Norfolk Southern recently reported a profit of $768 million for the second quarter of 2025, although this figure was influenced by one-time costs related to past derailments.

In contrast to Union Pacific, Norfolk Southern has adopted progressive labor practices, emphasizing employee training and transparency while pledging not to furlough workers during economic downturns.

Both companies are committed to maintaining a strong focus on safety and service, leveraging their extensive networks to provide enhanced transportation solutions.

Independent analysts suggest that the merger could yield significant efficiency benefits, which will be crucial for gaining regulatory approval.

Union Pacific has proposed an ambitious $85 billion merger with Norfolk Southern, aiming to create the first transcontinental railroad in the U.S. to enhance the efficiency of goods delivery across the nation.

However, this merger is expected to face significant scrutiny from antitrust regulators, who are wary of past consolidations that led to traffic disruptions and delays.

The merger requires approval from the Surface Transportation Board, with plans to file for this approval within six months and hopes to finalize the deal by early 2027.

Union Pacific has faced criticism for its corporate culture, which is seen as prioritizing aggressive operational metrics over worker and public safety.

Despite the anticipated efficiency improvements, concerns remain among shippers regarding reduced options and the increased power of major railroads in the market.

The Teamsters Rail Conference, representing over 70,000 rail workers, has stated that they will withhold comments on the merger until they can meet with executives from both companies.

Despite potential job concerns, investors reacted positively to the merger talks, with shares in Norfolk Southern rising, reflecting optimism about cost-saving opportunities.

The discussions surrounding this merger have surprised many in the rail industry and Wall Street, as the U.S. freight rail system is currently structured as two regional duopolies.