en.Wedoany.com Reported - Union Pacific Corporation and Norfolk Southern Corporation jointly submitted a revised merger application to the U.S. Surface Transportation Board (STB), seeking to create the first transcontinental railroad in the United States.
The revised application analysis used 100% actual traffic data provided by all six Class I railroads in North America, making it the most comprehensive market and operational impact assessment in railroad merger history. The analysis confirms that the merger is expected to save shippers approximately $3.5 billion annually, derived from shifting freight from high-cost truck transport to low-cost rail transport, as well as inventory and equipment cost savings from faster and more reliable post-merger services. Additionally, it is projected to remove approximately 2.1 million trucks from the road each year.
Union Pacific CEO Jim Vena stated that after completing the additional analysis required by the STB, the facts remain clear—the merger enhances competition and delivers tangible public benefits. He emphasized that the analysis used system-wide traffic data from all Class I railroads to identify opportunities for rail growth and competition post-merger. Norfolk Southern President and CEO Mark George noted that shippers value single-line direct service managed end-to-end by one Class I railroad, and the merged network will enable seamless transportation within and across markets in the Mississippi River Basin.
The merger is an end-to-end connection with almost no overlapping routes, helping to eliminate current rail interchange processes that can add 24 to 48 hours of time and cost. The revised application increases premium intermodal routes planned for seven-day-a-week operations from six to seven, adding a new route connecting Northern California with the Southeast. The analysis also confirms that the merged company has sufficient equipment and infrastructure capacity to support projected growth without affecting customers' rights to access competitive rail services.
As business grows, it is also expected to create more high-paying union jobs. Estimates indicate that 1,200 net new union positions will be needed in the third year post-merger to handle new business, up from the initial estimate of 900. The two companies expect the transaction to close in the first half of 2027.
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