by Dave Williams | Capitol Beat News Service
ATLANTA – Freight railroad companies Union Pacific and Atlanta-based Norfolk Southern announced a merger agreement Tuesday that will create the nation’s first transcontinental railroad.
The merger, subject to the approval of the federal Surface Transportation Board, will connect more than 50,000 route miles across 43 states, linking about 100 ports.
“Railroads have become an integral part of building America since the Industrial Revolution, and this transaction is the next step in advancing the industry,” said Union Pacific CEO Jim Vena, who will become CEO of the combined company Union Pacific Transcontinental Railroad.
“This combination is transformational, enhancing the best freight transportation system in the world. It’s a win for the American economy, it’s a win for our customers, and it’s a win for our people.”
“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,” Norfolk Southern CEO Mark George added. “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.”
Under the agreement, Union Pacific will acquire Norfolk Southern in a stock-and-cash transaction. The deal will create a combined enterprise worth more than $250 billion. Executives with both railroads promised a job with the combined company for every union employee who wants one.
Originally based in Norfolk, Va., Norfolk Southern moved its headquarters to Atlanta in 2021. While the combined company will be headquartered in Omaha, Neb. – Union Pacific’s home base – Atlanta will remain a core location focusing on technology, operations, and innovation, among other priorities, according to a news release.
The companies expect to apply for the merger with the STB within six months. The two company’s boards already have approved the agreement.
The companies are targeting closing the transaction by early 2027.
