Union Pacific And Norfolk Southern Announce Historic Merger To Create America’s First Transcontinental Railroad

Omaha, Nebraska & Atlanta, Georgia | July 29, 2025: In a landmark agreement set to reshape the American supply chain, Union Pacific and Norfolk Southern today announced their intent to merge, creating the nation’s first true transcontinental railroad. This ambitious combination, which will span over 50,000 miles, serve 43 states, link approximately 100 ports, and reach nearly every corner of North America, promises to usher in a new era of innovation and industrial strength for the United States.

Union Pacific CEO Jim Vena and Norfolk Southern CEO Mark George lauded the agreement as the “next step” in their collective “Safety, Service and Operational Excellence” strategy. They envision the combined entity transforming America’s supply chain, fundamentally changing how freight moves, and spurring new economic growth.

The impact of this proposed merger is anticipated to be profound. A single coast-to-coast network is expected to deliver faster, more competitive service by eliminating “car touches” and interchange delays, opening new routes, expanding intermodal services, and ensuring significantly faster transit times on key rail corridors. The companies highlighted environmental benefits as well, projecting that the unified network will take even more trucks off highways, thereby decreasing congestion and reducing wear-and-tear on taxpayer-funded roads.

The joint statement painted a vivid picture of the future, imagining seamless freight hauling from Pittsburgh, Pennsylvania, to Colton, California, and efficient movement of diverse goods such as tomato paste from Heron, California, to Fremont, Ohio; lumber from the Pacific Northwest; plastics from the Gulf Coast; copper from Arizona and Utah; and soda ash from Wyoming. The merger will unite the efforts of over 40,000 Union Pacific and Norfolk Southern union employees who currently transport essential goods daily.

Both CEOs expressed a commitment to their workforce. “It is our expectation that the combination will lead to job growth and it is our intention to preserve Union Pacific and Norfolk Southern union jobs,” the statement affirmed.

Jim Vena, a lifelong railroader who began his career as a union brakeman and rose through the ranks to become CEO of Union Pacific, directly addressed Norfolk Southern employees. “I have been a railroader my entire life – working my way up from union brakeman to conductor, to locomotive engineer, trainmaster and superintendent,” Vena stated, emphasizing his understanding of the sacrifices and tough decisions inherent in railroading. “You can count on me to be honest, frank and thoughtful. That’s who I am. I will ask a lot of you, and I will demand even more from myself. I respect and value your legacy and contributions.”

He further underscored the historical significance of the merger, asserting that “there is no better combination of railroads to finalize President Abraham Lincoln’s original vision to create a transcontinental railroad.”

Norfolk Southern, known as the “Thoroughbreds,” brings a rich history dating back to 1827, making it 35 years older than Union Pacific. CEO Mark George, who was appointed to his current role in 2024 after serving as EVP and CFO, has been instrumental in the company’s strong performance trajectory.

The path to realizing this vision, however, will involve significant regulatory hurdles. The companies announced that they will submit a formal merger application to the Surface Transportation Board (STB) in the coming months. The STB, which has exclusive jurisdiction over railroad mergers, will review the application under stringent rules established in 2001, which require the merging parties to demonstrate that the combination will enhance competition and serve the public interest. While the STB review is underway, Union Pacific and Norfolk Southern will continue to operate as separate companies, and employees are strictly mandated to adhere to antitrust guidance rules.

The last major Class I rail merger, Canadian Pacific’s acquisition of Kansas City Southern, took approximately 18 months for STB approval, even under different regulatory conditions, suggesting a potentially lengthy process for this unprecedented tie-up.

Union Pacific and Norfolk Southern are targeting the closing of the transaction by early 2027. The agreement values Norfolk Southern at an enterprise value of $85 billion, representing a 25% premium to its unaffected stock price. The combined entity is projected to have revenues of approximately $36 billion based on 2024 results and unlock an estimated $2.75 billion in annualized synergies.

Both CEOs urged employees to remain focused on safety, service, and operational excellence during this transitional period. Union Pacific CEO Jim Vena and Norfolk Southern CEO Mark George are expected to provide further details on the merger during appearances on CNBC at 10 a.m. ET/9 a.m. CT and Fox Business at 3 p.m. ET/2 p.m. CT today.

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