An application has been submitted to the USA’s Surface Transportation Board for Union Pacific Corporation to merge with Norfolk Southern Corporation, which, if approved, would create America’s first transcontinental railroad.

Analysis of the merger, using 100% actual traffic data, shows that it would drive growth, produce substantial cost savings for shippers, and strengthen the supply chain. The merger will also make rail transportation significantly more competitive, and would take around 2.1 million trucks off the roads.

By using low-cost rail instead of higher-cost trucks, it is estimated that shippers would benefit from annual $3.5 billion cost savings. Those savings would lead to lower consumer prices, whilst shippers would save on inventory and equipment costs.

A merger between Union Pacific and Norfolk Southern would be an end-to-end merger, which would connect the eastern and western USA, with virtually no overlap in operations. The merged railroad would provide the opportunity to develop new routes, remove the need for interchange between carriers, save one to two days in transit times, and reduce supply chain costs. It is projected that the merger would be complete by the first half of 2027. More information is online at AmericasGreatConnection.com.

In February this year, Union Pacific placed a $1.2 billion contract with Wabtec to modernise its type AC4400 locomotives; this is the largest investment in upgrading locomotives in the history of railways. Two years ago, Norfolk Southern trialled a new safety reporting system similar to the UK’s Confidential Incident Reporting and Analysis Service.

Jim Vena, Union Pacific CEO, commented that this merger would enhance competition and deliver real public benefits that strengthen America’s supply chain.

“This merger is fundamentally about growth. Shippers have been clear about what they value, and the data backs it up. When single-line rail service is available, they choose it. Our combined network will deliver seamless freight moves within and across the Mississippi watershed markets with one Class I railroad accountable from origin to destination.”

“Our projections show the combined railroad will move about the same number of tonmiles as our Western competitor does today, underscoring how this merger will enhance competition in the marketplace,” Vena said. “That competition will spur innovation and help lower costs – benefits that shippers and American consumers will feel directly.”Mark George, Norfolk Southern President and CEO