BNSF Railway reiterated that the merger between Union Pacific (UP) and Norfolk Southern (NS) presents serious risks to competition, service and the supply chain .

According to Tom G. Williams, executive vice president and chief marketing officer of BNSF Railway, he noted the above after reviewing the merger application that the companies submitted to the United States Land Transportation Board (STB) on December 19, 2025.

In a letter sent to its customers, it mentioned that the growth promises presented by the companies are unrealistic , since the combined volumes of UP and NS alone have decreased by 13% in the last decade.

However, the first one promises 12% growth in just three years, almost entirely thanks to the conversion of truck carriers to rail carriers.

“STB statistics show that UP already earns more revenue from higher fares than any other Class I railroad. When this growth in truck conversion doesn’t materialize, you’ll pay for their merger premiums with higher fares. The protections proposed by UP are a Trojan horse designed to get their application approved,” he emphasized.

Regarding the Gateway Tariff Commitment proposed by UP, he considered that it excludes almost all shippers . Only 0.4% of all rail freight transport would be eligible. Furthermore, it expires in a few years, “leaving you vulnerable to monopoly pricing.”

Williams also indicated that integration risks exist due to UP and NS’s “trust us” approach, which does not offer fundamental safeguards against serious supply chain disruptions on a much larger scale.

“The last time UP led a merger integration in 2008, the STB had to extend its oversight period twice due to the congestion problems it caused in Chicago,” he recalled.

He noted that the UP-NS merger request cites more than two thousand letters of support , including some 500 from shippers, representing less than 6% of all traffic on the U.S. rail network.

In contrast, the Rail Customers Coalition—which represents carriers of more than half of all rail freight volume—has stated that the merger would create near-monopoly power , increasing costs for manufacturers, farmers, energy producers, and ultimately, consumers. Similarly, the Teamsters Rail Conference and the Brotherhood of Railroad Signalmen , which together represent more than half of all rail workers, warn that the merger would reduce competitiveness and increase safety risks.

“These numbers matter. The voices opposing the merger represent the vast majority of customers and rail workers who interact with UP and NS on a daily basis. As more stakeholders review the application, opposition is growing. The application is so lacking in substance that several key players have already asked the STB to reject it as incomplete. When the STB finally accepts the application as complete, it will publish a timetable that will include a short comment period. This will be your opportunity to raise your voice and protect your interests,” he stated.

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US railroads Norfolk Southern Corporation (NSC) and Union Pacific (UP) announced that their shareholders voted with more than 95% in favor to carry out their merger.

UP stated that 99.5% of the votes cast by its shareholders were in favor of issuing new common shares in connection with its merger with NSC.

“Our shareholders see the value and understand that this merger will unlock new opportunities to improve service, growth, and innovation. We look forward to submitting our application to the Surface Transportation Board (STB) and detailing how the transaction will provide seamless, single-line service nationwide to improve transit times, safely increase reliability, and strengthen competitiveness,” said Jim Vena, CEO of Union Pacific.

He indicated that the preliminary vote count from the special shareholders’ meeting represented almost 80% of all outstanding shares.

Meanwhile, the NSC stated that shareholders voted almost 99% in favor to approve its previously announced transaction.

“Our shareholders’ approval marks a key milestone in our journey to create America’s first transcontinental coast-to-coast railroad, combining complementary networks and capabilities to unlock a multiplier effect of benefits for all stakeholders,” said Mark George, president and CEO of Norfolk Southern.

He reiterated that the merger will preserve union jobs and improve safety while offering faster and more reliable transit times, and will also provide customers with new and “more attractive” shipping alternatives, unleashing the industrial strength of American manufacturing and creating new sources of economic growth across the country.

Under the terms of the agreement, NSC shareholders will receive 1.0 share of UP common stock and $88.82 in cash for each share of the other railroad. The transaction is expected to close in early 2027.

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Keith Creel, president and CEO of the railway company, highlighted that through its network and unique partnerships, they are providing a solid service as well as innovative solutions to the market.

“CPKC once again created profitable and sustainable growth in the third quarter, while navigating challenging macroeconomic conditions,” Creel said.

“We are maintaining a continued trend of differentiated performance in our automotive franchise with another record quarter. We strengthened our bulk cargo franchise with strong growth in both grains and potash, and had another strong quarter in intermodal growth, both domestic and international, which included a significant milestone we have discussed previously: the opening of Americold ’s new facility at our Kansas City terminal. This is the first of several facilities,” he stated.

