Union Pacific and Norfolk Southern to Create America’s First Transcontinental Railroad in Historic $85 Billion Deal
Union Pacific Corporation and Norfolk Southern Corporation announced today a groundbreaking agreement that will establish the United States’ first fully integrated transcontinental railroad. This transformative merger brings together two of the most iconic freight railroads in North America, connecting over 50,000 route miles across 43 states, including vital East and West Coast gateways, and linking nearly 100 ports across the continent.
The combined network will create an unbroken coast-to-coast freight corridor that stands to reshape America’s transportation infrastructure, unlocking new efficiencies in the supply chain, enhancing competitiveness for American manufacturing, and generating broad-based economic benefits—while preserving union jobs and advancing sustainable logistics practices.
A Transformational Agreement
Under the terms of the agreement, Union Pacific will acquire Norfolk Southern through a stock-and-cash transaction. Based on Union Pacific’s unaffected closing stock price on July 16, 2025, the deal values Norfolk Southern shares at $320 each—representing a 25% premium over Norfolk Southern’s 30-day volume-weighted average price. This implies an enterprise valuation of approximately $85 billion for Norfolk Southern.
Once completed, the combined enterprise will boast a total value exceeding $250 billion, creating one of the most powerful transportation networks in the world and the first truly transcontinental railroad in U.S. history.
“This is a historic moment not just for our companies, but for the entire American economy,” said Jim Vena, CEO of Union Pacific. “For more than a century, railroads have been the backbone of industrial progress in this country. This next step carries forward that legacy—creating a seamless national freight corridor from coast to coast. Imagine moving steel from Pittsburgh to Southern California or shipping agricultural products, chemicals, and raw materials across the country with unprecedented speed and efficiency. This transaction brings that vision to life.”
Connecting America from Coast to Coast
The new transcontinental railroad will streamline freight transportation across the U.S., offering end-to-end service between the Atlantic and Pacific coasts without the delays and inefficiencies associated with interline transfers. By eliminating the need for railcar interchanges between carriers, the integrated system will reduce transit times, optimize routing, and provide faster, more predictable service.
“This network will offer unmatched scale and reach,” said Mark George, CEO of Norfolk Southern. “Our combined capabilities will open up new intermodal corridors, allow for more flexible and resilient supply chains, and deliver the kind of operational excellence that modern shippers demand. Norfolk Southern’s legacy of safety, customer service, and innovation will continue to thrive in this new chapter.”
The combined network will serve a wide range of industries, from energy and agriculture to automotive, construction, and consumer goods. Freight will flow more seamlessly across key markets including Chicago, Atlanta, Dallas, Los Angeles, and New York, as well as through major inland and coastal ports. This integration is expected to significantly boost the competitiveness of U.S. exports while lowering logistics costs for domestic manufacturers.
Economic Growth and Job Preservation
The companies emphasized that the merger is designed not only to improve efficiency and competitiveness but also to support American workers and communities. All unionized employees who wish to remain with the new company will have the opportunity to do so, ensuring continuity and job stability during the transition.
“This merger is pro-worker, pro-growth, and pro-America,” Vena stated. “We’re committed to maintaining union representation and providing opportunities for career development and advancement across our workforce.”
The newly formed Union Pacific Transcontinental Railroad is also expected to stimulate local economies across the country by enabling more reliable freight access to rural and industrial regions that currently face limited transportation options. The increased reach of the network will encourage investments in new facilities, warehouses, and distribution centers, helping to catalyze regional development and job creation.
Environmental Benefits and Infrastructure Investment
Beyond the economic and logistical impacts, the merger is expected to bring significant environmental advantages. Freight rail is already one of the most fuel-efficient modes of transportation, and the new integrated network will offer a more sustainable alternative to long-haul trucking. By shifting more freight from road to rail, the combined company will help reduce highway congestion, lower carbon emissions, and extend the life of taxpayer-funded infrastructure.
Together, Union Pacific and Norfolk Southern currently invest approximately $5.6 billion annually in capital projects, infrastructure upgrades, and technological innovation. This commitment will continue, with additional resources directed toward expanding capacity, implementing new safety technologies, and maintaining the reliability and resilience of the network.
“Creating a truck-competitive railroad is a win for the environment, the public, and the American taxpayer,” George added. “We are committed to reducing emissions and enhancing the safety of freight transportation through continued investment and innovation.”
Shared Vision and Leadership
The leadership teams at both companies emphasized their shared commitment to safety, customer service, and long-term value creation. The combined company will aim to set a new standard in the rail industry for operational excellence, transparency, and responsiveness to customer needs.
“Norfolk Southern is a strong, well-performing railroad with a 200-year legacy of innovation and excellence,” said George. “We enter this partnership from a position of strength—with high-performing assets, dedicated employees, and loyal customers. We believe in the power of rail to serve all stakeholders, and Union Pacific shares that belief. Together, we will build something extraordinary.”
The combined leadership team is expected to include executives from both companies, drawing on their respective expertise in network planning, technology, operations, and safety. Headquarters for the new transcontinental company will remain in Omaha, Nebraska, with key regional operations centers maintained in Atlanta, Georgia, and other strategic locations.
The merger is subject to customary closing conditions, including approval from shareholders and regulatory bodies such as the Surface Transportation Board (STB). Both companies expect the transaction to close by mid-2026.
If approved, this combination will fulfill a vision dating back to President Abraham Lincoln’s call for a unified rail system to link America’s coasts—a dream that began with the original transcontinental railroad in the 1860s. Now, more than 160 years later, Union Pacific and Norfolk Southern are poised to make that vision a fully integrated 21st-century reality.
“This is a bold step forward,” said Vena. “It’s about connecting communities, driving growth, and moving America into the future. Together, we will build the safest, most efficient, and most impactful railroad system the world has ever seen.”