### Historic Merger Proposal: Union Pacific and Norfolk Southern Aim to Reshape U.S. Rail Industry Union Pacific and Norfolk Southern have officially submitted a proposal to merge, valued at **$85 billion**, to federal regulators. This merger is poised to create the first transcontinental railroad in the United States, combining their extensive rail networks into a single system that spans approximately **50,000 miles**. The merger, announced in July 2025, is expected to face significant scrutiny from the Surface Transportation Board (STB) and various stakeholders concerned about potential monopolistic practices and disruptions to supply chains [https://wtop.com/government/2025/12/union-pacific-and-norfolk-southern-file-historic-85-billion-rail-merger-proposal-with-federal-regulators][https://www.indexbox.io/blog/union-pacific-norfolk-southern-file-merger-to-create-first-transcontinental-railroad]. ### Structure of the Merger Proposal and Regulatory Process 1. **Merger Details**: - The merger aims to combine the operations of Union Pacific and Norfolk Southern, creating a coast-to-coast freight railroad. - The application submitted to the STB is nearly **7,000 pages** long, detailing the operational and economic benefits of the merger [https://www.freedom969.com/business/union-pacific-norfolk-submit-papers-for-regulatory-review-of-85-billion-merger]. 2. **Regulatory Review**: - The STB will conduct a thorough review of the merger application, which includes a **30-day period** for the board to request additional information or propose remedies [https://www.freedom969.com/business/union-pacific-kicks-off-regulatory-review-for-85-billion-coast-to-coast-rail-merger]. - Stakeholders, including competitors and trade groups, have expressed concerns about the potential for monopolistic behavior and its impact on supply chains [https://www.chemicalprocessing.com/industrynews/news/55339745/union-pacific-norfolk-southern-file-merger-application-with-federal-rail-board]. 3. **Public and Industry Response**: - There is growing opposition to the merger from various sectors, particularly in regions where Norfolk Southern operates significant rail lines, such as Alabama [https://www.rocketcitynow.com/article/news/local/union-pacific-and-norfolk-southern-seek-approval-for-85b-merger-amid-growing-opposition]. - The merger is touted to remove **2 million trucks** from the roads, particularly in the Midwest, which proponents argue will enhance efficiency and reduce congestion [https://railfan.com/up-ns-submit-application-for-transcontinental-merger]. ### Supporting Evidence and Data - **Merger Impact**: - The proposed merger is expected to create the first U.S. transcontinental railroad, enhancing freight transportation efficiency across the country [https://apnews.com/press-release/business-wire/creating-americas-first-transcontinental-railroad-union-pacific-and-norfolk-southerns-stb-merger-application-details-enhancements-to-competition-and-public-benefits]. - The combined network would cover **50,000 miles**, significantly increasing the operational capacity of both railroads [https://www.indexbox.io/blog/union-pacific-norfolk-southern-file-merger-to-create-first-transcontinental-railroad]. - **Regulatory Scrutiny**: - The STB's review process is critical, as it will assess the merger's implications for competition and public benefits, with a focus on preventing monopolistic practices [https://www.freedom969.com/business/union-pacific-kicks-off-regulatory-review-for-85-billion-coast-to-coast-rail-merger]. ### Conclusion: A Pivotal Moment for U.S. Railroads The proposed merger between Union Pacific and Norfolk Southern represents a significant shift in the U.S. rail industry, with the potential to create a **transcontinental freight railroad** that could reshape logistics and transportation. However, the path to approval is fraught with challenges, including regulatory scrutiny and opposition from various stakeholders. 1. **Merger Proposal**: Union Pacific and Norfolk Southern have filed for an **$85 billion** merger to create a transcontinental railroad. 2. **Regulatory Review**: The STB will conduct a detailed review, with a focus on competition and public benefits. 3. **Industry Concerns**: Growing opposition highlights fears of monopolistic practices and supply chain disruptions. The outcome of this merger will have lasting implications for the rail industry and the broader economy, making it a critical event to monitor in the coming months [https://wtop.com/government/2025/12/union-pacific-and-norfolk-southern-file-historic-85-billion-rail-merger-proposal-with-federal-regulators][https://www.chemicalprocessing.com/industrynews/news/55339745/union-pacific-norfolk-southern-file-merger-application-with-federal-rail-board].