The leader of BNSF Railway has warned that the proposed deal to combine two of its rivals risks pushing up costs for customers — a sign of industry opposition to the largest tie-up in U.S. railroad history. BNSF chief executive Katie Farmer said on January 14 that the industry should question whether it is an “accurate premise” that Union Pacific’s proposed $72 billion takeover of Norfolk Southern will eventually lead to double-digit growth in shipping volume for the combined company.
Farmer suggested the combined company would raise prices if that growth fails to materialize, pointing to Union Pacific’s rising revenue per carload over the last decade even as freight volumes declined. Comments from the leader of the Berkshire Hathaway–owned railroad highlight emerging unease over the proposed combination. If allowed to proceed, the deal would create the country’s first continuous transcontinental railroad by linking Union Pacific’s Western network with Norfolk Southern’s East Coast tracks. The transaction is valued at $85 billion on an enterprise basis.
“We knew our competitors would oppose the merger, and we understand why,” Union Pacific chief executive Jim Vena said in a statement. “This is a transformational merger that will inject more competition into the railroad industry and force them to enhance their service, reduce their price, or do both.” “While our opponents appear to be stuck in the past, we are taking a bold step that will reinvigorate the rail industry and make the entire U.S. supply chain stronger,” Vena added. “We are not content to compete for share of a shrinking railroad industry.”
From a supply chain perspective, the U.S. Class I rail map is built around BNSF and Union Pacific in the West, Norfolk Southern and CSX Transportation in the East, and Canadian National together with Canadian Pacific Kansas City across the Canada-Mexico spine. Approval by the Surface Transportation Board (STB) hinges on tests of competition, service quality, safety and transition guarantees. The deal’s impact on intermodal container traffic, agricultural volumes (Cargill, ADM), energy flows (Exxon, Phillips 66) and retail logistics (Walmart, Amazon) will sit at the center of regulatory scrutiny throughout 2026.
