January 18, 2026 - TRA Newswire -

The Surface Transportation Board turned back Union Pacific’s application to acquire Norfolk Southern this past Friday. The Board didn’t say the transaction is good or bad, pro-competitive or anti-competitive. What it did say, very clearly, is that the application as filed did not meet the Board’s basic requirements for completeness, and that under federal law, an incomplete application must be rejected. Now UP and NS have more homework to do before they can resubmit their application. 

Meantime, meeting with the Midwest Association of Rail Shippers this past week, Union Pacific Railroad CEO Jim Vena laid out reasons why a proposed merger of Union Pacific and Norfolk Southern would be good for nationwide commerce.

At the winter meeting, Vena said “We knew our competitors would oppose the merger, and we understand why. This is a transformational merger that will inject more competition into the railroad industry and force them to enhance their service, reduce their price, or do both.”

In rejecting the merger application, the regulatory board identified three independent reasons the application could not proceed:

1. The applicants did not provide forward-looking market share projections, even though they repeatedly claimed the merger would lead to substantial traffic growth over several years.
2. The applicants did not submit the complete merger agreement, including key schedules that define how much regulatory burden Union Pacific is willing to accept before it can walk away from the deal.
3. A related application involving control of the Terminal Railroad Association of St. Louis was misclassified, which by itself made the broader filing incomplete.

For a transaction this large and this consequential, the Surface Transportation Board made clear that summaries are not enough. Regulators, stakeholders, and advocates are entitled to see the actual deal terms, subject to confidentiality protections if necessary.

Last month, Union Pacific and Norfolk Southern submitted their application to the Surface Transportation Board seeking approval to create America’s first transcontinental railroad. The filing, which includes extensive analysis from independent experts, demonstrates in detail how a seamless coast-to-coast railroad will provide faster service, greater reliability and a lower cost structure.

The application included a record-setting 2,000 letters of support from customers, public officials, industry associations and unions, demonstrating broad support.

Jim Mathews, President and CEO of Rail Passengers Association, voiced his concern in saying "The Board’s existing regulations already require applicants to show how they will protect passenger services and meet public-interest obligations. What may be changing is how seriously the Board expects applicants to prove those claims — especially when they sit alongside ambitious freight growth projections. For passenger rail, that could be consequential. It creates space for a simple but powerful question during the merits phase: If the merged railroad can accommodate significant new freight growth, what does that imply about its capacity claims when passenger rail seeks modest service expansions," questioned Mathews.

According to UP information, single-line transcontinental rail service will inject new competitive energy into the railroad industry and provide stronger competition with long-haul trucking. More than 500 shippers provided letters of support for the application.

“While our opponents appear to be stuck in the past, we are taking a bold step that will reinvigorate the rail industry and make the entire U.S. supply chain stronger,” Vena said. “We are not content to compete for share of a shrinking railroad industry. America needs strong, innovative railroads to shoulder the weight of a growing U.S. economy, and we are going to deliver.”

Vena indicated that the merger will lower costs by reducing handoffs and using faster, more efficient and price-competitive routes. According to a study by industry advisor Oliver Wyman, interline merchandise traffic moving 1,000 to 1,500 miles costs on average 35% more than comparable single-line service. 

The railroads have created a website with details of the merger. It can be found at  AmericasGreatConnection.com

Photo credit: Union Pacific