Proposed Union Pacific–Norfolk Southern Merger Would Control 50% of U.S. Rail Freight
BNSF CEO Katie Farmer warned that a Union Pacific–Norfolk Southern merger would consolidate 50% of U.S. rail freight under a single carrier, reducing customer flexibility and interchange options. She questioned UP and NS’s 12% volume growth forecast, citing UP’s 13% volume decline over the past decade.
1. Rival CEO’s Consolidation Concerns
BNSF CEO Katie Farmer said a combined Union Pacific and Norfolk Southern would control almost half of U.S. rail volume, eliminating customer optionality, reducing flexibility and interchange points, and enabling network optimization that could drive higher rates for shippers.
2. Doubts Over Volume Growth Projections
Farmer challenged the merged railroad’s plan to boost volume by 12% over three years, noting Union Pacific’s 13% volume decline in the past decade despite a 37% revenue-per-unit increase compared with other Class I carriers.
3. Merger Application Resubmission and Oversight Calls
Union Pacific and Norfolk Southern plan to resubmit their merger application to the Surface Transportation Board by April 30 after an initial rejection, and Farmer urged regulators to impose safeguards for local service and customer experience to support genuine volume growth.