ATLANTA — A proposed merger between Atlanta-based Norfolk Southern and Nebraska-based Union Pacific has hit a roadblock after federal regulators deemed the application incomplete.
The Surface Transportation Board says the merger filing lacks projections on market share and the potential impact on competition. The $85 billion deal would create the nation’s first transcontinental railroad company.
Regulators say the companies can refile a revised application at a later date, but the decision slows efforts to fast-track the merger.
Norfolk Southern executives have promoted the deal as essential for growth. Speaking recently to Atlanta business leaders, Executive Vice President and Chief Commercial Officer Ed Elkins said a transcontinental railroad would benefit Georgia businesses.
He said it would give rail-served Georgia companies “a competitive edge in capturing new markets,” and called the proposal a historic move that would transform American transportation and benefit the state.
If approved, the merger would result in the nation’s first unified transcontinental railroad company, with headquarters based in Nebraska. Elkins has acknowledged that staff reductions would occur at the Atlanta office but emphasized Georgia’s continued importance to the company.
“I want to be clear, this state is essential to the success of our coast-to-coast network and we’re not pulling up track,” Elkins said.
He added that in some areas, Norfolk Southern is expanding infrastructure, pointing to the Georgia Port Authority’s Blue Ridge Connector, which is expected to open in 2026.
Federal regulators say the application’s lack of data on market share and competition impacts must be addressed before the proposal can move forward.
WSB Radio’s Jonathan O’Brien contributed to this story.