Courtesy of Union Pacific and Norfolk Southern 

In July of last year, Union Pacific (UP) and Norfolk Southern (NS) announced their agreement to create America’s first transcontinental railroad. These two legendary companies would seamlessly connect more than 50,000 route miles across 43 states from the East Coast to the West Coast — linking approximately 100 ports and nearly every corner of North America.

Fast-forward several months later. After UP and NS refiled their merger application with the Surface Transportation Board (STB) earlier this year, rail competitors such as BNSF Railway, Canadian Pacific Kansas City and CSX have been quick to comment on the refiled application.

So what’s the current status of the situation? Earlier this year, the STB initially rejected the application UP and NS filed on Dec. 19, 2025, citing it as “incomplete.” The two railroad giants refiled their application recently, on April 30, including information they claimed supported the merger to be one that will enable cost savings for shippers and strengthen overall supply chains.

According to rail industry observers, the potential merger is being met with significant opposition, including from other large rail carriers. BNSF, CPKC and CSX were some of the major railroads that participated in the STB’s comment period that ended on May 8.

UP and NS have responded to several comments they have received regarding the completeness of their refiled application to the STB. The two railroads state that “the amended proposal is comprehensive and complete” and provides all the information necessary.

Other railroads disagree. Here’s a summary at what they had to say about the refiled merger application.

BNSF Railway: Exaggerated Estimates for Truck-To-Rail Diversions?

BNSF made several points on why they deemed the refiled application as incomplete. Among them was BNSF’s comment that UP and NS have “exaggerated” estimates for truck-to-rail diversions, according to a docket filed on behalf of BNSF by its lawyers from Kirkland & Ellis LLP.

Interestingly, there’s been a recent increase in some food shippers shifting to rail or intermodal services. According to company statements, UP, NS and CSX have reported that their rail and intermodal services are expected to see volume benefits due to higher trucking rates and fuel costs, executives said in earnings calls.

However, BNSF argues that nearly all of the public benefits mentioned by UP and NS rely on truck-to-rail conversions In fact, BNSF claims UP and NS are careful not to promise to pass to customers any efficiency gains or cost reductions in the form of lower rates from UP.

Canadian Pacific Kansas City: Does It Serve the Interest of Shippers?

The major Canadian railway argues that the amended application doesn’t serve the interest of shippers and “puts our supply chains and economy at needless risk,” according to President and CEO Keith Creel in a May 11 press release.

Creel said that both UP and NS do not appear to have met the requirement of submitting a detailed market impact analysis of projected future shares of rail traffic for key commodities and corridors.

In a docket filing submitted to the STB on May 8, CPKC stated that for the application to be considered complete, both UP and NS must include a market analysis containing revenues and traffic volumes for major interregional or corridor flows by commodity group. The market analysis is part of the STB’s regulation for “major and significant transactions,” per the government agency’s code of regulations.

CSX: Enhanced Rail-To-Rail Competition?

CSX stated that UP and NS have not provided sufficient evidence to make their case under STB rules established in 2001, such as proving the merger provides enhanced rail-to-rail competition, per CSX’s docket filed with the STB.

The Jacksonville, FL-based railroad said that UP and NS do not offer any proposal to enhance rail-to-rail competition. Instead, the two parties claim that the creation of the proposed transcontinental railroad will enhance competition “‘on its own.’”

UP and NS stated in their amended application that the merger’s efficiencies of being a single-line rail service alone would make it more competitive to trucking. According to CSX, UP and NS have not yet complied with the STB’s order to submit ordinary-course competition and efficiencies analyses of their proposed merger, which the Board directed them to submit before they re-filed their application.

Related Articles:

• A Closer Look at Trucking and Rail/Intermodal Sector Economic Indicators
• Leading Food Shippers Are in Optimization Mode
• Rail Shippers Take Concerns to U.S. Regulators
• Anatomy of a Capacity Crisis: Underlying Trends Plaguing Supply Chains
• Shippers Push FMC to Expand Oversight on Demurrage, Terminal Dwell Fees

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