Trouble on the Tracks

Risky Union Pacific–Norfolk Southern Merger Threatens Rail Competition and Service

The Rail Customer Coalition, which represents manufacturing, agriculture, energy, and other vital industries across the U.S. economy, is sounding the alarm on the proposed Union Pacific–Norfolk Southern merger.

The deal would create a transcontinental behemoth with monopoly power over nearly half of U.S. rail traffic, pushing up prices while driving down service for the businesses that move America’s economy.

In a joint letter to the Surface Transportation Board (STB), the Coalition urged regulators to fully scrutinize the merger, warning that more consolidation in an already concentrated freight rail market “would harm American workers, consumers, and the broader economy.”

Big Merger – Big Problems

Taking Competition Off the Tracks

History shows what happens when Big Rail consolidates: fewer choices, higher costs, and worse service. Today, just four Class I railroads control over 90% of U.S. freight rail traffic. The UP–NS would wipe out what little rail-to-rail competition remains today.

Driving Up Costs for Shippers and Consumers

A comprehensive analysis by Escalation Consultants examining the cost of the dramatic consolidation in the rail industry reveals that freight rail rates have surged more than 40% (adjusted for inflation) over the last two decades, while service quality has declined.

Merger Meltdowns

Past mergers have resulted in massive service failures that have resulted in delays, disruptions, and embargoes that choke production and weaken supply chains. With fewer competing railroads, shippers are left in a take it or leave it situation.

Undermining U.S. Strength

A coast-to-coast merger could make the U.S. supply chain less resilient and raise transportation costs, hurting manufacturing competitiveness and slowing export growth.

Hit the Brakes on the Merger Monopoly

America’s freight rail network is already dominated by a small number of carriers. A Union Pacific–Norfolk Southern merger would put an even bigger rail monopoly in the driver’s seat, instead of the American producers, workers, and consumers who power the economy.

The STB must apply the hard lessons of past mergers and take meaningful action to enhance competition, protect service, and strengthen supply chain resilience.

More mergers are not the solution, and monopolies should be a thing of the past.

Learn More

Press Release

Rail Shippers Warn: UP–NS Merger Could Harm Competition, Raise Costs

(Sept. 16, 2025)

Backgrounder

Rail Merger 101: Why the UP–NS Deal Is Bad for America

Report

Analysis: Rail Rates Climb Higher as Competition Gets More Scarce

(PDF)

Frequently Asked Questions (FAQ)

Will the UP—NS merger create a monopoly?

If approved, a merger between UP and NS would represent a massive concentration of market power in an industry already dominated by a few railroads — whose numbers have declined by more than 70% over the past several decades in one of the most sweeping consolidations in U.S. transportation history. This merger would create a transcontinental monopoly, controlling nearly half of all U.S. rail traffic and exerting outsized influence over America’s critical supply chains.

Are rail monopolies bad for the economy?

Monopolies are harmful to the economy because they suppress competition, limit consumer choice, and concentrate power in ways that can stifle innovation and raise prices. President Trump’s recent executive actions targeting anti-competitive regulations reflect growing bipartisan concern. Vice President Vance summed it up well: “When one or two companies dominate an entire industry, it’s bad for liberty and bad for prosperity.” History backs this up — rail monopolies of the late 19th and early 20th centuries led to widespread abuse of market power, prompting landmark antitrust laws to protect farmers, shippers, and consumers.

Today, similar concerns are resurfacing. The UP—NS merger has drawn bipartisan scrutiny, with a large group of Senators urging the STB to closely examine the deal. They warned that the merger could give one company control over more than 40% of U.S. freight rail traffic, threatening competition and harming producers already facing limited rail options.

Why is the RCC concerned about the UP—NS merger?

Past mergers have led to higher costs, degraded service, and supply chain disruptions. Members of the RCC are concerned that the UP—NS merger would further concentrate market power in an already consolidated freight rail industry, reducing competition and leaving shippers with fewer service options. If approved, it could spark a new wave of consolidation, leaving captive shippers with even fewer rail companies to choose from.

Is the UP—NS merger necessary?

The supposed benefits of the merger — improved service, efficiency, and network reach — can be achieved without creating a rail monopoly. Just look at the recent BNSF—CSX partnership, which expanded service through cooperation, not consolidation.

Union Pacific has also challenged previous mergers — most recently filing a lawsuit saying the merger between Canadian Pacific and Kansas City Southern was unnecessary and would reduce competition.

The Surface Transportation Board (STB) already favors collaborative innovation over mergers, recognizing that competition drives better outcomes for shippers and consumers.