Union Pacific and Norfolk Southern are not waiting to merge to find the benefits of increased collaboration.
On September 15, the two railroads announced the launch of a new joint intermodal service connecting Louisville, Ky., with multiple western cities, including Los Angeles, Seattle, Portland, Salt Lake City, and Houston. The traffic will be interchanged between the two Class I railroads at Kansas City.
The announcement follows UP and NS competitors, particularly CSX Transportation, launching several new partnerships to enhance transcontinental service and demonstrate to stakeholders that another merger isn’t necessary. UP and NS announced in July that they planned to merge, putting pressure on other railroads to respond.
“Our customers want easier, more reliable freight solutions that they can depend on, and our robust service delivers that,” said Kenny Rocker, Executive Vice President – Marketing and Sales at Union Pacific. “Enhancements to the newly expanded Kansas City Intermodal Terminal and Norfolk Southern investments in Louisville allow us to compete with trucks, removing thousands from the nation’s congested highways.”
—Justin Franz