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Ag group watching potential rail merger closely

Note: This story was published 7/21/25 and updated 7/25/25 to show confirmation that merger discussions have been confirmed.

Another potential railroad consolidation is being watched by the Soy Transportation Coalition. 

Executive Director Mike Steenhoek tells Brownfield Union Pacific possibly acquiring Norfolk Southern Railroad would be a seismic event if it happens since none of the U.S. based railroads have coast-to-coast service.  He tells Brownfield if this transaction moves forward, it might encourage more consolidation. “It would provide significant momentum behind a merger or acquisition with the remaining two railroads, BNSF Railway and CSX, resulting in essentially two U.S. based railroads that both have service from coast to coast.”

Steenhoek says there would be arguments both for and against a rail merger, since handing freight off to another carrier or another mode of transportation adds cost but, “There’s a history of when you see consolidation within the rail industry, one of the results of that has been an increase in rates that those rail customers have to pay or a decrease in service.”

Steenhoek says if Union Pacific pursues a deal with Norfolk Southern, it might take regulators longer to evaluate than the Canadian Pacific & Kansas City Southern deal from a couple of years ago. “It’s significantly larger, and B, there are more competitive questions that will arise. As big as the acquisition of Kansas City Southern by Canadian Pacific was, this is a different scale.”

So far, Norfolk Southern has not commented on a possible merger or acquisition. A Union Pacific official told Brownfield July 21st, “Union Pacific does not comment on rumor and speculation” but did not confirm or deny if negotiations are taking place. Union Pacific confirmed negotiations are underway July 24th.

AUDIO: Mike Steenhoek discusses the possible merger of Union Pacific and Norfolk Southern railroads with Brownfield’s Larry Lee