Union Pacific and Norfolk Southern have unveiled a definitive merger agreement to create America’s first transcontinental railroad.
The two freight rail giants will combine coast‑to‑coast operations into a unified 50,000‑mile network spanning 43 states. The new system will connect approximately 100 ports, access 10 international interchanges, and serve nearly every corner of North America.
Combined, the railroads bring over 360 years of operating history, with NS’s origins dating to 1827, making it 35 years older than Union Pacific.
Union Pacific CEO Jim Vena will lead the consolidated railroad.
“Railroads have been an integral part of building America since the Industrial Revolution, and this transaction is the next step in advancing the industry,” Vena said.
“Imagine seamlessly hauling steel from Pittsburgh, Pennsylvania to Colton, California and moving tomato paste from Huron, California to Fremont, Ohio. Lumber from the Pacific Northwest, plastics from the Gulf Coast, copper from Arizona and Utah, and soda ash from Wyoming,” he said.
“Right now, tens of thousands of railroaders are moving almost everything we use. You name it, and at some point, the railroad hauled it.”
According to a 2024 report, Norfolk Southern operates 1,300 miles of track in Alabama, serves 565 customers and has over 1,500 employees.
RELATED: Norfolk Southern investing $200 million in Alabama rail infrastructure
NS has also long been a major economic player in Alabama.
Particularly through its investments in the 3B Corridor, which connects northern and central Alabama to the Port of Mobile. In 2024, NS committed over $200 million to upgrade 21 miles of track, terminal infrastructure, and yards across the state in a project that has already begun to deliver benefits.
Norfolk Southern has also invested $8.7 million toward the NEAR Megasite with additional help from the state through the Growing Alabama incentive.
That investment supported construction of a 70-acre rail-served, pad-ready industrial site, installation of a crossing, relocation of utilities, and a 500,000-gallon water tank, helping the region attract major industrial projects
RELATED: Norfolk Southern invests $8.7M in Etowah County megasite
All told, both rail carriers report they invest a combined total of approximately $5.6 billion annually in infrastructure, innovation, and network expansion.
“Norfolk Southern, like Union Pacific, is a railroad integral to the U.S. economy, with a storied 200-year legacy of serving customers across 22 states in the eastern half of the nation,” Mark George, CEO of Norfolk Southern said.
“Our safety, network, and financial performance is among the best we’ve had as a company, as is our customer satisfaction. And it is from this position of strength that we embark on this transformational combination. We are confident that the power of Norfolk Southern’s franchise, diversified solutions, high-quality customers and partners, as well as skilled employees, will contribute meaningfully to America’s first transcontinental railroad, and to igniting rail’s ability to deliver for the whole American economy today and into the future.
“Union Pacific is a true partner that shares our belief in rail’s ability to deliver for all stakeholders simultaneously, and we are excited for our future together,” George added.
The deal must clear the Surface Transportation Board (STB). The board currently holds a split political makeup and is expected to add a fifth member before the application is reviewed. The review period may extend up to 15 months, with a target closing by early 2027.
Union Pacific CEO Jim Vena described the merger as a transformational win for customers, workers and the American economy.
“It builds on President Abraham Lincoln’s vision of a transcontinental railroad from nearly 165 years ago and advances our Safety, Service and Operational Excellence Strategy,” Vena said.
Grayson Everett is the editor and chief of Yellowhammer News. You can follow him on X @Grayson270
