BNSF Opposes Union Pacific–Norfolk Southern Merger

en.Wedoany.com Reported - On September 10, BNSF Railway filed documents with the U.S. Surface Transportation Board (STB), formally opposing the proposed merger between Union Pacific and Norfolk Southern. BNSF stated that even if the STB ultimately approves the transaction, competitive protection conditions should be attached to mitigate the impact of increased concentration in the U.S. Class I freight rail network on shipper choice, rates, and service competition.

The merger application between Union Pacific and Norfolk Southern has now entered the STB's substantive review phase. On August 18, the STB lifted its previous suspension and established a formal procedural schedule for the merger case; the regulatory agency explicitly stated that this decision only initiates substantive review and does not represent a judgment of approval on the transaction itself. The case is numbered FD 36873, and the STB expects the entire review process may continue into the third or fourth quarter of 2027.

The conditions proposed by BNSF in this filing primarily focus on markets where competitive options would be reduced after the merger. BNSF previously stated that the merged railroad could control more than half of U.S. Class I rail service scale, and argued that some customers who could previously choose between Union Pacific and Norfolk Southern would be reduced from "two options" to "one option." BNSF is asking the STB to establish remedial conditions during the review, including line access, interchange, and competitive service requirements.

Canadian National Railway (CN) also filed proposed competitive protection conditions with the STB during the same period. CN plans to seek new rail access rights in certain markets in St. Louis and Kansas City, and to maintain competitive options for shippers in Des Moines, Iowa, and parts of central and southern Illinois. CN also plans to expand its Midwest network coverage through related trackage rights and terminal interests.

CN and Union Pacific signed a binding memorandum of understanding in July, with the related arrangements contingent upon the UP–NS merger receiving STB approval and completing the transaction. The agreement includes CN acquiring a portion of Norfolk Southern's interests in Kansas City Terminal Railway and Terminal Railroad Association of St. Louis, obtaining trackage rights on segments including Tuscola to East St. Louis, and gaining access to facilities such as Neff Yard in Kansas City.

The initial merger application between Union Pacific and Norfolk Southern was deemed incomplete by the STB in January 2026, resubmitted with a revised application on April 30, and accepted on May 28, but regulators required supplementary materials and temporarily suspended the review. On August 18, the STB restarted the process, and the transaction remains in the regulatory review phase.