Union Pacific–Norfolk Southern merger draws more support as critics push back

By Tom Joyce
The Center Square

Support is growing for the proposed merger between Union Pacific and Norfolk Southern as federal regulators continue reviewing what would become the first transcontinental freight railroad in the United States.

The plan, backed by former President Donald Trump, would link the East and West Coasts through one continuous rail system. The Surface Transportation Board must approve the deal before it can move forward.

Several labor unions that were once hesitant now say the merger will strengthen the industry.

SMART-TD, the largest rail union in the country, endorsed the proposal in September. Additionally, the National Conference of Firemen and Oilers backed the deal this week.

The National Conference of Firemen and Oilers said the merger “will enhance job security, create pathways for member growth, and improve working conditions through sustainable investment and innovation.”

Farm cooperatives, international logistics firms, and major trucking carriers have also supported the merger. That includes Central Farm Service in Minnesota and Iowa, Katoen Natie, and Knight-Swift Transportation Holdings, the largest full-truckload carrier in the country.

State officials and business leaders say the combined system would shorten shipping times and reduce costs for manufacturers.

Georgia state Rep. Kasey Carpenter, R-Dalton, said a coast-to-coast single-line system would help companies move products without delays caused by frequent handoffs.

“A single-line rail service stretching from the East to West Coasts would allow Georgia manufacturers to move goods more efficiently and at a lower cost,” he wrote in an opinion article. “Fewer interchanges in the supply chain would reduce delays, shorten transit times and bolster businesses’ operations statewide.”

Former U.S. Rep. Steve Stivers, R-Ohio, who now leads the Ohio Chamber of Commerce, said the merger would give manufacturers better access to ports and international markets.

“By creating a seamless rail network spanning 10 international interchanges and approximately 100 ports, this merger would fundamentally reshape how American manufacturers compete on the world stage,” he wrote in an op-ed. “It would unlock stronger trade routes, allowing Ohio’s manufacturers to reach global markets more efficiently and cost-effectively.”

Supporters also argue that the new system would help the country compete with Canadian railroads and with China’s Belt and Road initiative.

However, not all railroads agree. One of the loudest critics is Canadian Pacific Kansas City, a major competitor.

The company argues that railroads can coordinate through cooperative agreements instead of merging. However, when CPKC defended its own merger in a 2021 filing to the Surface Transportation Board, then-Kansas City Southern CEO Patrick J. Ottensmeyer said cooperation agreements do not produce the same benefits as a full merger.

“Unfortunately, as is often the case when two railroads try to collaborate on arrangements such as joint marketing and joint operating agreements, they fail,” he wrote at the time.

Other opponents include companies that fear consolidation could reduce competition or shift traffic away from their networks.

The Surface Transportation Board’s review is expected to take many months. Federal regulators will consider how the merger impacts competition, safety, and service quality before making a final decision.