Union Pacific Corporation and Norfolk Southern Corporation filed a merger application with the Surface Transportation Board for the creation of America's first transcontinental railroad.
The application highlights the benefits of the merger, including enhanced competition, efficiency improvements, and job preservation.
The merger aims to connect the United States coast to coast, transform existing lanes, and compete effectively with long-haul trucking.
End-to-End Combination
Creates America's first transcontinental railroad connecting 43 states and more than 100 ports.
Efficiency Improvements
Estimated to eliminate 2,400 rail car handlings and 60,000 car-miles daily, providing a more efficient freight transportation system.
Job Preservation
All union jobs will be protected, with an expectation of creating about 900 net new union jobs by the third year post-merger.
Enhanced Competition
Combination aims to enhance competition, streamline pricing, and provide customers with unified digital experiences for their rail journeys.
Capital Investments
An estimated $2.1 billion of incremental capital will support revenue and cost synergies, with expected annual capital synergies of $133 million.
- The merger will facilitate faster and more reliable single-line rail service, enhancing competition in the industry.
- It is estimated that the merger will shift 2 million truckloads of freight from road to rail annually, reducing congestion and wear on highways.
- The combined network will provide competitive options for customers and offer a stronger, more efficient national rail system.
With a focus on enhancing competition, improving efficiency, and providing job security, the Union Pacific and Norfolk Southern merger application seeks to revolutionize freight transportation in the U.S.