Although Norfolk Southern Corporation (NSC) shares opened higher on the U.S. stock market Thursday after the railroad company confirmed it is in “advanced discussions” with Union Pacific (UP) about a possible merger, the shares of both companies fell.

NSC stock opened at $284.07 per share and is now trading at $279.50 per share. UP stock opened at $234.04 per share and continues to decline, currently trading at $224.52 per share.

This Thursday morning, both railway companies confirmed that they are engaged in “advanced discussions”  regarding a possible business combination.

“There can be no assurance that a transaction agreement will be reached, nor can there be any assurance as to the terms of such an agreement,” they stated in a brief joint statement.

Likewise, UP and NSC stated that they will not comment further or provide an update on this matter “unless they determine that disclosure is necessary or otherwise appropriate.”

Union Pacific operates more than 51,000 kilometers of track in 23 states , from major ports on the West Coast and the Gulf Coast to the gateways of the eastern United States, connecting with the rail systems of Canada and six major gateways to Mexico.

From 2015 to 2024, it invested approximately $34 billion in its network and operations to improve U.S. transportation infrastructure.

Together with Canadian National and Grupo México Transportes (GMXT) —UP owns a 26% stake in Ferromex —they provide direct intermodal service between points in Mexico and Canada via Eagle Pass and Chicago. They move segments including grain, beer, automotive, appliances, metals, coal, and finished fuels, among others.

Meanwhile, NCS spans nearly 32,000 kilometers across 22 states in the northern US , connecting 800 industrial sites, 175 warehouses, and 43 ports. It has 22,000 employees and has invested $1.5 billion in infrastructure such as locomotives, freight cars, tracks, and bridges in just one year.

In 2024, the railroad announced, together with Florida East Coast Railway (FEC) , the expansion of its international and domestic interline services . The Florida Express service creates a two-way transportation solution for customers moving freight between South Florida and Charlotte, North Carolina.

It is worth remembering that the last merger between Class I railroads in the United States took place between Canadian Pacific and Kansas City Southern, which was completed in 2023, thus creating Canadian Pacific Kansas City (CPKC) .

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Union Pacific (UP) has opened its new intermodal terminal in Kansas City , Kansas, providing customers in growing Midwestern markets with easy access to its 23-state network, including seaports on the West Coast and the Gulf of Mexico.

Improvements to this new facility include a 30% increase in overall lift capacity, superior road access, additional work lanes for maximum efficiency , and automation with precision door technology.

It will also handle domestic and international container shipments of grains, consumer goods, refrigerated products, and pet food.

The Kansas City terminal is the fourth new intermodal ramp Union Pacific has built in recent years, as part of its commitment to expanding intermodal access across its rail network. It will also help convert more truck traffic to rail, reduce congestion on the nation’s highways, and reduce greenhouse gas emissions.

“We are excited to offer shippers and receivers a centralized location to meet the growing shipping demands in the Midwest. The terminal will provide shippers with convenient and cost-effective access to our 32,000-mile network, with the ability to reach Mexico, Canada, and overseas markets,” said Kenny Rocker, UP’s executive vice president of Marketing and Sales.

The new unit will include the company’s PGT gate system, which scans an operator’s equipment and speeds up the gate process, allowing carriers to quickly enter and exit the ramp.

It will also feature international and domestic container stacking operations, two new paved parking lots, and additional work lanes for maximum efficiency.

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As part of a border security initiative, Union Pacific (UP) tested a new interchange process that allows Mexico-based crews to travel a short distance to the United States to deliver and receive trains at its Eagle Pass, Texas, yard.

“This new crew change location improves safety by reducing the amount of time trains are stopped on the single-track bridge,” said Rick Lichtas, the railroad’s assistant vice president of Network and Capital Planning.

Additionally, he noted that it also improves the fluidity of the exchange process , “which makes our service product more competitive.

The new exchange was requested by U.S. Customs and Border Protection (CBP) as part of the federal government’s Safe Corridor Initiative .

He said the new process would align Eagle Pass with other U.S. border crossings , where this is already common practice, including along the northern border with Canada and the southern border in Laredo, Texas.

Currently in Eagle Pass, crew changes take place on the single-track border rail bridge. Trains come to a complete stop so the crew can disembark and walk back to their side of the border. For security reasons, the train cannot continue until the crew clears the bridge and CBP confirms it is safe to proceed through x-ray scanners. This process can take 30 to 40 minutes , increasing the risk of blocked crossings, theft, and vandalism.

During the recent pilot test, a Ferromex crew operated a northbound train from the bridge to the nearest UP rail yard, located seven miles across the border. At this point, CBP officers met with the crew and reviewed their documentation. The crew then boarded a southbound train and returned to their nearest yard in Mexico.

This process was monitored and controlled at the Bilingual Command Center located at the Eagle Pass depot. The participating crews were trained by the railroad and certified under the Federal Railroad Administration rules for the territory in which they operate.

With the pilot successfully completed, Union Pacific is now working to finalize agreements with Ferromex and CBP . Union Pacific crews will continue to be responsible for taking control of trains from across the border, building outbound trains, and operating local service.

“Seamless border transfers improve the rail industry’s ability to compete and remove trucks from the road. Customers on both sides of the U.S.-Mexico border will benefit from enhanced security,” Lichtas said.

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The American railroad Union Pacific (UP) announced that it has carried out a strategic restructuring of its team in Mexico, appointing Jason Steele as Senior AVP for Automotive and Mexico, and Ashanti Mieres as general manager and country manager .

“Mexico is a key market for Union Pacific, and we are confident that this transformation will allow us to better serve them and create opportunities to foster joint growth,” said Kenny Rocker, executive vice president of Marketing and Sales.

In a statement, the company stated that Jason Steele has more than 25 years of experience in rail and cross-border operations and will bring deep knowledge of the Mexican market and a strong track record of creating customer-centric solutions.

“His leadership will be critical to driving innovation and ensuring our customers in Mexico receive the highest level of support and care,” he said.

Ashanti Mieres will be based in Mexico City and will focus on strategic initiatives and product development .

He indicated that the sales team will report directly to each business unit in Bulk, Industrial, and Premium, an initiative designed to ensure greater cross-border alignment and coordination within its structure to serve the Mexican market.

In 2024, the Mexican business unit contributed approximately 11% of the railroad’s total operating volume. It handled 897 rail units, of which 56% was concentrated in the premium (automotive) sector, 24% in bulk cargo, and 20% in industrial cargo.

UP offers its Eagle Premium intermodal service to the country , an operation that is carried out six days a week in conjunction with Grupo México Transporte (GMXT) , through its subsidiary Ferromex, on routes from Monterrey, Silao and Mexico City to/from Chicago, from Monterrey and Silao to/from Memphis and Monterrey and Silao to Los Angeles, Northern California and Seattle.

While the Falcon Premium with Canadian National and GMXT from Mexico and Canada via Eagle Pass and Chicago.

Likewise with Canadian Pacific Kansas City (CPKC) the San Luis Potosí, Toluca and Monterrey routes to/from Chicago and the interline service to/from Canada and the eastern United States through Chicago, to name a few.

The railroad transports products such as grains, beer, automotive products, household appliances, metals, coal, and finished fuels, among others, between the United States and Mexico.

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