US Class 1 freight railways Union Pacific (UP) and Norfolk Southern (NS) submitted an amended merger application to the Surface Transportation Board (STB) on April 30, seeking approval to create America’s first transcontinental railway.

Filed by UP and NS on December 19 2025, the initial merger application was rejected by the STB on January 16. The STB said that it did not provide all the supporting information required in a major merger application, including projections of merger-related growth and other changes to market conditions that the applicants anticipate.

UP and NS say that they have completed the additional work requested by the STB. They add that the analysis contained in the updated application is the first to use 100% actual traffic data provided by all six Class 1 railways in North America, rather than sample data available from the STB.

What the partners describe as “the most thorough assessment of market and operational impacts ever” confirms that the merger will make rail significantly more competitive with long-haul trucking, taking approximately 2.1 million trucks off the road. This will save shippers an estimated $US 3.5bn year, according to UP and NS, savings which are expected to flow through to consumer prices.

As requested by the STB, the amended application includes more detailed market share projections of the growth expected from offering faster and more reliable coast-to-coast freight services.

UP and NS say that customer access to competing railways will be maintained, and that the merger will have no meaningful impact on geographic competition or on the availability of independent routes.

“Our merger will create strong growth by providing customers a superior service product, which in itself creates competition in the railroad industry,” says NS president and CEO, Mark George. “The announcement of our merger alone has caused other railroads to respond with new offerings.”

The STB has invited comments on the completeness of the revised application by May 8. The applicants will have until May 12 to reply. The STB says that comments on the merits of the proposed transaction will be sought at a later stage, should the board accept the revised application.

UP and NS expect the merger transaction to be completed in the first half of 2027.

“We appreciate the STB’s feedback and look forward to continuing to work with them through the process,” says UP CEO, Jim Vena.

“We are confident our updated application meets their guidance and presents an even stronger case for why America needs a seamless coast-to-coast railroad to reinvigorate the rail industry.”

Opposition

The day before the revised merger application was submitted, a group which claims to represent a broad cross-section of the US economy was formed to oppose the proposed merger. The Stop the Rail Merger Coalition (SRMC) includes Class 1 freight railways BNSF and CPKC.

“If allowed to move forward, the deal would create the largest consolidated railroad in US history and give a single entity control over almost half of the nation’s rail traffic,” says SRMC.