Proposed Norfolk Southern-Union Pacific Merger Goes Off the Rails

The Surface Transportation Board rejects the proposed Norfolk Southern–Union Pacific merger, prompting concerns from agricultural shippers about rail consolidation, service reliability, and higher transportation costs.

NASHVILLE, TENN. (RFD NEWS) — New details on the proposed rail merger between Norfolk Southern and Union Pacific. The Surface Transportation Board (STB) has rejected the initial application, citing missing key information.

The STB says the decision does not mean the merger is impossible. Both companies now have the opportunity to revise and resubmit their application. The initial paperwork was more than 6500 pages long. The STB says details on market share were missing, along with other contractual information.

Groups like the Soy Transportation Coalition (STC) have been watching the process since the merger was proposed. In a recent interview with RFD NEWS, STC Executive Director Mike Steenhoek says there are concerns across the ag spectrum about consolidation if that merger goes through.

“People point to the fact that this is not our first rodeo — we’ve had mergers, acquisitions, and consolidations within the rail industry for a number of decades,” Steenhoek explains. “What that does is it often results in higher rates, a decline in service, and, for agriculture and other industries, what you want is as many transportation providers competing for your business. That’s good for us, and when, all of a sudden, you start eliminating or reducing those transportation providers, you start changing that competitive balance away from the customer, agricultural shippers, in our case, or the railroad. So rightfully, there are a number of shippers who are very concerned about this.”

Leaders at Union Pacific say they have received more than 2,000 letters of support for the merger. STB says that while the application can be resubmitted, it will require another comprehensive review.

Related Stories
The Cotton-4 are pushing hard for new value chain investments. Still, many U.S. cotton producers face unsustainable losses, and weakened regional textile capacity threatens the survival of the Carolina “dirt-to-shirt” supply chain.
Cargill’s commitment to keep plants open helps preserve competition as Tyson removes capacity amid historically tight cattle supplies.
Tryston Beyrer, Crop Nutrition Lead at The Mosaic Company, examines planning trends as producers weigh corn and soybean plantings for 2026.
Brooks York with AgriSompo joins us to offer an update on what agents are prioritizing as the calendar year winds down.
The newly elected Executive Vice President of the Tennessee Cattlemen’s Association (TCA), Dale Parker, joins us on-set to share his vision for his state’s cattle industry.
Despite the need for swift action, many ag lawmakers and industry groups argue that farm aid alone will likely not be sufficient to help farmers without improved trade relations with China.

Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

LATEST STORIES BY THIS AUTHOR:

Team Kubota’s Nick Hatfield joins us to talk about the Summit Cup — the fourth and final event in Major League Fishing’s Fishing Clash Team Series presented by Bass Pro Shops.
If the House concurs and the President signs, USDA services and farm-bill programs resume at full speed with authorities extended for another year.
Kate Walker has the story, highlighting how students are learning to protect and preserve natural resources while gaining valuable technical and teamwork skills.
The Summit Cup is the fourth and final event in the Major League Fishing Team Series. Catch the action live on RFD-TV, starting on Sunday, November 16.
Experts highlight the importance of monitoring insecticide resistance in crops and improving disease traceability at livestock shows through RFID technology.
Lewie Pugh, with the Owner-Operator Independent Drivers Association, joined us on Monday’s Market Day Report to share his perspective on what the bill could mean for truckers.