Understanding Competition, Choice and Oversight in the Proposed Transcontinental Connection

Does the Union Pacific–Norfolk Southern ConnectionReduce Competition?

The proposed UP–NS transcontinental connection is not structured to create a monopoly railroad; it is an end-to-end combination of two largely complementary networks and will undergo full review by the Surface Transportation Board (STB), including an assessment of any monopoly concerns or risk of reduced competition. Union Pacific and Norfolk Southern primarily operate in different regions today, and federal regulators will independently evaluate how the transaction could affect competition,service and customer choice.

What We Are Proposing

Union Pacific and Norfolk Southern are seeking regulatory approval to link two railroads that predominantly serve different parts of the country — UP primarily in the West, NS primarily in the East. The goal is to offer customers a new single line option for transcontinental freight service while maintaining the interchange connections and rail choices that exist today, subject to any conditions the STB may impose.

How the Proposal Affects Rail to Rail Competition

End to end structure: The transaction is proposed as an end-to-endcombination and is not designed to eliminate an existing rail-to-rail competitor inmost markets.
Existing options maintained: Other Class I railroads are expected to continue serving their current markets through established interchange points, subject to STB review and any conditions the Board may impose, so customer choices available today are expected to remain available after closing.
New single line option: The combined network would create an additional single line routing option in key West Coast–Midwest–Southeast corridors where shippers today often rely on multiple carriers and handoffs.
Potential efficiency gains: Reducing interchanges between carriers can improve network efficiency and service reliability for long distance freight movements, which the STB will consider as part of its public interest review.

Frequently Asked Questions

Our Commitment

This proposal is intended to connect two complementary rail networks, expand single line service and support a resilient, competitive freight rail system for shippers and communities. The STB will conduct a full, independent review of all competitive aspects and any monopoly concerns, and Union Pacific and Norfolk Southern are committed to working transparently and constructively throughout that process.

Our Commitment

Updates on the proposed transaction and Surface Transportation Board review will beshared as the process continues.

Learn More at the STB Hub