A coalition of business groups, rival railroads, and labor organizations has publicly opposed Union Pacific’s proposed $85 billion merger with Norfolk Southern, ahead of the companies’ anticipated filing of a revised application with the Surface Transportation Board (STB). The planned merger, which would create the first freight rail operator spanning the entire U.S. from coast to coast, is viewed by opponents as a threat to competition and increased costs across multiple sectors.

The coalition, which announced its opposition on Wednesday, includes prominent industry and labor stakeholders such as the American Chemistry Council, the American Farm Bureau Federation, the Teamsters Rail Conference, BNSF Railway, CPKC Railway, the Alliance for Chemical Distribution, the National Industrial Transportation League, and the Vinyl Institute. These organizations argue that the merger could significantly reduce competition in the freight rail market, potentially leading to higher transportation costs for manufacturers, farmers, and consumers.

Union Pacific and Norfolk Southern have maintained that the merger would improve operational efficiency by streamlining services and eliminating interchange delays, particularly in major freight hubs like Chicago. Proponents of the deal contend the combined network would enhance service reliability and create a more seamless freight rail system across the country.

Opponents, however, contend that the consolidation would weaken competitive dynamics within the industry. Rival railroads in the coalition worry that the merged entity’s extensive network could dominate freight routes, limiting alternatives for shippers. Labor groups also express concerns over possible job reductions and the potential impact on working conditions.

The merger, announced earlier this year, is one of the largest proposed transactions in the rail industry and is subject to review by the STB, the federal regulator responsible for overseeing rail mergers and ensuring they are in the public interest. The revised application to be filed imminently will provide additional details in response to regulatory scrutiny and prior feedback.

Norfolk Southern and Union Pacific have not yet issued comments regarding the coalition’s opposition or the upcoming filing. The STB’s review process will assess the potential effects on competition, service quality, pricing, and employment before permitting the merger to proceed.

The outcome of this regulatory review could have broad implications for the U.S. freight rail landscape, impacting supply chains, shipping costs, and industry competition nationwide.