America's 1st Transcontinental Railroad Planned After Train Company Merger

Union Pacific and Norfolk Southern announced a landmark merger on Tuesday (July 29), creating America's first transcontinental railroad. This historic agreement will connect over 50,000 route miles across 43 states, linking approximately 100 ports from the East Coast to the West Coast. The merger, valued at $85 billion, will result in a combined enterprise worth over $250 billion.

Union Pacific will acquire Norfolk Southern in a cash and stock transaction, offering $320 per share, a 25% premium over Norfolk Southern’s average stock price. The merger aims to transform the U.S. supply chain, enhance competition, and create economic growth while preserving union jobs.

Jim Vena, CEO of Union Pacific, stated, "Railroads have been an integral part of building America since the Industrial Revolution, and this transaction is the next step in advancing the industry." The combined company will provide faster, more comprehensive freight service by eliminating interchange delays and expanding intermodal services.

The merger is expected to face regulatory review by the Surface Transportation Board and aims to close by early 2027. The deal will also challenge rival railroads like BNSF and CSX to stay competitive.

Mark George, CEO of Norfolk Southern, expressed confidence in the merger's benefits, stating, "We are confident that the power of Norfolk Southern’s franchise will contribute meaningfully to America’s first transcontinental railroad."

This merger is anticipated to reshape the U.S. logistics landscape, revitalize manufacturing, and drive job creation while reducing highway congestion and wear-and-tear on roads.