To better compete with Canada’s transcontinental railroads, efficiencies within the trucking industry, and to capitalize on a more relaxed regulatory environment, the railroad industry is entering into a consolidation phase with the major operators all reportedly in play. On the heels of the 2023 merger between Canadian Pacific and Kansas City Southern which connected Canada, the US and Mexico with the first single-line railway, Union Pacific and Norfolk Southern are pursuing a merger that would create the first coast-to-coast railway system in the US. The tie-up between Norfolk Southern and Union Pacific raised the possibility of further consolidation in the industry with investors eyeing a merger between CSX and BNSF, or with CPKC. While mergers might satisfy shareholders and activist investors, industry insiders see the trend creating more inefficiencies. …Freight Rail Customer Alliance is opposed to further consolidation given that past mergers have resulted in higher transportation costs and unreliable service for customers.
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