By Allison Peck
More than 500 customers from across the country have publicly expressed support for Union Pacific's proposed acquisition of Norfolk Southern, with Union Pacific saying the number continues to grow as federal regulators review the $85 billion transaction.
Union Pacific announced the additional support Monday, saying 23 new shippers from industries including agriculture, energy, fertilizer, forest products, food and automotive have submitted statements supporting the proposed combination.
The companies are seeking approval from the Surface Transportation Board to combine Union Pacific's western network with Norfolk Southern's eastern network, creating what they describe as America's first coast-to-coast freight railroad.
For North Platte, the proposed merger could have a direct connection to how freight moves through Bailey Yard.
Union Pacific has previously pointed to a potential North Platte-to-Conway, Pennsylvania, route as an example of how a combined railroad could reduce the number of times freight is handed between railroads. Currently, freight moving between the Union Pacific and Norfolk Southern networks can require an interchange, including in the Chicago area. Under the proposed combination, Union Pacific says some of those movements could travel directly between the two systems.
Union Pacific says customers supporting the merger cite expanded access to markets, improved reliability and simpler supply chains as potential benefits.
Among those submitting statements are agriculture, transportation, energy and manufacturing companies. Union Pacific says customers have particularly pointed to the potential for a single railroad to handle shipments from origin to destination rather than requiring an interchange between carriers.
The railroad says more than 150 additional letters from customers, first responder organizations, community leaders and elected officials have recently been submitted to the Surface Transportation Board. That is in addition to more than 2,000 statements submitted with the railroads' amended merger application.
Union Pacific says the proposed combination could generate approximately $3.5 billion in annual savings and shift an estimated 2.1 million truckloads from highways to rail each year. Those figures are projections from the companies and would depend on the merger receiving regulatory approval.
The merger remains under review by the Surface Transportation Board. The board accepted the revised application for consideration in May and removed the proceeding from abeyance in August, beginning the process of evaluating the merits of the proposal.
On Sept. 18, the board denied motions from several parties seeking to have the revised application rejected without a full review. The board emphasized that the decision did not represent a determination on the merits of the proposed merger.
Comments on the revised application are due to the STB by Nov. 18, with responses due Feb. 16, 2027. A public hearing is expected after March 29, with the board's final decision expected after the record closes in 2027.
The proposed merger has also been a significant issue locally because of Union Pacific's presence in North Platte and the jobs associated with Bailey Yard. The railroad previously announced plans that could affect positions based in North Platte, prompting local officials and labor representatives to raise concerns about the local workforce.
Union Pacific and Norfolk Southern expect the proposed transaction to be completed in the third or fourth quarter of 2027 if it receives the required regulatory approvals.