Union Pacific Corporation and Norfolk Southern Corporation have filed a merger application with the Surface Transportation Board (STB) to create America's first transcontinental railroad.
The merger aims to improve competition, efficiency, and customer service in the rail industry.
The application includes significant details on how the merger will benefit stakeholders and the broader public.
Transforming Transportation
End-to-end merger to connect coast-to-coast, increasing efficiency and reducing handoffs between railroads.
Efficiency Boost
Estimated elimination of 2,400 rail car and container handlings and 60,000 car-miles daily.
Job Protection and Growth
Commitment to retain all union jobs with expected creation of 900 new union jobs post-merger.
Competition Enhancement
Voluntary creation of Committed Gateway Pricing to streamline pricing for customer locations.
Investment and Synergies
Planned $2.1 billion incremental capital investment and projected $133 million annual capital synergies.
- The merger will enhance railroad competition by creating a transcontinental network and offering competitive pricing options.
- Efficiency improvements will lead to the transfer of freight from road to rail, reducing congestion and wear on highways.
- The Watershed region will benefit economically from improved rail connectivity and increased freight movement.
The Union Pacific and Norfolk Southern merger application represents a significant step towards building America's first transcontinental railroad, promising improved efficiency, competition, and public benefits in the rail industry.