Three Railroads Urge Rejection of Union Pacific-Norfolk Southern Merger or Conditions
Key Facts
Three major railroads have asked the U.S. Surface Transportation Board to reject the merger of Union Pacific and Norfolk Southern, saying they would seek conditions if the board approves the deal, according to a FreightWaves report published on September 14, 2026. The position puts access rights to the two networks at the center of the review, after rival companies made broad requests to use the two railroads’ lines. There is no evidence that the companies’ CEOs personally rejected those requests; Norfolk Southern said it would respond to issues raised by rivals in the procedural record. Union Pacific described their demands as doing nothing to strengthen the U.S. supply chain or help consumers. The board reviewing the application will decide on the deal and any conditions.
Among the main requests cited in the report, BNSF is seeking trackage rights over 824 miles of Norfolk Southern lines between Chicago and container terminals in eastern Pennsylvania. CSX said it would seek access to Kansas City via Union Pacific’s line between St. Louis and Kansas City, along with access to eastern Pennsylvania and Virginia’s port terminal. The three companies said they were urging the board to reject the merger outright, while preparing to seek conditions if it proceeds with approval. The proposals show that the dispute is not limited to objections to creating a larger entity, but also extends to how rivals would use routes after the deal. The report did not say the board had approved or rejected the access requests.
Norfolk Southern, meanwhile, said the deal could shift about 2.1 million truckloads a year from roads to rail, with shipper savings potentially reaching 3.5 billion dollars and being passed on to consumers. The company tied these figures to the expected benefits of combining the two networks and presented them in its response to issues raised by rivals. It also said the deal could create about 1,200 new union jobs. In response to rivals’ concerns about access to the lines, the company has set out its estimates for freight diversion, costs and jobs. These figures remain company estimates, not results achieved after completion of the merger.
The board accepted the revised merger application for review on May 28, 2026, but temporarily paused proceedings and asked the companies to provide additional information by July 27. On September 18, the board rejected requests from BNSF, CSX and a coalition of shipper associations to dismiss the revised application without a review. The board said allowing the procedural record to continue did not constitute a judgment on the merits of the deal, and that parties could renew their arguments in comments. The rejection of the dismissal requests therefore did not settle the board’s position on the merger, while rivals’ demands remained part of the regulatory debate. If approved, the merged company would operate as Union Pacific on a network of nearly 50,000 miles spanning 43 U.S. states.
The next steps set a timeline extending into 2027: comments on the merger application are due by November 18, 2026, followed by replies on February 16, 2027. Union Pacific and Norfolk Southern said they expect to complete the deal in the second half of 2027, subject to board approval. The announced regulatory deadlines therefore precede the expected completion date, with comments and replies remaining part of the process before board approval. In the stock market, Norfolk Southern shares closed at 338.23 dollars and Union Pacific shares at 298.09 dollars on October 22, 2026. The figures provided do not include a comparison with the previous session or the trading range during the day.