Union Pacific, Norfolk S. Cite STB Ruling, Union Support


   
   HOUSTON, TX (DTN) -- Union Pacific and Norfolk Southern said Tuesday their 
proposed merger cleared two new hurdles after federal regulators rejected 
opponents' efforts to dismiss the application. Separately, a rail labor group 
agreed to job protections, giving both rail companies fresh momentum as they 
seek approval to create what they call the nation's first coast-to-coast 
railroad.

   The Surface Transportation Board unanimously denied motions seeking summary 
rejection of the revised Union Pacific-Norfolk Southern merger application, 
allowing the agency's review to continue. 

   The STB said its decision does not rule on the merits of the transaction, 
and opponents may renew their arguments in formal comments due November 18, 
with responses due February 16, 2027.

   The companies also said the International Association of Sheet Metal, Air, 
Rail and Transportation's Railroad Mechanical Department, known as SMART-MD, 
entered a "jobs-for-life" agreement covering represented employees. Union 
Pacific and Norfolk Southern said the pact means a majority of unions 
representing their workers now support the merger.

   The railroads say the combined company would eliminate time-consuming 
interchanges, keep existing gateways open, create seven premium intermodal 
lanes, convert 10,000 interline lanes to single-line service and shift more 
than 2 million truckloads from highways to rail. 

   Both companies said committed gateway pricing would allow more customers to 
share in the merger's benefits.

   The deal still requires STB review and approval and would remain subject to 
STB oversight after closing. The companies expect the transaction to be 
completed in the second half of 2027.




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