Union Pacific and Norfolk Southern revise merger application with new customer protections

Union Pacific and Norfolk Southern have filed a revised merger application with U.S. regulators, introducing four new or expanded customer protections to advance the review of their proposed $85 billion deal. The updated filing, submitted on July 27, 2026, aims to address concerns raised by the Surface Transportation Board (STB) regarding competition and public benefits. Key commitments include an enhanced oversight process, expanded gateway pricing with double the eligible shipments, and temporary alternative rail service options for customers in case of service declines. The STB had paused its review in May, requesting additional information to clarify underdeveloped aspects of the original application. The revised submission seeks to meet the STB’s requirements under U.S. merger rules, which mandate proof that the deal would serve the public interest and enhance competition. The proposed merger, announced in July 2025, remains the largest in the rail industry’s history. While peers like BNSF Railway Co. have opposed the deal, Canadian National has signed an agreement with Union Pacific, granting it direct operating rights over tracks between Memphis and Eagle Pass, Texas, and has since withdrawn its opposition. Union Pacific CEO Jim Vena emphasized that the new commitments were shaped by customer feedback and STB comments, positioning the revised application as an unprecedented set of voluntary assurances.