America’s first transcontinental railroad will span 50,000 miles as Union Pacific acquires Norfolk Southern

America’s first transcontinental railroad will soon be a reality following an announcement from Union Pacific Corporation and Norfolk Southern Corporation regarding an acquisition. 

The agreement was announced on July 29th, and states that Union Pacific will acquire Norfolk Southern in a stock and cash transaction valuing Norfolk Southern at $85 billion. 

“Railroads have been an integral part of building America since the Industrial Revolution, and this transaction is the next step in advancing the industry,” said Jim Vena, Union Pacific Chief Executive Officer, in a Press Release. “Imagine seamlessly hauling steel from Pittsburgh, Pennsylvania to Colton, California and moving tomato paste from Huron, California to Fremont, Ohio. Lumber from the Pacific Northwest, plastics from the Gulf Coast, copper from Arizona and Utah, and soda ash from Wyoming. Right now, tens of thousands of railroaders are moving almost everything we use. You name it, and at some point, the railroad hauled it.”

The acquisition will connect more than 50,000 miles of railroad routes across 43 states from the East to West coasts. The connected routes will link 100 ports, and is expected to promote American manufacturing and economic growth, along with a transformation of the US supply chain. 

“Norfolk Southern, like Union Pacific, is a railroad integral to the U.S. economy, with a storied 200-year legacy of serving customers across 22 states in the eastern half of the nation,” said Mark George, CEO of Norfolk Southern. “. We are confident that the power of Norfolk Southern’s franchise, diversified solutions, high-quality customers and partners, as well as skilled employees, will contribute meaningfully to America’s first transcontinental railroad, and to igniting rail’s ability to deliver for the whole American economy today and into the future.” 

The companies expect that the Union Pacific Transcontinental Railroad will create a freight solution that will compete with trucking through its streamlined routes. Adding that hauling freight via railroad will reduce road congestion, decrease damage done to roadways paid for by taxpayers, and potentially increase overall road safety. The move could “recapture market share from trucking,” according to one financial analyst interviewed by The Week US.

“This combination is transformational, enhancing the best freight transportation system in the world – it’s a win for the American economy, it’s a win for our customers, and it’s a win for our people,” Vena said. “It builds on President Abraham Lincoln’s vision of a transcontinental railroad from nearly 165 years ago and advances our Safety, Service and Operational Excellence Strategy. I am confident this historic transaction will enhance competition to benefit customers, communities, and employees while delivering shareholder value.”