rail

Union Pacific Targets Trucking Market Share in Proposed Merger with Norfolk Southern

Union Pacific plans aggressive competition for freight currently moving by truck if its proposed merger with Norfolk Southern is approved, the railroad's marketing chief said. The combined railroad would unlock more than 88,000 county-to-county lanes for single-line service, addressing a structural disadvantage that has limited rail's competitiveness. Rail currently represents just 27 percent of total ton-miles in the U.S., hampered by multiple interchanges that add 24 to 48 hours to transit times and increase costs. The merger would reduce these handoffs by allowing freight to travel longer distances under one operating plan, lowering transit times and network costs. Union Pacific said the combination will force competitive pressure across rates and service, benefiting customers whether shipping by rail or truck.