‘It’s the unknown:’ Union Pacific, Norfolk Southern seek mega merger as suburbs consider consequences

Railroad giants Union Pacific and Norfolk Southern formally sought federal approval Friday for a seismic merger that would change how freight moves across the region and continent.

“This is huge,” the Metropolitan Planning Council’s Audrey Wennink said. “These are two of the biggest railroads in the country. One does the whole eastern side of the country, and other covers the whole western side.”

Railroad executives said the marriage would create the first transcontinental railroad, connecting the United States from coast to coast, eliminating time-consuming freight handoffs, and moving trains more efficiently by consolidating loads.

Rivals like BNSF Railroad warn the transaction will reduce competition and raise prices.

Meanwhile, suburban leaders in towns crossed by UP are analyzing whether the merger will increase train traffic locally as other consolidations have done.

The railroads’ nearly 7,000-page application to the U.S. Surface Transportation Board “will take some time to review,” Winfield Village Manager Evan Summers said.

But “early analysis shows that UP plans to increase the number of daily freight trains through Winfield by about 8%,” he noted.

Barrington Village President Michael Moran said, “from what we’re hearing, it shouldn’t have a huge impact on freight rail within our community.”

However, “we are concerned that (the railroads) protect the (Metra) commuter trains that run down that line as those are very important to our community. It’s the unknown that’s always the big concern. Once they combine the two, who knows what they do down the line or in the future,” Moran said.

The Surface Transportation Board likely will hold public hearings on the plan, and it should take months before a decision is made.

“Customers deserve stronger, more connected freight rail, and our merger will make that happen,” Union Pacific CEO Jim Vena said in a statement.

The combination would allow trains to run on 50,000 route miles, connecting with 43 states.

BNSF Chief Executive Katie Farmer warned approval “would leave shippers with fewer options — driving higher rates and ultimately higher prices for consumers.”

Wennink, MPC senior director, noted the Chicago region endures chronic traffic congestion from trucks transporting cargo between different rail yards that dot the area.

One question that should be asked is, “how can this reduce truck traffic?” Wennink said.

But another point is “making sure any company that uses rail, which is a sustainable mode of transportation, can keep using it and the rates won’t go up to the point where it’s not affordable for them anymore,” she explained.

Currently, there’s six Class 1 (major) freight railroads in North America: Union Pacific, CSX, BNSF, Canadian National, CPKC, and Norfolk Southern.

Mergers aren’t new to the region. The STB approved joining the Canadian National Railway and smaller EJ & E Railroad in 2008, and the Canadian Pacific and Kansas City Southern railroads in 2023.

Numerous suburbs got involved in debates over both mergers.

Summers said, “while there is not yet a formal coalition, we are actively involved in a lively conversation with other impacted communities as we weigh our options.”

Metra officials said it was too early to offer comments on the plan.