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Union Pacific and Norfolk Southern entered an agreement to merge their networks, forming the “first transcontinental railroad” in the U.S., according to a Tuesday press release.
The companies aim to close the transaction in 2027 and plan to submit a merger application for the Surface Transportation Board to review in the next six months.
If approved, the combined network would connect more than 50,000 route miles across 43 states, provide access to 10 international interchanges and link with roughly 100 ports, according to the release. The two companies also expect to eliminate interchange delays, open new routes, expand intermodal services and reduce distance and transit times through the combination.
“The impact of this agreement cannot be overstated,” Union Pacific CEO Jim Vena said in a Tuesday letter. “A single coast-to-coast network will deliver faster, more competitive service by eliminating car touches and interchange delays, opening new routes, expanding intermodal services, and ensuring faster transit times on key rail corridors.”
Vena would lead the combined company as CEO, should the merger be approved and finalized. He has committed to remain with Union Pacific for at least five years, per the release.
The agreement comes days after the two companies confirmed reports they were in “advanced discussions” about a potential merger.
