North America’s four Class I railroads not named Union Pacific and Norfolk Southern took aim at the proposed UP-NS merger in January, a combination that, if approved, would create the largest railroad in U.S. history and the first single transcontinental. UP and NS submitted their historic merger application in December, and since then, their rivals have been taking potshots at the proposal. Most notably, all four railroads have filed comments with the U.S Surface Transportation Board — the independent regulator that will approve or deny the merger — claiming they believe the application is incomplete. 

Canadian National, through its American subsidiary Grand Trunk Western, perhaps summed up the opposition best when it wrote: “(The) Applicants seek approval from the Board for a proposed transaction they assert is an ‘unprecedented opportunity for our country’ because it will purportedly ‘create America’s first transcontinental railroad’ and ‘transform the nation’s supply chain.’ Applicants are correct that their Application is unprecedented in at least one respect: They seek the Board’s approval to undertake the first major transaction under the Board’s new rules, which require Applicants to show that the proposed transaction would not only preserve, but also enhance competition. Yet they fail to provide the Board, or interested parties, the information that is required.”

Among the rival railroads’ complaints is that while UP-NS has said their merger would remove 2 million trucks from America’s highways, it doesn’t provide proof of that claim. It also provides little evidence of how it would enhance competition, a requirement of the STB’s “new” merger rules established in 2001 (but exempted any merger with the smallest Class I railroad, Kansas City Southern, which was acquired by Canadian Pacific in 2023). 

For their part, UP has said the other Class I railroads are simply trying to delay the merger because it will force them to work harder against the competition. 

—Justin Franz