Union Pacific and Norfolk Southern announced plans Monday to merge and create what they call “America’s first transcontinental railroad,” a move that has prompted the National Grain and Feed Association to launch an extensive evaluation of potential impacts on agricultural shipping.
The proposed $85 billion acquisition would connect over 50,000 route miles across 43 states, linking approximately 100 ports and creating a combined enterprise valued at more than $250 billion. Under the agreement, Union Pacific will acquire Norfolk Southern in a stock and cash transaction valuing Norfolk Southern at $320 per share.
“This combination is transformational, enhancing the best freight transportation system in the world,” said Jim Vena, Union Pacific CEO, who will lead the combined company. The railroads expect to close the transaction by early 2027, pending regulatory approval.
The National Grain and Feed Association, representing grain handlers who rely heavily on rail transportation, said it will thoroughly analyze the merger’s implications for agricultural shippers.
“About 3.2 million rail cars of grains, oilseeds and other agricultural products move by rail on an annual basis, representing more than 10 percent of all rail shipments, and 26 percent of grain has at least one rail movement,” said Mike Seyfert, NGFA president and CEO.
Seyfert emphasized the critical partnership between railroads and agricultural shippers, noting that NGFA “looks forward to hearing from the Union Pacific and Norfolk Southern railroads and learning how they believe the merger will create resilient and reliable efficiencies and incentives in timeliness of service and deliveries – along with fair and reasonable rates.”
The merger comes amid significant consolidation in the railroad industry, which has seen the number of Class I railroads decrease from 39 in 1980 to just seven today. The combined company would reduce that number to six.
According to the companies, the merger aims to deliver faster, more comprehensive freight service by eliminating interchange delays, opening new routes, and reducing transit time on key rail corridors.
NGFA said it will conduct extensive analysis and member discussions to determine the merger’s impact on cost and competitiveness for American agriculture, which depends heavily on efficient rail transportation to move crops from production areas to domestic and export markets.
