Path to Approval: The Surface Transportation Board
Download PDFUnion Pacific and Norfolk Southern are moving through the Surface Transportation Board’s (STB) review process to create America’s first transcontinental railroad. This combination will strengthen America’s supply chain, unleash the power of U.S. manufacturing, and open new opportunities for growth, jobs and communities. It’s a win for customers, workers and the economy.
What is the STB?
The STB is an independent federal agency created in 1996 to oversee the business side of freight rail. It alone has the authority to approve major U.S. rail transactions, drawing on its deep knowledge of the domestic rail system and its broad impact on the country. When reviewing company combinations, it looks at rail rates and services as well as new line construction or closures — ultimately deciding whether the combination serves the public interest.
Why the Transaction Benefits Everyone
The combined transcontinental railroad brings important advantages:
More Competition
Stronger coast-to-coast service gives shippers a better option than trucks, at lower cost and with greater efficiency.
Lowering Costs
Faster, more reliable rail service reduces supply chain costs for businesses and consumers.
Competing Globally
A stronger U.S. network will better compete with Canadian railroads, reclaim freight volume and support American jobs.
Innovation
A unified network encourages technology breakthroughs, keeping U.S. freight rail safe and globally competitive.
Roles of Other Agencies
The Federal Railroad Administration works with applicants on a Safety Integration Plan to ensure safe operations. The Departments of Justice and Transportation, along with the Federal Trade Commission, can provide input to the STB.
Next Steps
Union Pacific and Norfolk Southern filed a formal application with the STB on Dec.19, 2025. The filing explains how the combined network will deliver safer, faster, more reliable service and stronger competition for shippers, benefiting all stakeholders. The full STB regulatory review process spans multiple phases over 19-22 months.1 The goal is to complete the transaction by early 2027.
With little overlap in our networks and the broad benefits this combination will unlock, our application will demonstrate to the STB that the Union Pacific Transcontinental Railroad strengthens service, lowers costs, reduces transit times and boosts competition across the U.S. transportation system.
1. “Frequently Asked Questions: Major Railroad Mergers,” Surface Transportation Board, accessed Aug. 25, 2025.
2. "STB Major Railroad Mergers Timeline,” Surface Transportation Board, accessed Aug. 25, 2025.