The railway company saw a 3% increase in revenue, rising from 3.549 billion Canadian dollars to 3.661 billion Canadian dollars .

Mark Redd, executive vice president and chief operating officer, mentioned that in the third quarter there were improvements in terminal dwell time, speed improved by 1%, and train length and weight by 2% . “We saw CP’s legacy network operate at record levels of productivity and railcar speed, while KCS’s network reached its highest performance levels to date.”

“Looking ahead, we expect to have more than 70 additional locomotives by 2026, with enhanced support and an industry-leading growth outlook. Furthermore, we will improve the efficiency and reliability of this fleet,” he explained.

Keith Creel explained that there is strong operational momentum towards the end of the year to close out the period, so they expect gains of between 10% and 14% compared to last year .

“Our dedicated team of railmen across CPKC’s unparalleled network continues to do what we said we would do, driving growth safely and opening new markets while upholding our commitments to our stakeholders. Through strong execution of our strategy, focused on leveraging our presence in North America, we remain on track to meet our full-year 2025 guidance,” Creel added.

Regarding the potential merger between Union Pacific (UP)  and  Norfolk Southern Corporation (NSC) , he reiterated that “further consolidation is not necessary at this time and is not in the best interest of the industry. As we have stated before, we remain and will continue to be active participants throughout the regulatory process to ensure that the facts are known and understood.”

In that regard, he emphasized that “the proposed merger would result in a single railroad handling approximately 40% of U.S. rail freight traffic, representing overlap in key markets such as Chicago, Memphis, St. Louis, and New Orleans . This is not a simple end-to-end merger. A merger of this magnitude introduces unprecedented risk by concentrating much of the decision-making power of our national rail network, with undeniable implications across the entire supply chain.”

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The U.S. railroad NSF Railway has ruled that the potential merger between  Union Pacific (UP)  and  Norfolk Southern Corporation (NSC) is unnecessary, anti-competitive, and would increase rates, impacting the U.S. supply chain.

“Our nation’s supply chain does not need the reduction in competitive options or the inherent integration risk we have seen occur after nearly every Class I merger. No customer is requesting a merger between UP and NS. It is driven by Wall Street with the promise of a large payout for shareholders,” the firm said in a filing.

Among the impacts, he said, the merger is expected to concentrate control of the country’s freight transport market in a single railroad, which would lead to long-term harm to competition and resilience in the national supply chain.

According to the railroad, the merger between UP and NSC would control 45% of the total U.S. tonnage , compared to the recent merger that created Canadian Pacific Kansas City (CPKC) , which resulted in control of 5% of the U.S. market.

In that sense, he emphasized that such a merger would bring less competition , meaning fewer alternatives and higher fares, as well as a reduction in capital investment across the entire rail industry.

“The revenue and efficiency gains claimed to justify the merger’s excessive premium simply don’t add up. Carriers will cover the $85 billion merger price tag, despite UP’s claims that it will be paid for through 10% growth over three years,” he said.

He also noted that UP has a history of increasing traffic fares and aggressively cutting costs, which will impact the entire supply chain, which is why industries such as the chemical and agricultural industries are actively opposing this merger.

“Truckload and agricultural customers will be the most affected, as they will lose the option to ship goods to the eastern United States or face significantly higher rates on traffic currently exchanged with NSC,” he said.

He reported that, according to Surface Transportation Board (STB) data , a combined UP-NSC railroad would control 50% of the chemical market (higher prices for consumer goods), as well as 50% of the metals market (higher construction costs) and 50% of lumber (higher housing costs).

The railroad company stated that if this merger were to materialize, 300 intermodal lanes would be closed . It recalled that after the last major round of mergers alone, 90 such facilities were closed.

“BNSF does not believe that the appropriate competitive response is to acquire CSX at this time. We should not be seen as the solution to correct the competitive imbalance that UP-NS is trying to create. Wall Street and UP would like to force BNSF into a competitive merger that would establish a coast-to-coast duopoly controlling over 90% of our nation’s rail traffic,” he stated.

He explained that the supply chain in general wants and needs greater collaboration between railroads and shared customers, greater technological innovation, and more strategic investments through privately funded infrastructure, as is being done with the Barstow International Gateway and the recent announcement with CSX.

He argued that these alliances provide more options while preserving competition and flexibility.

“BNSF must continue to offer competitive and efficient transportation services and grow alongside our customers. This requires competition, which is not possible with a dominant railroad resulting from the proposed UP-NS merger,” he emphasized.

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El cargo Union Pacific and Norfolk Southern notify STB of intent to merge apareció primero en T21.