Rail Merger Roadblock Is a Win for Competition and American Energy
The Surface Transportation Board (STB) just hit pause on the proposed $71.5 billion merger between Union Pacific and Norfolk Southern.
The Wall Street Journal reports,
“Union Pacific UNP and Norfolk Southern’s NSC 0.59%increase; green up pointing triangle merger application is incomplete, a U.S. railroad regulator said Friday, a setback for the two companies’ efforts to unite their systems in a $71.5 billion deal.
The Surface Transportation Board rejected the application as a result of the incomplete status. The regulator said the application had insufficient information on the proposed combined company’s projected market share and lacked other necessary documents.
The agency invited the companies to revise and resubmit the application, adding a hurdle that is likely to delay what was already expected to be a lengthy merger-review process. The decision didn’t address broader concerns about rail consolidation and price increases that have been raised by unions and rival companies in recent months.”
Railroads are the backbone of America’s energy economy. A single, consolidated rail giant would wield enormous control over freight rates and service terms, enabling it to raise costs across the energy supply chain.
These concerns are not new. In October, Power The Future submitted a letter to the Surface Transportation Board urging regulators to reject the merger and warning that rail consolidation would harm competition. The message was clear: fewer rail options would mean higher prices for families, businesses, and communities.
As Power The Future Founder Daniel Turner recently said on the Scott Jennings Show, “When you get these big mergers, you get rid of competition, you get rid of competing pricing, and prices go up.” We’ve seen this before in banking and healthcare, where consolidation has driven higher costs and fewer choices. Rail should not be next.
The STB’s decision doesn’t end the merger effort, but it underscores the need for scrutiny. Competition is the real path to affordability, reliability, and American energy security.
January 22, 2026