by Manal Barakat, SeaNewsEditor

The US railroad Union Pacific has announced its intention to acquire Norfolk Southern in a USD 85 billion deal. If completed, the merger would create the first transcontinental railroad network in the United States.

This merger between two of the largest railroads in the country aims to combine Union Pacific's extensive rail network in the West with Norfolk Southern's tracks in the East, resulting in a combined network of over 50,000 miles across 43 states, with connections to major ports on both coasts.

The railroads argue that this merger would streamline the delivery of raw materials and goods nationwide by eliminating delays when shipments are transferred between railroads.

However, the largest rail workers' union in the US, SMART Transportation Division (SMART-TD), has expressed its opposition to the merger, citing concerns about Union Pacific's labour practices.

In a statement, the union urged all parties to use "measured scepticism" when evaluating the potential impact of the merger on rail workers, safety, service quality, and the long-term health of the freight rail industry.

According to a CNBC report, SMART-TD "will make its case to block the merger before the Surface Transportation Board, which needs to grant approval for the deal."

Analysts claim that the deal, if approved, could trigger a final wave of rail mergers across the country, with the remaining major American railroads BNSF and CSX as they will face competitive pressure.

Additionally, Canadian National and CPKC, which have rail networks spanning Canada and parts of the U.S., may also become involved.