When Union Pacific and Norfolk Southern announced plans to merge this summer, all eyes turned to the other five Class I railroads to see how they would respond — especially CSX Transportation, NS’s main rival in the East. However, while it has faced intense pressure to join with another railroad to form a transcontinental line that would rival a combined UP-NS, including from some of its own shareholders, CSX has chosen a different path.

Since mid-July, CSX has announced new partnerships with three different railroads, most recently Canadian National. On Tuesday, the two railroads revealed a plan to operate a connecting intermodal service from Canada’s West Coast to Nashville. CPKC and BNSF have announced similar partnerships. 

“At CSX, we’re committed to working with our interchange partners to create solutions that deliver mutual value and expand the options available to customers,” said Kevin Boone, Executive Vice President and Chief Commercial Officer of CSX. “This new service with CN provides a faster and more sustainable all-rail option into Nashville, helping shippers strengthen their supply chains while reducing truck traffic on our highways.”

In August, hedge fund group Ancora Holdings told the CSX board of directors that the railroad should pursue a merger or fire its CEO, Joe Hinrichs. However, Hinrichs dismissed talk of a merger and stated the industry could better serve customers and the country by working together now instead of pursuing costly mergers that would take years to complete and could disrupt the network. This message is similar to the one promoted by CPKC CEO Keith Creel and BNSF owner Warren Buffett. 

While many in the rail industry oppose a UP-NS merger, the Trump administration clearly supports the idea. Last month, U.S. Commerce Secretary Howard Lutnick told CNBC that a merger could improve the efficiency of the rail network. Meanwhile, the Trump administration dismissed U.S. Surface Transportation Board member Robert E. Primus without cause or explanation, aside from the belief that he “did not align with the president’s America First agenda.” Primus was notable for being the only vote against the Canadian Pacific-Kansas City Southern merger in 2023. It was the first time in the STB’s history (or its predecessor, the Interstate Commerce Commission) that a member was fired. Primus has stated that his termination was illegal and plans to challenge it. 

—Justin Franz