Union Pacific, Norfolk Southern announce plans for America’s first transcontinental railroad

Union Pacific Corp. and Norfolk Southern Corp. have announced an agreement to create America’s first transcontinental railroad. The two companies plan to connect 50,000 route miles across 43 states coast to coast and connect some 100 ports and nearly every corner of North America.

“This combination will transform the U.S. supply chain, unleash the industrial strength of American manufacturing and create new sources of economic growth and workforce opportunity that preserves union jobs,” the companies said in a joint statement.

UP will acquire Norfolk in a stock and cash transaction, resulting in the creation of a combined enterprise of over $250 billion.

“Railroads have been an integral part of building America since the Industrial Revolution, and this transaction is the next step in advancing the industry,” said UP CEO Jim Vena. “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. Right now, tens of thousands of railroaders are moving almost everything we use. You name it, and at some point, the railroad hauled it.”

The merger is reported to deliver faster, more comprehensive freight service to shippers by eliminating interchange delays, opening new routes, expanding intermodal services and reducing distance and transit time on key rail corridors. Additionally, the Union Pacific Transcontinental Railroad is expected to decrease highway congestion and reduce wear-and-tear on taxpayer-funded roads.

“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,” said Mark George, CEO of Norfolk Southern. “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.”