Imagine a single railroad company that could move freight seamlessly from the ports of Los Angeles to the ports of New York without handoffs, interchange delays, or needing to switch carriers mid-journey.

That's the promise behind the proposed merger between the Union Pacific and Norfolk Southern railroads. If the deal is approved, it will create the first single-line transcontinental railroad in U.S. history, spanning more than 50,000 miles across 43 states and nearly 100 ports.

Supporters say this could make rail a more serious competitor to long-haul trucking, lowering costs and improving supply chain efficiency. Critics say it risks concentrating too much power in too few hands in an industry where four railroads already control more than 90% of U.S. freight.

Earlier this month, regulators hit the reset button. The Surface Transportation Board (STB) rejected the merger application - not on its merits, but because the paperwork was incomplete.

In this episode of Art of Supply, Kelly Barner covers:

• What Union Pacific and Norfolk Southern are proposing, and why it would be historically significant
• The arguments for the merger, including efficiency, cost, and competition with trucking
• The arguments against it, from labor, shippers, competitors, and policy advocates
• Where the Surface Transportation Board fits in, and what the January 2026 rejection means from an approval and timeline standpoint

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