FACTBOX-Major rail mergers that reshaped the US freight network
Union Pacific plans to acquire Norfolk Southern for $85 billion, creating the first coast-to-coast freight rail operator in the U.S. This merger follows a history of significant rail consolidations that have reshaped the freight network, often facing scrutiny from regulators. Notable past mergers include Burlington Northern & Santa Fe in 1995, Union Pacific & Southern Pacific in 1996, and CSX & Norfolk Southern's acquisition of Conrail in 1998. The landscape of U.S. railroads has been marked by both operational efficiencies and regulatory challenges.
(Updates with latest developments)
July 29 (Reuters) -
Union Pacific (UNP.N) said on Tuesday it would
buy
smaller rival Norfolk Southern (NSC.N) in an $85-billion deal to create the country’s first coast-to-coast freight rail operator.
Such mergers have historically reshaped the rail map, consolidating regional carriers into some dominant networks, but often come under intense scrutiny from the Surface Transportation Board.
Landmark mergers in the past - such as the creation of BNSF and between Union Pacific and Southern Pacific - have set the stage for today’s concentrated rail network, often triggering both operational gains and regulatory pushback.
Here are some of the largest railroad deals in the past three decades:
Year Merger Deal value Note
1995 Burlington Northern & $4.1 Created one of the
Santa Fe billion largest U.S.
railroads at the
time
1996 Union Pacific & $5.4 The merger caused
Southern Pacific billion significant
operational
problems and
shipping delays
that led to tougher
regulatory
standards
1998 CSX & Norfolk Southern $10.2 Conrail was split
split Conrail billion between CSX and
Norfolk Southern in
a joint acquisition
2023 Canadian Pacific & $31 billion First single-line
Kansas City Southern railroad linking
the U.S., Canada
and Mexico
2025 Union Pacific & First
Norfolk Southern $85 billion coast-to-coast
freight rail
operator
