A Union Pacific-Norfolk Southern combination would redraw the railroad map
88 comments
·July 25, 2025woodruffw
jcranmer
> the US has an incredibly advanced and dense rail network, paid for with federal land grants
Note that only a small portion of the US rail network was built with land grants, about 18k miles out of ~250k miles in the peak of the US rail network. Also, most of the land-grant railroads are in the Western states, which is actually generally the least-dense portion of the rail network (in large part because the population density of that area is quite low--which is a large part of the reason for the land grants in the first place!).
woodruffw
That's true, but I'd argue that the land grants are what made it economically worthwhile to develop and maintain the denser parts of the network. You correctly observe that the network itself tracks with population density, but the value of the network is in its completeness: it wouldn't be nearly as valuable if there was a 1000 mile hole in it in the middle of the country.
jcranmer
I strongly disagree with that argument.
The main dichotomy in political geography you have in the US is the opposite sides of the Mississippi River. You do have a transitional zone in Illinois (which nowadays as migrated to Chicago), but to a coarse approximation, even the rail magnates of the Gilded Age are unable to build systems that truly cross the transitional zone. In the West, the big prize is connecting the ports on the West Coast with ultimately Chicago, with lesser prizes for feeder lines to bring the products to Chicago. One of the big purposes of the land grants, after all, is to encourage settlement of agricultural lands in the area.
But in the East, the prizes are connecting to the Northeast ports (or Chicago, or to a lesser degree, the other major cities in the Mississippi River). And most of these lines aren't affected by the existence of the Western US. The commercial center, say, an Ohioan is looking towards isn't San Francisco, it's New York City. Rip out the land grant system, and you wouldn't reduce the viability of all of the lines being added in Ohio; although the lines people are working in, say, Indian Territory, will suffer mightily. But the latter are already in the not-dense portion of the network, whereas the former are in the dense part of the network.
It's really not until the mid-20th century that the Pacific Coast takes on the commercial significance that it has nowadays, by which time the railroad trackage of the US is beginning to decline as consolidation takes place.
nocoiner
It was also paid for by ripping the face of 19th century bondholders who went bust many, many times.
bluGill
Europes rail network is far worse - but it appears better because you see passanger traffic and don't think what else. That and europe mostly can't see beyond national borders (there is a language barrier with most) and so they fail to create good eu wide rail of any sort.
cycomanic
Far worse in what sense? More tracks, sure the US rail network is about 1.5 times the size of the European network for the same landmass.
But then, I don't think quality wise I don't think you'd encounter a track like this: https://www.youtube.com/watch?v=9X2A2f6E5DI anywhere in Europe. Or the comparison of high speed tracks 9600km in Europe vs 70 km in the US.
The reason for this is obviously the completely different priorities US is freight, Europe is passenger. So I don't think you can really compare the two networks and say one is clearly better.
holowoodman
The European network is far more fragmented than it seems. There are differences in power supply, track width, station and tunnel width and signalling such that you cannot easily cross borders in a train. There are lots of trains that are equipped for multiple signalling standards and have variable axles. But in general, you can only go to the immediate neigbouring countries, as soon as you cross another border you have to change trains. In some countries, like France, you even have concurring standards within the same network. A hypothetical Lisbon-Moscow connection would need to change trains at least 2, maybe 3 times.
I don't think, therefore, that "total track length" has any useful meaning in Europe.
Here is some maps to illustrate my point:
https://commons.wikimedia.org/wiki/File:Europe_rail_electrif...
https://en.wikipedia.org/wiki/Track_gauge_in_Europe#/media/F...
dylan604
> track like this: https://www.youtube.com/watch?v=9X2A2f6E5DI
I can't believe that the train can actually travel down that track. If I had just come upon that track, there's no way I would have ever thought that it was still an operational track. I'm sure the engineers navigating that track have a lot of colorful opinions about it as well
woodruffw
I meant specifically from the perspective of passenger rail, yes. I don't doubt that the US has significantly better freight rail.
(I've crossed borders several times on European trains, and it was never a problem. By contrast, crossing the US-Canada border by train is an exercise in boredom and frustration.)
Aloha
Notably most of the BN part of BNSF was not built with land grants.
KennyBlanken
Incredibly advanced? Bullshit.
Among the G8 we probably have the least-electrified, slowest rail network with the worst Positive Train Control. Probably the most dangerous, too, given how disastrous Precision Railroad Scheduling has been for safety. We also likely have the highest crash and derailment rates.
This is a sad joke: https://en.wikipedia.org/wiki/Positive_train_control#Deploym...
