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

Why is Union Pacific combining with Norfolk Southern?

Some stakeholders have expressed concern that the combined connection could reduce competition or lead to monopoly concerns in certain markets. Based on today’s network footprints, UP and NS have limited overlapping routes, so the transaction is not intended to reduce rail to rail competition in most lanes. The STB will independently test that conclusion and can impose conditionsor remedies if needed.

Will shippers have fewer carrier options?

The proposal is intended to maintain current carrier options while adding a new single line routing alternative for certain long haul freight movements. As part of its competitive analysis, the STB will evaluate how the transaction could affect shipper options in specific corridors and may require measures to protect or enhance customer choice.

How is competitive impact assessed?

Under federal law and STB regulations, major rail combinations must be shown to be consistent with the public interest, which includes a detailed assessment of competition, service, safety and environmental impacts. Applicants must provide full system competitive analyses, and the Board may require conditions that preserve or enhance competition where appropriate.

What markets could benefit from new service options?

Potential opportunities include West Coast–Midwest–Southeast freight corridors that currently require multiple interchanges, particularly for intermodal and certain carload traffic. Specific service enhancements, routes and any competitive conditions will be defined through the STB review and authorization process.

Where can I learn more about the proposal?

More detailed information is outlined in our STB application, available on our STB Hub page.

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.

Stay Informed

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

Learn More at the STB Hub