CPKC reviews UP-NS rail merger filing with STB

Executive Summary

• Canadian Pacific Kansas City Ltd. (CPKC) issued a statement regarding the merger application filed by Union Pacific (UP) and Norfolk Southern (NS) with the Surface Transportation Board (STB) on December 19, 2025.
• CPKC intends to thoroughly review the application to determine if it complies with the STB's 2001 Major Merger Rules and serves the public interest.
• The company warns that the proposed merger is unprecedented in scale and poses significant risks to customers, employees, and supply chains, while encouraging stakeholders to file comments with the STB.

Key Details

• Filing Date: The UP-NS merger application was formally filed with the STB on December 19, 2025.
• STB Timeline: The STB must determine by January 18, 2026, whether to accept the application for consideration or reject it as incomplete.
• CPKC's Review Criteria: CPKC is evaluating the application based on:
  • Compliance with the STB's 2001 Major Merger Rules.
  • Whether the proposal provides an adequate basis for evaluating public interest consequences.
  • Consistency with the public interest.
• Risk Assessment: CPKC describes the merger as "unprecedented in scale and scope," stating it would "radically and permanently change the United States rail network."
• Identified Risks: The company highlights "extraordinary and far-reaching risks" including:
  • Limitations on rail shipping options for customers.
  • New risks of rate pressures.
  • New risks to service quality.
  • Negative impacts on competition.
• Stakeholder Engagement: CPKC encourages shippers, receivers, associations, governments, and other stakeholders to examine the application and file their own comments with the STB regarding the impact on their businesses.
• CPKC's Role: CPKC will remain an active participant in the STB review process and anticipates submitting its own comments in accordance with the procedural schedule adopted by the STB.

Notable Quotes

• "Approval of this merger is not inevitable."
• "The proposed UP-NS merger, unprecedented in scale and scope, would radically and permanently change the United States rail network."
• "If approved, the merger would pose extraordinary and far-reaching risks to customers, rail employees, and broader supply chains."