ASES, ACSES, ETMS, CBTM, CBOSS, E-ATC, ITCS, and whatever Union Pacific is using. That's over half a dozen different systems and none of them are inherently compatible with each other - specialized systems are required to tie the systems together on railways that might have trains with different systems.
I'm guessing no other country in the G8 has issues with freight train movement such that trains routinely bisect towns and entire counties for hours or more and force police, fire, and medical services to reroute, as well as require children to crawl underneath the trains (which could start moving without warning) to get to/from school.
Why? Because the feds are not regulating train lengths nor mandating that trains cannot block road intersections for more than a certain amount of time, so the railways do whatever they please.
I'm guessing no other G8 country has problems with the government (federal, state, or local) having no idea what hazardous materials are being shipped and where...no way to look it up, not noticed by the railroad, nothing.
computegabe
What's the argument for the Union Pacific and Norfolk Southern merger [1]? Any rational admin would shoot down the merger immediately as this will create a massive monopoly.
[1] https://www.reuters.com/world/us/union-pacific-talks-advance...
Spooky23
Consolidation reduces competition and increases margins. The rest of the market and the people are sacrificed at the altar of shareholder value.
Aloha
NS and UP do not meaningfully compete today, their networks have very little overlap.
woodruffw
The two compete reciprocally: business can either enter their system or a competitor's for the parts of the rail network that they control, which means bartering power. A single nationwide system would have fewer incentives to compete on pricing.
throw0101c
> What's the argument for the Union Pacific and Norfolk Southern merger [1]?
'Cost savings through synergies which will be passed down to customers.'
(And certainly not shareholders and suits making more money.)
bpodgursky
They share essentially zero miles of track or routes. A move only creates a monopoly if it reduces consumer choice.
No freight customer is deciding "Oh I can either ship from LA to Seattle, or Miami to DC." They are shipping from one fixed location to a different fixed location. These railroads merging does not reduce their choices or give the combined entity more leverage.
throw0101c
> They are shipping from one fixed location to a different fixed location. These railroads merging does not reduce their choices or give the combined entity more leverage.
If someone on the US west coast wants to ship to the US east (or vice versa) they can pit UP against BNSF, and then NS against CSX. There are a few pairs up because of the two negotiating points:
* UP-NS
* UP-CSX
* BNSF-NS
* BNSP-CSX
If the merger goes through you're now at:
* merged-UPNS
* BNSF-CSX
Do you think UPNS will give a cheaper price for a 'half-trip' and you go to their competitor the other half?
You don't think BNSF/CN/CP aren't looking at CSX right now?
liveoneggs
That is a big assumption on your part that east coast ports don't compete with west coast ports
lokar
How about monopsony?
AnimalMuppet
Monopoly? No. Union Pacific plus Norfolk Southern would have a monopoly on single-line end-to-end rail service in the US, true, but that's the kind of thing that you can get a "monopoly" in. BNSF and CSX interchange with each other, after all. And BNSF and CSX could (and almost certainly would) merge in response. So there's no monopoly argument.
Which doesn't mean that a rational regulator would not turn it down anyway. But rational regulators may not be running the show at the moment. UP sees that there may be an opportunity during the Trump administration. (Note "may" - nobody knows whether there is an opportunity, but there is more of a chance than there was under Biden.)
throw0101c
> Monopoly? No.
How about oligopoly then.
If UP/NS happens, we're down from six to five Class Is (ignoring Amtrak):
* https://en.wikipedia.org/wiki/List_of_U.S._Class_I_railroads
Then BNSF/CSX? Or CN or CP go after CSX? That's four.
Do we start seeing the acquiring of Class IIs?
SoftTalker
A regulated monopoly might be appropriate for something like a railroad. It doesn't really make sense for competing railroads to all run their own tracks between the same destinations. We give monopolies to utilities for this reason.
Or maybe all trackage should be government-owned, like streets and highways are. Then any operator can pay a toll and run their trains on any tracks. Traffic coordination is left as an exercise for the reader.
AnimalMuppet
It's already an oligopoly. Most cities only have one or two. Of the few cities that have three or four (Chicago, say), the merger would reduce that by one.
Let's say you want to ship from Denver to Atlanta. In Denver, you hand your stuff over to either Union Pacific or BNSF. In Atlanta, you receive it from either NS or CSX. You only have two options in Denver, and only two in Atlanta. The merger doesn't change that at all.
alexose
The rules that govern American railroads are impressively weird and arcane. They seem almost impossible to unravel at this point. Which is a shame, because so many American cities sacrifice the central corridors of their city to huge railyards and slow-moving freight trains.
