Trade Groups Oppose Union Pacific-Norfolk Southern Merger
More Than 60 Groups Cite Weakened Industry Competition
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OnJuly 29, 2025,Union Pacific Corp.announced it had agreed to buyNorfolk Southern Corp.in a deal valued at $85 billion.
More than 60 trade associations and chambers of commerce submitted a letter to theSurface Transportation Boardlast week opposingUnion Pacific Corp.'sproposed acquisition ofNorfolk Southern Corp.
Among the groups signing the letter were theWest Virginia Manufacturers Association, theOhio Chemistry Technology Council, theKentucky Association of Manufacturersand theRail Passenger Association.
The largest railroad merger inU.S.history was announced less than three months ago, and opposition has begun.
Shareholders ofNorfolk Southern Corp.andUnion Pacificvoted Nov. 28 to approve the agreement that allows UP to buy and absorb NS in a deal valued at $85 billion.
ACD supports NAWE in raising concerns over the proposed UP–NS merger. Intermodal rail keeps supply chains moving—further consolidation risks service, competition, and regional economies. We urge the STB to assess long-term impacts.
Read more: — Alliance for Chemical Distribution (@ACD_chem)
One signer was theAmerican Chemistry Council, which had previously said it opposes the acquisition.
“History has shown that increased rail consolidation leads to fewer choices, higher transportation costs, service disruptions, and reduced economic competitiveness. Today, just four Class I railroads control more than 90% of freight rail traffic. The proposed UP/NS transaction would be the largest rail merger in history and would put control of more than 40% of rail traffic in the hands of a single railroad. It would further weaken the small amount of competition that currently exists in the railroad industry,” the letter says.
“Past rail mergers have triggered major breakdowns in the supply chain and increased costs for businesses and consumers alike. Given the potential for widespread economic harm, it is essential that theSurface Transportation Boardproceed with great care. The creation of a transcontinental railroad must not come at the expense of competition, service reliability, or the broader health of theU.S.supply chain.”
One Deal Approved
Also last week, the STB approved a smaller-scale acquisition that could affect northernWest Virginia.
The STB allowedFortress Investment Group to acquire control ofWheeling & Lake Erie Railway Co. (W&LE) andAkron Barberton Cluster Railway Co. (ABC). The acquisition will add to Fortress’s existing portfolio of six Class III rail carriers. W&LE, a Class II carrier, operates over approximately 982 miles of track inOhio,Pennsylvania,West Virginia andMaryland.ABCis a Class III carrier that operates over approximately 84 miles of track in the vicinity ofAkron, Ohio.
The W&LE crosses West Virginia’s Northern Panhandle on a route betweenSteubenville, Ohio, andPittsburgh.
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It also has a line that runs down theOhioside of theOhio Riverin the Northern Panhandle area and crosses theOhioon a bridge to connect toWest Virginiasouth of Wheeling. It connects withCanadian National RailwayatToledo, and it has several interchange points withNorfolk Southernand other railroads.
In its decision, the STB said the transaction satisfies the applicable statutory criteria and will not result in significant impacts on competition. The board also found that the transaction will enhance W&LE’s and ABC’s access to capital and therefore facilitate strategic investment decisions and growth opportunities.
