower costs benefits that shippers and American consumers will feel directly.”
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“Our merger will create strong growth by providing customers a superior service product, which in itself creates competition in the railroad industry,” Norfolk Southern President and CEO Mark George said. “The announcement of our merger alone has caused other railroads to respond with new offerings.”
The combination will also create jobs. Our latest analysis — the first in rail merger history to use 100% actual traffic data provided by all six North American Class I railroads — estimates that the merger will create 1,200 net new union jobs by Year 3.
We have guaranteed “Jobs for Life” to every union employee working for Union Pacific or Norfolk Southern at the time of the combination, regardless of economic conditions. That pledge has been formalized with six railroad unions, including the International Association of Sheet Metal, Air, Rail and Transportation Workers-Transportation Division (SMART-TD), the industry’s largest.
“This is a proud day for our members,” SMART-TD President Jeremy R. Ferguson said when the agreement was announced. “For generations, railroaders have worried about what mergers might mean for their jobs. Today, the biggest railroad and the biggest rail union in America are breaking new ground. We are protecting jobs, protecting families, and protecting the future of the U.S. supply chain.”
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The case has resonated. More than 2,000 businesses, unions, farmers and community leaders have written to the STB in support, over 700 of them commercial partners.
“As a company that operates thousands of trucks and thousands of intermodal containers, we know the power of combining modes,” Knight-Swift Transportation CEO Adam Miller said. “This unified rail system will let us seamlessly integrate our trucking with rail on cross-country shipments like never before. The result will be faster deliveries, and lower fuel usage, which is great news for American businesses.”
Our amended filing addresses key issues raised by the STB in response to the initial application. The agency is expected to decide whether the revised application will be accepted by the end of May.
We expect to close the combination in the first half of 2027. America has waited a long time for a transcontinental railroad. The Great Connection will finally deliver one.
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We encourage readers and others who want to know more to visit our website, AmericasGreatConnection.com, or read the facts included in the STB filing yourself.