I think of Portland, Oregon, where the tracks run north/south along the river. You can see them sitting there empty while you're stuck in traffic on I-5, which runs parallel. Running a commuter rail or light rail on those things would make life a lot less miserable trying to get around the city.
khuey
Portland is kind of weird because it has big yards for two Class Is in town. But they're both right on the waterfront (which is bad for urban transit, since it means half the walkshed is wasted). The BNSF line doesn't go anywhere useful on the west bank of the river. The useful parts of the UP line on the east bank of the river are essentially duplicated by the MAX lines to Expo Center and Milwaukie. The main useful thing you could get out of the Class I lines in Greater Portland is a S-Bahn-like service to Vancouver, WA IMO.
alexose
They said to keep Portland weird, but I don't think this is what they meant :)
I do think an S-Bahn style service would be interesting to pursue. Or even just regular commuter rail. The MAX is too slow for long distance commuting (it's usually faster just to sit in traffic), and it crucially doesn't go into Vancouver yet.
hopelite
It’s because you seem to not understand how America functions. The railroads are largely private enterprises, running on private rail on private land owned by those private enterprises. Many of the cities and towns you may be wanting passenger rail literally only exist because those private rail companies were built and existed there.
Those private enterprises do what is profitable for them, which is largely hauling material in a market where cars that provide degrees of freedom and autonomy, trains simply cannot provide under even the best circumstances.
It also ignores that the passenger trains of places like Europe and Asia are extremely subsidized and no one actually pays the full cost of those rail systems directly; especially not naive Americans traveling to/in Europe being amazed at how nice and cheap it is to travel by rail in Europe, because they are paying a price that is heavily subsidized by the tax slave called the European worker, who also is far more controlled in his actions and freedoms through the mobility limitations that rail imposes.
You can build all the rail you want in America, but there are so many structural and cultural things that are headwinds that it simply does not work.
A rather successful and good bus service that has exploded onto the European market, FlixBus recently tried entering the American market by buying Greyhound (yes, it still existed), but that has not gone well and they’ve been cutting routes and shutting Greyhound stations for reasons that any reasonably informed American could have warned them about.
Car sales are up in America, cars being sold are getting bigger and more expensive in America. Not even any of the wonderful immigrants want to use Greyhound or Amtrak, they bit cars too, especially the European immigrants that like buying trucks the second they hit American soil. They don’t ride Amtrak and Greyhound either, or ride their bikes for that matter.
You can rage against the system all you want, but reality is that there are some forces that will defy any and all wishful thinking and obsessions for reasons that are not actually based in reason or honesty.
We have made large strides towards electric vehicles in America, yet people like you are still not satisfied and it exposes that it really was never about emissions or combustion or pollution, you either wanted to control people’s freedom of movement and/or can’t stand that people would have freedom of movement you don’t have, and want them to also be miserable with you.
mlavrent
> it exposes that it really was never about emissions or combustion or pollution, you either wanted to control people’s freedom of movement
This isn’t the problem- the real problem is that in dense cities, transporting everyone where they want to go via private vehicles just doesn’t work geometrically- see the traffic and parking needs that grow as cities grow assuming private vehicle use only.You end up needing a more space-efficient form of moving people, namely public transit.
holowoodman
Public transit also doesn't scale. Germany, during the Covid years, introduced a cheap country-wide flat fee ticket (~50 bucks per month, all you can ride) for public transit. Which lead to road traffic going down measurably. Which lead to trains and busses being packed, people traveling more and farther on those. Leading to higher cost, degraded service and packed bus stations and rail lines. Building more of those isn't possible geometrically as well, cities are already packed. We are currently, at tremendous cost and effort, moving railway lines and stations underground, like Stuttgart 21, for that reason.
The point is, moving people inherently is bad. Shifting from cars to public transit reduces the badness a little, but you still need infrastructure that scales O(p * s * f), where p is the number of people, s is the average distance travelled per journey, and f is the frequency of journeys. Scaling doesn't change the slightest bit with public transit, you just have a different constant factor which is irrelevant for scalability.
