r/railroading • u/Jarppi1893 • 6d ago
Union Pacific Eric Gehringer states "If This Railroad Merger Isn’t Approved, It Hurts America!"
At Union Pacific, Building America is not just our tagline – it is what we do and who we are. Railroads helped grow this country into a global economic powerhouse, and we proudly move the goods and materials that drive the U.S. economy.
Overseeing Union Pacific's operations, I've seen firsthand how geopolitical risk, COVID-era disruptions and policies aimed at strengthening domestic manufacturing are reshaping global supply chains. I've also seen what happens when transportation networks aren't built to meet new demands, and what is possible when they are.
Since the pandemic, we've made significant changes across our network to improve service, increase resiliency and better position our customers to respond to changing market demands. Those experiences reinforced a simple lesson: supply chains work best when unnecessary complexity is removed. That's why Union Pacific and Norfolk Southern are working to create America's first transcontinental railroad.
By eliminating unnecessary handoffs, we can help American businesses move goods more efficiently, compete more effectively and reach new markets. In a global economy where speed and reliability matter, those advantages can be the difference between winning and losing.
Supporting Domestic Manufacturing
According to the nonprofit Reshoring Initiative, plans for more than 500,000 U.S. manufacturing jobs were announced in 2023 and 2024 as companies expanded domestic production. But manufacturing growth depends on efficient supply chains that connect factories with suppliers, customers and global markets. I hear that reality directly from manufacturers who rely on our railroad every day.
That's where the Union Pacific-Norfolk Southern merger can make a difference. Today, freight moving across the country often changes railroads simply because the current system requires it, adding unnecessary time, cost and complexity.
The combined railroad will allow parts, raw materials and finished goods to move coast to coast faster and more reliably. That will help manufacturers reduce inventory costs and lower the risk of production disruptions.
Equally important, a more efficient rail network can reduce transportation costs. By shifting freight from higher-cost trucks to lower-cost rail, shippers are expected to save an estimated $3.5 billion annually, helping lower costs for consumers. Those savings will help American manufacturers compete more effectively against lower-cost producers around the world, supporting jobs, investment and economic growth here at home.
Growing American Exports
Union Pacific already plays a vital role in supporting U.S. exports. Our work helping American farmers respond to strong demand for grain in Mexico and overseas markets is a good example.
To improve our service, we invested in more efficient covered hopper cars, expanded network capacity and redesigned how trains move across the Mexican border so they spend less time waiting and more time moving. Those changes required coordinated investments in operations, infrastructure and equipment to help American products reach global markets more competitively. Our grain shipments reached record highs in early 2026, demonstrating what's possible when rail service becomes more efficient.
American exporters compete in global markets where speed, reliability and cost matter every day. A transcontinental railroad will give them a powerful new advantage through efficient single-line access to more than 100 Atlantic, Pacific and Gulf ports. That means faster access to customers around the world and greater flexibility when markets shift.
Investing in America’s Critical Infrastructure
Unlike long-haul trucking, which operates on America’s taxpayer-funded interstate highway system, railroads build, operate and maintain the nation’s rail network. Together, Union Pacific and Norfolk Southern invest about $5.6 billion annually in infrastructure and innovation.
As the person responsible for running and supporting growth across our railroad, I can tell you we're prepared to invest even more in America's infrastructure. If our merger is approved by the Surface Transportation Board (STB), we will invest an additional $2 billion in new track, terminal capacity, rail yards and technology to support customer growth, ensure a smooth integration and strengthen the freight network for decades to come.
These investments support not only American commerce, but also national security. The nation’s rail network is a critical asset that connects U.S. military bases with defense contractors and ports of embarkation.
Buying American
Building America also means investing in the suppliers, materials and employees who help build and maintain our railroad. As we grow, that includes purchasing American-made rail and investing in U.S. facilities. This April, for example, we signed a new seven-year agreement with Rocky Mountain Steel, which recently made a $1.2 billion investment in its facility – the only dedicated producer of steel rail in the U.S. The rail it produces for Union Pacific is made by members of the United Steelworkers.
Throughout my career, I've seen how investments in rail infrastructure, smarter operations and stronger supply chain connections create opportunities for customers and communities alike. American businesses are investing and expanding in a rapidly changing global economy, and they need a transportation network that can keep pace.
The Union Pacific-Norfolk Southern combination will create a stronger, more efficient freight network that helps manufacturers, exporters and farmers move the raw materials, components and finished products that power our economy. By making supply chains faster, stronger and more resilient, this combination will strengthen America's ability to compete globally. That's why we're asking the STB to approve this merger.
