Union Pacific and Norfolk Southern consider merger for largest North American railroad
- Union Pacific and Norfolk Southern are engaged in merger discussions that began in early 2025.
- The proposed merger would create the largest railroad in North America, linking both coasts.
- There is skepticism about regulatory approval due to concerns about competition and shipping options.
In early 2025, Union Pacific and Norfolk Southern began discussions about a potential merger that could create the largest railroad in North America. This merger aims to connect the East and West Coasts more efficiently. Union Pacific, located in Omaha, Nebraska, generated $24.3 billion in revenue the previous year, while Norfolk Southern, based in Atlanta, reported $12.1 billion. Despite potential operational benefits, the merger faces scrutiny from regulators. The Surface Transportation Board has historically raised the bar for railroad mergers to ensure they enhance competition and serve public interest following past operational disruptions from similar deals. Stakeholders within the industry have expressed concerns that the merger could reduce shipping options for companies relying on rail transport, drawing attention to the already powerful status of major railroads.