Dec. 29 at 8:59 PM
Union Pacific and Norfolk Southern are seeking regulatory approval for a merger they say would strengthen freight competition by giving shippers a viable rail alternative to trucking. The combined railroad argues it could shift up to two million truckloads a year to rail, reducing pollution, highway congestion, and accidents, particularly in the Mississippi basin.
The companies note that railroads have lost significant market share to trucks over the past decade, with trucking dominating much of the freight market due to inefficient rail handoffs. By creating a seamless coast-to-coast network, the merger aims to make rail service more competitive and recover lost volume from trucking.
Financially, the deal is projected to generate about
$2 billion in additional annual revenue, deliver
$1 billion in operating cost savings, and cut capital spending, while maintaining existing rail yards and protecting current jobs during the regulatory review process.
$UNP $NSC