The proposed merger between Union Pacific (UP) and Norfolk Southern (NS) represents a once-in-a-generation opportunity to reshape American freight -- and good governance requires both scrutiny and momentum as the Surface Transportation Board (STB) completes its review. The purpose of the STB is to ensure that the merger satisfies the two-pronged test: that the transaction enhances competition and serves the public interest. As this process continues, the focus must remain on regulatory review and not become an obstacle to economic freedom.
America’s economic strength depends on regulators who understand that markets, not bureaucratic delay, are the primary drivers of growth. The STB's request for additional information is a routine procedural step, not a verdict - and it should not obscure the broader case for what this merger would mean for America's economic strength.
A merger between UP and NS solidifies the unification of two of America’s important rail companies, seamlessly connecting the East and West Coast. This partnership creates a tangible roadmap for transforming the U.S. supply chain, unleashing the strength of American manufacturing, and creating new sources of economic growth and workforce opportunity. Norfolk Southern and Union Pacific are already each other’s most frequent partners, making this a natural and economical next step that will also reduce the time to move goods from one half of the country to the other.
These are definitive strengths for the argument that it serves the public interest. This merger would eliminate problematic interchange points, leading to faster, more efficient transit times. Trains can be stocked longer and higher, making each trip more meaningful. While the cut in shipping time will pay dividends for shippers, consumers will also benefit from lower shelf prices and quicker shipping times.
With heightened efficiency, a full realization of U.S. manufacturing strength is sure to follow. An investment in American rail is an investment in American communities. Economies along the railroad network will thrive like never before, as the creation of added jobs like train crew, mechanical, and engineering will lead to more steady employment. With greater job stability and access, these growing communities can become new manufacturing centers.
The second key prong of merger approval is whether it enhances competition. Primarily, the merger between UP and NS creates a rail network capable of competing with the existing Canadian transcontinental networks. The scale is massive, with over 50,000 route miles across 43 states. This creates direct competition with Canadian rail giants Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC). A transcontinental U.S. railroad of this scale can effectively work to win back U.S. freight volume and American jobs.
Furthermore, a transcontinental railroad establishes itself as a better alternative and more competitive option to win freight back from the trucking industry. There are plenty of upsides to this situation: taking trucks off the roads will ease congestion and reduce public infrastructure costs, saving billions of dollars in maintenance down the line. Rail is also significantly more fuel-efficient compared to trucking. This merger can redefine long-haul service, permanently shifting the landscape away from trucking. Ultimately, the proposed merger between UP and NS offers a unique opportunity to enhance competitiveness, increase reliability, and spur a renewed investment in long-term American rail networks.
As the review continues and more information is obtained, the board should, with an open mind, consider the multitude of ways the merger between Union Pacific and Norfolk Southern will serve the American public interest and increase competitiveness in North America and globally. Strong regulation can coexist with economic freedom, but I urge the Surface Transportation Board to complete the next stage of its review expeditiously as companies refile their applications to join together formally. The future of America relies upon innovation, and this must be reflected in the decisions that our regulators make.
Andrew Langer is the Director of CPAC Foundation’s Center for Regulatory Freedom and President of the Institute for Liberty.
