Union Pacific (UP) and Norfolk Southern (NS) have enhanced their merger application by offering a new set of customer protections aimed at easing regulatory concerns. The submission to the Surface Transportation Board (STB) on July 27 was a required supplement to their application, which the STB accepted in May but paused pending more information.
The proposal includes four key commitments designed to address potential negative impacts on competition and service. These include expanding pricing programs, preserving rail options for shippers where competition might be reduced, allowing temporary access to alternative rail service if performance declines during the integration, and creating a new rate relief process if merger benefits are not delivered promptly.
The railroads stated these protections go beyond those of any prior rail merger and were developed after discussions with customers and the STB. This move is seen as a critical step to gain approval for the transcontinental deal, which the companies hope to finalize by mid-2027.