Union Pacific Plans $85B Coast-to-Coast Rail Merger

Union Pacific has proposed an $85 billion merger with Norfolk Southern to create the first coast-to-coast rail operator in the U.S., linking over 50,000 route miles across 43 states and approximately 100 ports. This deal, if approved, would be the largest railroad merger in U.S. history, aiming to streamline freight shipments nationwide. However, Canadian Pacific Kansas City opposes the merger, warning it could trigger an unnecessary wave of consolidations and advocate instead for partnerships and service innovations to support American businesses. The Surface Transportation Board (STB) faces a rigorous review process under new guidelines, balancing potential efficiency gains against risks such as blocking rival access to connecting tracks. Industry experts suggest that while bold mergers like this are under scrutiny, future growth in the rail sector may increasingly depend on strategic alliances, as evidenced by recent collaborations like BNSF and CSX’s coast-to-coast intermodal service. The market outlook on Union Pacific remains optimistic, with analysts rating its stock as an outperform and projecting potential price increases amid these developments.