The US Surface Transportation Board (STB) has unanimously accepted the revised merger application submitted by Union Pacific (UP) and Norfolk Southern (NS), but has once again requested additional information which must be submitted by July 27.
Placing merger proceedings in abeyance or on hold, the STB has also determined that UP and NS will be required to prepare an environmental impact statement (EIS) as they seek to create the first transcontinental Class 1 freight railway in the United States.
UP and NS submitted the amended application on April 30. The original application filed on December 19 2025 was rejected by the STB as it did not provide all supporting information required, including projections of merger-related growth and other changes to market conditions that the applicants anticipate.
In its decision issued on May 28, the STB says that UP and NS have now provided sufficient information to satisfy the completeness requirements for a major merger application. However, it finds that several aspects of the revised application are unclear or under-developed, and require supplementary information in order for the board to thoroughly evaluate if the transaction is in the public interest.
“As a result, today’s decision holds the proceedings, including the environmental review, in abeyance, pending the applicants’ submission and the board’s review of the supplemental information,” STB says. It adds that an appropriate procedural schedule for the remainder of the proceedings will be set out in a future decision.
UP and NS are required to submit supplementary information on aspects of the proposed merger. This includes how it will enhance competition in line with STB merger policy, and the implications for shipper access where the number of railways serving them will fall from two to one and from three to two.
Additional information must also be provided on the public benefits that UP and NS say will result from the merger making rail more competitive, which they believe will shift 2.1 million truckloads of freight from the roads and save customers $US 3.5bn a year. The STB also requires the merger partners to provide more details of their service assurance plan to maintain quality of service, as well as market share projections, the downstream impact of the merger and its effects on passenger services.
In response, UP and NS say they will continue working closely with the STB to provide the requested information. “Under the governing statute, the STB has 12 months from the date it publishes its acceptance to complete its evidentiary proceedings, providing a clear and defined path forward regardless of the timing of individual steps.” UP and NS expect the transaction to be completed in mid-2027.
“We are confident this merger will deliver more reliable and lower-cost transportation options for American businesses,” says UP CEO, Jim Vena.
“We submitted a comprehensive, data-driven application backed by a detailed plan for seamless integration. We look forward to the opportunity to show the facts and demonstrate the benefits for our customers, employees and America.”
Opponents respond
In response, competing Class 1 freight railway BNSF says that the STB’s determination that key elements of the revised application remain unclear or under-developed highlights the significant gaps that still exist. “Holding the proceeding and environmental review in abeyance until UP and NS provide this supplemental information underscores the seriousness of those deficiencies,” BNSF says.
“BNSF remains firmly opposed to the proposed UP-NS merger. The fundamental concerns persist: the transaction threatens to reduce competition, restrict access for shippers, and undermine the resilience and efficiency of the national rail network.”
The STB determination has also been welcomed by shippers’ association the National Industrial Transportation League (NITL), which as policy opposes further consolidation in the US rail freight industry.
“As a result of prior mergers, rail competition has been drastically reduced, and many NITL members have facilities that are captive to only a single railroad,” says NITL executive director, Nancy O’Liddy.
“Despite past promises that rail customers would benefit from mergers through more efficient service, today’s captive rail customers pay increasingly higher prices for unreliable and inadequate service.”
