Washington, D.C. (October 16, 2025)— Today, the American Chemistry Council (ACC) released a letter signed by 40 chemical manufacturing CEOs urging President Trump and federal regulators to closely scrutinize the proposed merger between Union Pacific (UP) and Norfolk Southern (NS) - the largest rail merger to ever be reviewed by the Surface Transportation Board (STB).
The letter warns that the merger will severely harm competition: “Fewer railroads will mean fewer transportation options, and the merger threatens to make our U.S. manufacturing sites less competitive with the rest of the world.”
If approved, the merger would result in a huge concentration of market power in an industry already dominated by just a few U.S. railroads. Four mega-railroads now control over 90% of U.S. rail traffic. A merger between UP and NS would create a transcontinental railroad that would control almost half of the rail traffic in the U.S. and have outsized control over the nation’s supply chain.
The CEOs cite major problems from past rail mergers such as severe service disruptions, increased costs, and great harm to the economy and supply chain. They caution that the UP-NS merger would likely trigger further consolidation culminating in a nationwide railroad duopoly.
The chemical industry is a cornerstone of American manufacturing and global trade. Our facilities require dependable, competitive rail service to deliver essential materials across the country.
“President Trump has made real progress rebuilding American manufacturing,” Jahn explained. “Let’s not let a monopoly undo it. We need a better deal - one that enhances competition between railroads, lowers costs, grows jobs, and strengthens America.”
Specifically, the ACC and its member companies are calling on the STB to closely adhere to its own merger standards and reject any deal that fails to substantially enhance rail-to-rail competition and improve service.
