ACD is closely following the proposed Union Pacific-Norfolk Southern merger and its potential implications for chemical distributors and freight rail customers across the country.
In August 2025, Union Pacific (UP) and Norfolk Southern (NS) – two of the largest Class I freight railroad companies – announced an $85 billion merger.
As one of the largest customers of freight rail in both volume and revenue, the chemical industry relies on the rail system to transport products essential to Americans’ health and safety. Freight rail is still – by far – the safest method of shipping, with 99.9% of hazmat chemicals shipped by rail arriving safely at their destination.
Unfortunately, ACD members are typically serviced by only a single rail carrier, subjecting them to high freight rates, capacity constraints, and ongoing service issues. According to ACD’s 2026 rail survey:
reported at least one captive facility served by a single freight rail carrier.
are not always notified when a railroad is unable to meet its own delivery date.
said rail service deteriorated over the previous year.
reported deliveries delayed, on average, by at least one day.
Despite deteriorating service, railroads are rarely held accountable for supply chain disruptions caused by extensive monopolies and an outdated regulatory system.
ACD remains deeply concerned that approval of this rail merger would only exacerbate existing challenges and further expand the rail industry’s market power and profit margins to the detriment of its customers.
On August 18, 2026, the Surface Transportation Board (STB) lifted the UP/NS merger proceedings out of abeyance and established a procedural schedule. This followed the Board’s January 16, 2026 rejection of the original application and its request for additional information after the application was refiled.
On August 6, ACD joined the American Chemistry Council, American Fuel & Petrochemical Manufacturers, The Fertilizer Institute, and the National Industrial Transportation League in a joint motion requesting that the STB deny the merger application. The groups argued that the applicants had failed to make a prima facie case because necessary information had not been provided.
On September 18, the STB denied the motions for summary denial. The Board stated that the filings raised important questions and issues but that additional evidence and argument would assist its review. The decision allows the proceeding to continue and does not constitute a determination on the merits of the proposed transaction.
Under the STB’s rules, any merger must protect and enhance competition and serve the public interest. Given the rail industry’s already high level of concentration and its continued failure to meaningfully improve service, ACD has raised concerns about whether the proposed merger would meet those standards.
If you have questions or would like to get involved in ACD’s advocacy around this issue, please contact Nicholas Breslin at nbreslin@acd-chem.com.
ACD members can share their experiences and perspectives with the Surface Transportation Board during the proceeding.
Electronically file a letter sharing your views with the Surface Transportation Board.
Docket No. FD 36873
File with the STBIf you would prefer to have ACD submit your views, send your information to Tyler Farrar.
Contact Tyler FarrarExplore ACD resources, regulatory updates, and background information on the proposed transaction and freight rail policy.