ports

STB Moves Forward With UP-Norfolk Southern Merger Review

The Surface Transportation Board has accepted Union Pacific and Norfolk Southern's merger application for formal consideration, though the rail regulator has requested supplemental materials from the carriers. The decision marks a significant step in the contentious combination process for two of North America's largest freight railroads. The companies submitted an amended application in late April that projects annual shipper savings of $3.5 billion. The proposed merger would create the first transcontinental railroad connecting the carriers' networks. Industry opposition to the deal has intensified as the regulatory review proceeds. The STB's request for additional information indicates the agency intends to conduct a thorough examination of the transaction.