Railroad Merger to Create America’s First Transcontinental Railroad 

Railroads have been an integral part of building America since the Industrial Revolution, and this transaction is the next step in advancing the industry.

Jim Vena, Union Pacific Chief Executive Officer, on the railroad’s plans to acquire competitor Norfolk Southern in an $85 billion deal.

Why It Matters: The deal still needs federal approval, but if it goes through, it would mark the largest merger in the sector’s history – creating America’s very first coast-to-coast railroad operated by a single company. 

According to Edward Jones analyst Jeff Windau, the merger could lower costs with more efficient shipments – ultimately benefitting consumers. However, he added, “there is that potential that there’s going to be some service disruptions.”

Meanwhile, some unions are concerned about rate hikes, job loss and overall service disruptions. “This merger is not good for labor, the rail shipper/customer or the public at large,” said Jeremy Ferguson, president of the SMART-TD union’s transport division, which represents over 1,800 railroad yardmasters. 

Learn More:

• Union Pacific and Norfolk Southern to Create America’s First Transcontinental Railroad (Union Pacific) 
• Union Pacific to buy Norfolk in $85-billion mega US railroad deal (Reuters) 

Photo Credit: Union Pacific