So the solution isn't public transit. It is the avoidance of any unnecessary travel, meaning that we actually need something like a tax on non-home-office jobs and stores that you personally have to visit (as opposed to shopping online). We need better delivery infrastructure so people don't need to travel. We need close-to-home shopping options. Because actually moving goods instead of people scales logarithmically, the network of countrywide, regional, local distribution centers, bigger shops, smaller shops behaves like a tree.
alexose
> you seem to not understand how America functions > you can rage against the system all you want [with] wishful thinking and obsessions > people like you are still not satisfied > you either wanted to control people’s freedom of movement > want them to also be miserable with you
I was just ideating on Portland traffic, dawg
kmeisthax
[dead]
WarOnPrivacy
Wikipedia has a combined map of UP & NS, for some reason.
https://en.wikipedia.org/wiki/File:Union_Pacific_and_Norfolk...
gs17
And ethanol plants, which I was surprised to find out is actually a big deal for rail (or rail is a big deal for ethanol?). I guess I never put much thought into how much of it was being produced and how it was being moved around.
https://www.eia.gov/dnav/pet/pet_move_railNA_a_EPOOXE_RAIL_m...
reactordev
Most industrial plants have rail connections to move bulk materials. It’s more economical than trucks for some stuff. Chemicals, crude oil, cut lumber, all cheaper by rail than by truck - though trucks haul 65%+ of goods in America, they are often used for last mile for those materials.
wombatpm
Chemical plants in general have rail spurs to move products out and raw materials in.
null
qwerty456127
Let them run the railroad, let others run the trains.
Animats
Britain tried that. Network Rail, a unit of the Government, owns the tracks, and 28 or so Train Operating Companies run the trains.
The UK started out with railroads in private ownership. They were nationalized in 1948, as British Rail. Then they were de-nationalized in the 1980s and 1990s. Now, they're being re-nationalized.
None of this is considered a huge success.
petesergeant
I would argue the rail/train ownership split was the least bad bit of this tbh.
CGMthrowaway
What does this comment mean?
cheschire
When one company controls both the trains AND the infrastructure, it results in an unfair advantage over anyone else wishing to use the rail. Commuter trains needing to pull over to let cargo trains from the parent company through, for example.
ghaff
Which doesn't seem like a particular issr with commuter rail (or Northeast Corridor) in general. It is an issue on long distance rail as I understand it especially when passenger trains get off schedule which is often.
CGMthrowaway
I see. So you are suggesting like a Standard Oil or British Rail type breakup?
AnimalMuppet
Unfair? How is that unfair? If I built the track, then I own the track, and I decide what runs on the track. Anybody else thinking they have the right to run on it can get lost. A private railroad line is not an open-access situation. They'll carry your railroad car, but they'll do it in their train. Any argument otherwise is an argument against private ownership, which I view extremely skeptically.
(It's a little different in the case of commuter rail, where there's a contractual arrangement.)
hakfoo
Trying to split infrastructure from operations hasn't worked out well in the UK, and the US version for passengers isn't doing so hot either.
sieabahlpark
[dead]
stockresearcher
The cynical take is that two public company CEOs have run out of ideas for further stock growth and are looking for anything else that will juice the share price in the short term.
Neither company is so inefficient that you can save much of anything by combining the two, and there is only so far you can raise prices before customers switch to trucks or send container ships to different ports of call. With no overlapping territory, you aren't going to cut the number of trains you run and you can't get rid of half your maintenance staff (can you?).
Investment banks will do well running the merger and surely they'll issue debt to finance it. But what kind of growth can we really expect?
hecanjog
Would this have an impact on Amtrak service? The trains in my area often get stopped by freight traffic, and Chicago is pretty much a mandatory change-over point. Could this allow some routes to open up connecting each side of the Mississippi more fluidly in the longer term?
We got a new route (well, a new train running on a segment of an existing route, offering more flexibility for scheduling) from MSP to CHI recently, which has been great.
cheschire
Any time I hear the names of train companies in America, I am always transported back a few decades, playing Rail Baron with my family.
For those that have never heard of that game, please enjoy:
WarOnPrivacy
Ticket to Ride is thought to be RB's natural successor.
ref: https://boardgamegeek.com/thread/94883/rail-baron-comparing-...
DavidPeiffer
I think about a book I found in Texas at a thrift store. Poor's 1925 Railroad Section [1] is a thick book containing details about every (?) railroad in the US such as miles of track, tons hauled, revenue, recent mergers, etc.
I'm not sure whether there is digitized data for railroad performance from the era, but it seemed like it'd be a neat dataset to assemble and research.
https://www.abebooks.com/first-edition/Poors-1925-Railroad-S...
bpodgursky
FWIW, while the instinctive response here will be that this is a monopolistic and anti-consumer play, the reality is that these companies share almost zero routes. There's no real way for railroads to be be competitive unless they are fighting for the same customers (and UP/NS are not).
So, the statements about improved operational efficiency are not totally implausible.
throw0101c
> FWIW, while the instinctive response here will be that this is a monopolistic and anti-consumer play, the reality is that these companies share almost zero routes.
