WASHINGTON, D.C. (RFD NEWS) — The Surface Transportation Board has accepted the revised merger application from Union Pacific and Norfolk Southern for consideration, but is requiring additional information before moving the process forward.
In a unanimous decision released Thursday, the Board said the railroads provided enough information to satisfy initial completeness requirements after revising the application in April.
The proposed merger between Union Pacific and Norfolk Southern would create the nation’s first transcontinental railroad connecting the East and West coasts under a single carrier. Union Pacific and Norfolk Southern say the combination would connect more than 50,000 route miles across the western and eastern United States.
However, regulators said several portions of the proposal remain unclear or underdeveloped and ordered supplemental information to be submitted by July 27.
The case, including the environmental review, will remain in abeyance until the Board reviews the additional material. Discovery in the case will continue during that time.
The Board said it needs additional detail on competition impacts, market share projections, service assurance plans, downstream merger effects, passenger rail operations, and potential impacts on shippers and communities.
The agency also confirmed that an Environmental Impact Statement will be prepared as part of the review under the National Environmental Policy Act. The Board plans to hold at least 12 in-person public meetings, along with several virtual meetings, during the environmental review process.
As the federal review expands, additional state and regional organizations are now formally joining the case.
New filings submitted to the Surface Transportation Board show both the Mississippi Department of Transportation and the North Texas Commission have filed notices of intent to participate as parties of record in the proceeding overseeing Union Pacific’s proposed control of Norfolk Southern.
The Mississippi Department of Transportation filed its notice on May 28, with Director of Aeronautics and Rails Division Josh Stubbs stating the agency intends to participate in the case.
Separately, the North Texas Commission also submitted its notice of intent to participate. The filing was signed by President and CEO Chris Wallace.
Both organizations certified that copies of their filings were served to federal transportation officials, the U.S. Attorney General, administrative law officials, and all parties already involved in the case.
Supporters, including the railroads, argue the merger could streamline freight movement, reduce shipping delays, and strengthen supply chains for industries including agriculture, energy, manufacturing, and retail. The companies say freight could move across the country on a single rail network instead of transferring between carriers at interchange points.
However, the proposal is also drawing scrutiny from regulators, shipping groups, labor organizations, ports, and local governments concerned about competition, rail rates, service reliability, and potential impacts on communities along rail corridors.
Agriculture groups are closely watching the merger because rail service remains critical for moving grain, fertilizer, ethanol, livestock feed, and other commodities throughout the country and to export terminals.
The Surface Transportation Board is expected to conduct a lengthy review that could include economic analysis, public comments, hearings, and environmental evaluations before any final decision is made on the merger proposal.
