Surface Transportation Board Accepts Revised Union Pacific–Norfolk Southern Merger Application

The Surface Transportation Board accepted a revised Union Pacific–Norfolk Southern merger application effective May 28, 2026, and simultaneously placed the proceeding in abeyance pending supplemental information. Union Pacific and Norfolk Southern have described the roughly $85bn stock transaction as creating a combined enterprise valued at approximately $200bn, though the STB filing itself does not use that figure. The filing seeks regulatory approval to merge Union Pacific's West Coast network with Norfolk Southern's East Coast operations into what the companies call the first transcontinental railroad in US history.

Union Pacific and Norfolk Southern describe the merger as creating the United States' first coast-to-coast Class I railroad under unified management, operating as a single-line network spanning from the Pacific to the Atlantic and eliminating interchange requirements for transcontinental freight movements.

The application accepted on May 28 is a revised filing: Union Pacific and Norfolk Southern first filed for the merger on 19 December 2025, the STB rejected that filing as incomplete on 16 January 2026, and the companies refiled a revised application on 30 April 2026, which the STB accepted effective 28 May 2026.

The proposed merger has drawn opposition from shipper groups and labour representatives citing concerns about reduced competition and potential service impacts. Critics argue the consolidation could increase freight rates for agricultural shippers, raise consumer prices through higher transport costs, displace railroad jobs through network rationalization, and reduce safety accountability. Opposition statements note specific concerns about higher shipping costs, consumer price increases, railroad job losses, and safety risks. The STB's acceptance of the application opens a formal review process, though the proceeding — including environmental review — is currently held in abeyance pending supplemental information from the companies; a final determination is not expected before the proceeding resumes, with closure of the review anticipated in mid-2027.

Union Pacific operates approximately 32,200 route miles across 23 western states. Norfolk Southern's network covers 19,300 route miles in 22 eastern states. The combined system would span the entire continental United States with no gaps requiring interchange between carriers on transcontinental shipments. The merged railroad would operate as a single entity connecting the Pacific and Atlantic coasts under unified management, eliminating the need for handoffs between separate carriers that currently handle long-haul freight across the country. Both CEOs have made the case for the merger through presentations at industry events and through the formal STB filing process.