NASHVILLE, TN – Two major rail carriers—Union Pacific and Norfolk Southern—have announced plans to merge, forming what would be the first U.S. transcontinental railroad spanning 50,000 route-miles across 43 states. The deal, announced July 29, still requires approval from the Surface Transportation Board (STB), which has posted a dedicated merger resource page and expects a final ruling by 2027.
Under STB rules, rail mergers must enhance competition and serve the public interest. Agriculture stakeholders are watching closely, as the new network could streamline coast-to-coast shipments or, conversely, reduce routing options and drive up rates for grain, feed, and fertilizer transportation.
Meanwhile, rail congestion continues to affect the sector. Norfolk Southern has embargoed wheat shipments to Ardent Mills in Chattanooga due to backlogs. The mill, Tennessee’s largest, is also dealing with barge delays stemming from lock repairs. These chokepoints raise concern over near-term wheat deliveries, especially with export volumes on the rise and global competition from Russia expanding.
The STB is expected to scrutinize both competitive impacts and downstream effects, including whether other Class I mergers would follow this precedent-setting deal.