Posted on 07/25/2025 8:19:25 PM PDT by Governor Dinwiddie
A merger would create a 52,000-mile system spanning the U.S. but would face regulatory obstacles.
Combining Union Pacific and Norfolk Southern into the first transcontinental railroad in the U.S. would create a 52,215-mile colossus that could offer seamless service from coast to coast, bypassing longtime interchange choke points in Chicago and at gateways along the Mississippi River.
The two railroads confirmed today that they are in advanced merger discussions. The talks, they said, may not result in a deal. Plus, there’s the potential for a bidding war if BNSF Railway, UP’s Western rival, decides to make a move for NS. And there’s no guarantee that the first proposed merger involving two major Class I systems in more than 25 years would pass regulatory review in Washington.
Union Pacific CEO Jim Vena. UP But UP CEO Jim Vena, speaking on the railroad’s earnings call this morning, said the industry needs to move forward during a period of rapid technological change. “If you stand still, you get left behind,” he says.
A merger involving well-run railroads can boost the nation’s economy and help shippers because of the elimination of costly and time-consuming interchanges that can be unreliable, Vena says. “The more we can move off of highways onto our railroad, the more we allow our customers to be able to win in the marketplace,” he says.
The railroad would stretch from Seattle, San Francisco, and Los Angeles to the Northeast, Mid-Atlantic, Atlanta, and Jacksonville, Fla., with lines blanketing the country’s midsection from the Twin Cities, Detroit, and Chicago to Dallas-Fort Worth, Houston, and the Mexican border.
The combined system would generate $36 billion in revenue, handle 15.3 million carloads.
(Excerpt) Read more at trains.com ...
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It would be interesting to see if such a merger would ever get STB approval.
Train schedules and travel times are God awful
I think it would be good for the economy to have one train outfit with tracks east to west border to border across the U.S.
Freight, that would be good
RE: there has already been too much consolidation
In Red Storm Rising Tom Clancy noted that the Soviets like the centralized efficiency of “one big thing” such as all the batteries made by one place, all the submarines at another, the food distribution from one big warehouse and trucking complex and so on. Problem is what happens if one has a big problem and has to shut down.
Also, after the consolidation is signed, there is a news report “Rail unions go on strike at Noon.”
Paint Companies most effected.
Isn’t BNSF owned by Berkshire Hathaway (Warren Buffett)?
After backpacking in Europe while I was in college, it has never made sense to me that we don’t have a cross-country passenger rail system.
We do. You can take a train from NYC to Chicago, and then to Seattle or San Fransico. Then down to LA and then over to New Orleans and back to NYC. There’s an auto train from Virginia to Florida. There’s high speed rail from Boston to NYC to Philly to DC. And there are so many other lines, too numerous to list. And that’s just Amtrak. But for the most part, people would rather fly or drive. This isn’t Europe. (And I lived in Amsterdam for over a year and took trains everywhere.)
Why would Norfolk Southern want to merge with a an aging short-term dividend generator that has already been breaking up the furniture and tossing it in the firebox just to keep the hedge fund vultures (reasonably) happy? UP is a corporation that is embarrassed to have a railroad attached to its ass.
Jay Gould approves.
I believe if it is approved, short lines would increase, so it might affect some (now major) lines. G & W (Genesee & Wyoming) might get more lines to ruin...
I just did a quick comparison of travel from NY to LA for tomorrow, July 27th. Amtrack cost is listed at $607 while a plane ticket via Orbitz is listed at $340.
The train is listed to take 3 days and 5 minutes. I'm not sure, but I think this is the cost of a regular seat, not a sleeper. Also, you must pay for all meals in those 3 days.
The air travel is listed at $340 and takes 6 hours and 9 minutes. A meal or snack is probably included.
This might have something to do with it.
“...There’s high speed rail from Boston to NYC to Philly to DC...”
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I have been on those trains in Philly, D.C. and New York.
they are very efficient, but they are not “high speed rails”.
The design speed for “High Speed Rails” range from 125 mph to 250 mph.
The newest lines in Europe operate at 200 mph.
Several lines in China operate at 220 mph.
Yeah, no joke…..
Bah! It’s nothing compare to Joe Biden’s intercontinental railroad.
Or was that Obama’s?
I’m not a fan of the NS livery and find that the UP paint fades way too fast.
The UP could work on washing their locos more often too.
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