Faster, More Reliable Shipping for America’s Farmers

Short line railroads provide the critical first and last mile of America’s freight network. They connect farms, factories, grain elevators and small manufacturers to the national rail network — and through it, to markets across the country and around the world. For decades, that connection has been limited by an artificial divide running down the middle of the country, forcing freight to change hands between eastern and western carriers at congested gateway cities. Every handoff adds cost and complexity that short lines and their customers absorb.

The combination will remove that barrier. For short line partners and the communities and local businesses they serve, that means access to routes, customers and markets that may not have ever been reachable by single-line rail service before.

88,000

New county-to-county lanes eligible for single-line service — 41,000 within Watershed markets

105K

Carloads of merchandise traffic are projected to convert from road to rail in Watershed markets — Oliver Wyman

500M

Tons of goods originate or terminate within 250 miles of
the East-West gateways — currently underserved by rail

Reliable service farmers can count on

Farmers, processors and exporters depend on consistent access to elevators, feed mills and ports. Unfortunately, today’s fragmented rail network often adds time and cost to the supply chain. A seamless, single-line network will reduce handoffs between railroads and improve reliability – especially during critical harvest windows. That reliability will support better pricing, stronger market access and more predictable outcomes.

Faster, more efficient service

The Union Pacific and Norfolk Southern combination will convert 10,000 existing lanes from less efficient interline service – requiring handoffs between railroads – into faster, more efficient single-line routes. It will also open 88,000 new county-to-county lanes, expanding opportunities for freight that currently moves by truck to move by rail.

More routes to more markets

A more connected network will also expand market reach across key agricultural commodities. Single-line access to ports on the East Coast, West Coast and Gulf will create faster, more reliable routes for soybean meal moving from western crush plants to eastern feed and export markets, grain and wheat shipments from inland elevators to Gulf Coast terminals, and corn and feed grains moving from Midwest farm states to Southeast feed mills and East Coast poultry and livestock operations.

With 1.88 million U.S. farms and more than 8,000 off-farm grain elevators — including 820 elevators in Iowa alone — reducing delays and expanding routing flexibility matters at scale. The combined network’s coast-to-coast reach also will open new opportunities for ethanol, renewable diesel and clean fuel projects.

Enhanced American competitiveness

Expanded port access will give U.S. agriculture faster, more reliable connections to global markets and increase export effectiveness. Shorter transit times and fewer delays will lower total delivered costs, helping American products compete – and win – in global markets.

More flexibility when markets shift

Agriculture changes quickly. Weather, markets and global events can shift overnight. A unified network spanning 50,000 route miles across 43 states, connecting nearly 100 ports on both coasts and the Gulf, will give farmers and co-ops more options to adapt and stay competitive.

Lower total transportation costs

A single-line transcontinental network will compete more effectively with long-haul trucking, shifting an estimated 2.1 million truckloads from road to rail each year and putting downward pressure on total transportation costs. More options, more competition and better results.

Rates, routing and competition

The combination will strengthen competition by expanding routing options and reinforcing competitive alternatives – ultimately giving customers greater choice and flexibility across the network.

“Farmers depend on efficient rail service to get their crops to market and their inputs delivered on time. By uniting these rail networks, Union Pacific and Norfolk Southern are taking a logical step to improve agricultural logistics. We expect to see faster grain shipments, fewer delays and better rail access.”

KC Graner

President and CEO of Central Farm Service

FAQ

How will this merger increase competition and reduce transportation costs?

The merger is designed to increase real-world competition, especially with long-haul trucking, which is often the primary alternative for agricultural shipments today. Creating faster, more efficient single-line rail service will lower total transportation costs and put downward pressure on pricing across the system.

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Many farmers and grain facilities are served by only one railroad today. What will this merger mean for them?

This combination will expand access. A unified network will give more shippers single-line service to more destinations – processors, ports and markets – reducing reliance on inefficient handoffs and improving practical reach.

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How will the combined railroad preserve service reliability?

This merger will bring together two strong, well-run railroads and is being planned with modern technology and detailed operational modeling. The combination is designed to reduce delays, expand single-line service and improve transit consistency across key freight corridors. Because this is an end-to-end combination with complementary networks, most traffic will continue to move as it does today, while key improvements will create a more connected network that will reduce the risk of delays.

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How will this impact access to gateways?

Union Pacific and Norfolk Southern have committed that the combined railroad will maintain open gateways and fair access. At the same time, many shipments will benefit from single-line service, which reduces delays and improves reliability while still preserving competitive options where they exist.

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Frequently Asked Questions

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Make Your Voice Heard

More than 2,000 businesses, unions, farmers and community leaders have already told the Surface Transportation Board why this combination matters. Tell Congress why America’s first transcontinental railroad matters for American jobs, supply chains and economic growth.

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Benefits described are intended and proposed, subject to STB review and approval.
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Please review Union Pacific’s cautionary note regarding forward-looking statements.