The Surface Transportation Board denied three motions seeking to dismiss Union Pacific’s revised merger application with Norfolk Southern, voting 4-0 to let the review continue. BNSF Railway, CSX Transportation and five shipper groups had argued that UP and NS failed to make a prima facie case for the deal.
The unanimous vote did not stop Richard Kloster, the board’s newest member, from criticizing the railroads’ filing. In a separate concurrence, he said UP and NS “still have a long way to go” to show the merger serves the public interest. He also criticized their reliance on intermodal benefits, saying the market is already competitive by current standards. Kloster said the railroads have been adding to their case incrementally rather than putting their strongest arguments in the application.
The board stressed its ruling reflects no view on the merger’s merits and called this a transaction of first impression. Opening comments are due November 18, with responses due February 16, 2027, well ahead of any final decision.
The board stressed that its ruling does not address the merger’s merits or endorse UP and NS’s arguments. It called the deal a “transaction of first impression.” Opening comments are due November 18, with responses due February 16, 2027.
The ruling follows UP and NS’s supplemental filings this summer, including proposals involving their ownership stakes in shared terminal companies. The American Chemistry Council, one of the shipper groups seeking dismissal, said it would continue pressing the STB over competition and customer choice.
