en.Wedoany.com Reported - On August 6, five U.S. shipper industry organizations filed a joint motion with the Surface Transportation Board, requesting the direct dismissal of the amended application for Union Pacific's acquisition of Norfolk Southern Railway. The organizations argued that the application and supplemental materials submitted by the two companies still fail to adequately demonstrate that this $85 billion transaction meets the public interest standard, and therefore should not proceed to the subsequent comprehensive review process.
The joint motion was filed jointly by the Alliance for Chemical Distribution, the American Chemistry Council, the American Fuel & Petrochemical Manufacturers, the Fertilizer Institute, and the National Industrial Transportation League. The organizations stated that the existing materials do not comprehensively assess the potential impacts of reduced rail competition, transportation service disruptions, and subsequent industry consolidation, while also lacking specific measures that could improve competitive options for shippers.
Union Pacific and Norfolk Southern signed a merger agreement in July 2025 and submitted their regulatory application in December of the same year. The Surface Transportation Board returned the initial application in January of this year on the grounds of incomplete information; after the two companies resubmitted on April 30, the Board confirmed on May 28 that the materials met completeness requirements, but suspended the subsequent review and requested additional information on competitive impacts, market share, service guarantees, rail gateways, and potential follow-on mergers.
The two companies submitted supplemental materials on July 7 and 27 respectively, while also proposing to expand the rail gateway pricing mechanism, preserve alternative rail options for certain shippers, and allow customers to temporarily use other transportation services in the event of service degradation during the integration period. Union Pacific and Norfolk Southern expect that, if regulatory approval is obtained, the transaction could be completed by mid-2027.
If the transaction is approved, the combined rail network would connect the transportation systems of the eastern and western United States, forming the country's first single transcontinental freight rail operator. The two companies estimate that reducing rail interchange and transloading operations could save shippers approximately $3.5 billion annually; the shipper organizations, however, believe that the existing materials are insufficient to demonstrate that these benefits can offset market concentration and service risks. The Surface Transportation Board will first consider the dismissal motion before deciding whether the merger can proceed to the substantive and environmental impact review stages.