And cable companies also don't have overlapping territory, so from the consumer point of view it did not reduce competition. But from the 'other side' when there are fewer ISPs then tech companies can be squeezed because there are fewer paths to eye-balls overall and each path has more influence because instead of two ISPs have 10% of Netflix customers, now one has 20%:
* https://qz.com/256586/the-inside-story-of-how-netflix-came-t...
Similarly with Amazon and books: while cheap consumer prices may look great, from the book publishers' perspective there's a choke point to readers, and so now the publishers have to consolidate to get market power over Amazon.
And if this goes through, do you think the other Class Is will sit around?
* https://en.wikipedia.org/wiki/List_of_U.S._Class_I_railroads
CSX is mostly east of the Mississippi, while BNSF is west: what about that kind of merger? Or CN or CP doing the same thing?
bpodgursky
Who is the equivalent of Netflix in this relationship? You can't draw fuzzy-wuzzy analogies without actually spelling out the connection.
Freight rail is not an eyeball market, the customers are the ones paying.
throw0101c
Copy-pasting my comment from elsewhere in the discussion:
""" If someone on the west coast wants to ship to the east (or vice versa) they can pit UP against BNSF, and then NS against CSX. There are several pairs up because of the two negotiating points:
* UP-NS
* UP-CSX
* BNSF-NS
* BNSP-CSX
If the merger goes through you're now at:
* merged-UPNS
* BNSF-CSX
Do you think UPNS will give a cheaper price for a 'half-trip' and you go to their competitor the other half? """
In this case it's not even about non-overlap, it's a straight reduction of competition. You don't think BNSF/CN/CP aren't looking at CSX right now?
null
bell-cot
I'd regard Trains magazine as experts in the industry.
That said, they're obviously reluctant to criticize the larger railroads.
theturtle
...it would also completely fuck any remaining Amtrak traffic that isn't on Amtrak-owned track. Norfolk Southern already routinely ignores the actual on-the-books law that prioritizes passenger traffic over freight, and UP isn't much better out west. BNSF we'll just ignore.
jmyeet
Private railroads are a mistake. Let's see what the private railroad industry has done.
The railroads kept reducing their workforce to get an uptick in profitability, so much so that there wasn't enough spare capacity for railroad workers to get paid sick leave of any kind. The railroad workforce were taking industrial action to get paid sick leave. What happened? Congress stepped in to use legislation to end a labor dispute for essential workers to side with the company. Oh and this was under Biden. As an aside, a later deal was made to give them a handful of paid sick days, quietly.
If the railroad caved to 100% of the union's demands it would've cost 6% of the company's profits. Not revenue. Profits.
The other is an industry wide effort called Precision Scheduled Railroads ("PSR"). Basically this means having trains with twice as many carriages and skipping safety chcecks because that costs money.
There are over 1000 train derailments a year. Most of these aren't a big deal. Others are like East Palestine, Ohio a few years ago, which caused a toxic spill in a populated area, something that continues to be an issue [1]. A lot of toxic chemicals are transported by rail. What was insane was the media didn't report on the East Palestine derailment for a week to 10 days despite there being a black toxic plume that could be seen from space. They were finally embarrassed into covering it by social media, particularly Tiktok.
All railroad companies do to maintain and increase profits is cut costs, pretty much like every other company. That means suppressing wages, skimping on maintenance and safety and not investing in fixing anything.
[1]: https://www.npr.org/2024/02/05/1228772709/east-palestine-tra...
Aloha
They built the railroads, often on their own dime, and paid taxes by the fistful for them.
Their competition was subsidized by the general government, and continues to be every year.
If you want to argue that nationalizing railroads should be done for the public good, do that - dont just demonize them, because its not a fully winning argument.
esseph
They spend a LOT on lobbying and politics.
mschuster91
> There are over 1000 train derailments a year.
No surprise when the rails are utter dogshit. Something like [1] - you can clearly see how incredibly uneven the track is - which flies over my youtube feed way too much for my liking would yield immediate regulatory action here in Germany.
These articles are a good reminder of a bittersweet truth: the US has an incredibly advanced and dense rail network, paid for with federal land grants[1]; we just choose not to use it to benefit travelers. That isn't to say that we need a system that's as good as most European countries have; having these railroad companies follow the laws around Amtrak's priority would be a good start[2].
[1]: https://en.wikipedia.org/wiki/Railroad_land_grants_in_the_Un...
[2]: https://www.amtrak.com/content/dam/projects/dotcom/english/p...