Industry groups bring questions for UP/NS Merger

In light of the Dec. 19, 2025, Union Pacific Railroad (UP) merger application filing with the Surface Transportation Board, different industry groups are surfacing with their questions and challenges for the approval of a coast-to-coast railroad merger.   

Recently, the National Grain and Feed Association (NGFA) filed comments with the STB that underscore the incompleteness of UP’s application and encourages STB to request additional information before considering the application as complete. 

NGFA’s comments reference the Major Rail Consolidation Procedures that STB implemented in 2001, which requires a major merger application to contain specific and detailed information about how the applicants will not only preserve existing competition but enhance it, as well. This encompasses a plan to combat every competitive harm that could result from the merger, not just the loss of rail-to-rail competition.  

NGFA states, “while the application does outline three “commitments” to preserve and enhance competition, only one of the commitments – “a Committed Gateway Pricing program to extend the merger’s benefits to more customers” – enhances competition. Competitive harm is a serious consequence affecting not only rail shippers but entire sectors of the economy through the elimination of markets and destinations for products and services”. NGFA’s comments highlight the need for a more robust, detailed plan instead of the vague and generic discussion highlighted in UP’s application. 

Furthermore, in its comments, NGFA also pointed out that the proposed Service Assurance Plan is unsatisfactory. The plan doesn’t comply with the requirement for a process to compensate shippers for service failures and provides little information on back-up or contingency plans involving other rail carriers. Many in the grain industry have consistently urged for Service Level Agreements that guarantee minimum levels of service as a rail provider be instituted – past mergers have promised service assurance, only to have fallen well short of those promised increased levels of service and benefit to shippers.  

The U.S. Identity Preserved Alliance will host a webinar February 11 to present perspectives from industry associations and experts on the potential benefits and challenges of a proposed merger between Union Pacific and Norfolk Southern. Transportation Go, taking place April 8-9 in Chicago, will likely fall within the public comment period for the merger and will feature discussions among stakeholders supporting and opposing the proposal.