Union Pacific Corp. and Norfolk Southern Corp. announced an agreement to merge and create America’s first transcontinental railroad. The deal will connect more than 50,000 route miles across 43 states from the East Coast to the West Coast, linking approximately 100 ports and nearly every corner of North America.
“This combination will transform the U.S. supply chain, unleash the industrial strength of American manufacturing and create new sources of economic growth and workforce opportunity that preserve union jobs,” the companies stated.
Under the terms of the agreement, Union Pacific will acquire Norfolk Southern in a stock and cash transaction that implies an enterprise value of $85 billion for Norfolk Southern, resulting in the creation of a combined enterprise of over $250 billion.
Together, the companies aim to be the safest railroad in North America and deliver the service customers rely on with operational excellence. The combined company will deliver faster, more comprehensive freight service to U.S. shippers by eliminating interchange delays, opening new routes, expanding intermodal services, and reducing distance and transit time on key rail corridors.
A more truck-competitive solution, the Union Pacific Transcontinental Railroad will decrease highway congestion, reducing wear and tear on taxpayer-funded roads. Today, Union Pacific and Norfolk Southern invest approximately $5.6 billion annually in infrastructure, innovation, and network expansion.
