Is the Norfolk Southern–Union Pacific Merger Texas’s Next Big Win?

Texas can become a central axis in America’s freight network and expand its already significant manufacturing sector.

Texas Insider Report: AUSTIN, Texas — Texas’s economy has long been the envy of the nation. From oil and energy innovation to manufacturing, logistics, and technology, the Lone Star State has long been a model of growth, resilience, and opportunity. Now, another transformative development could soon join that list: a historic rail merger poised to supercharge Texas’s economic engine.

Announced in July 2025, the proposed merger between Union Pacific (UP) and Norfolk Southern (NS) would form the nation’s first transcontinental rail network under a single carrier – one capable of strengthening America’s supply chains, spurring new economic growth, and improving transportation safety from coast to coast.

President Trump has already been out voicing his support for the merger. Some of the usual critics, of course, are sounding alarms. They are raising the concerns that get brought up around most any corporate merger: issues with potential monopolies, worry about higher shipping rates, and job losses among union workers. And while those concerns deserve review by the Surface Transportation Board, the federal agency tasked with the economic regulation of freight rail, the facts of the combination of Union Pacific and Norfolk Southern creating the first truly U.S. based transcontinental railroad tell a different story. This merger stands to deliver clear, measurable benefits for Texas and Americans across the country.

Why This Merger Matters for Texas
Connecting east to west, north to south, and linking border crossings and ports to the nation’s interior, Texas already serves as the crossroads of America’s freight network. With both Union Pacific and Norfolk Southern operating in the state, freight rail directly supports more than 122,000 Texas jobs and contributes $8.7 billion in labor income and $13.6 billion to the Gross State Product.

Yet despite rail’s advantages, interchange delays between carriers, common in a multi-operator system, often slow supply chains and inflate costs for shippers and consumers alike. The UP-NS merger would eliminate many of these inefficiencies, creating seamless routes and reducing transit times across the state. The result: lower costs, faster deliveries, and a more reliable transportation option for local businesses.

Local leaders see the potential clearly. In a recent op-ed, Keller Mayor Armin Mizani praised the merger as a pro-growth, pro-Texas solution that strengthens infrastructure, creates new jobs, and keeps our state competitive in a global economy. Texas-based regional railroad company Rio Grande Pacific also voiced its support, noting that the combined network will “unlock efficiencies that benefit all stakeholders – from large and small shippers, communities and consumers, and railroads and logistics providers.”

Responding to critics, Tom Giovanetti, president of the Institute for Policy Innovation in Dallas, addressed monopoly concerns head-on, arguing in the Fort Worth Star-Telegram that instead of asking for handouts, UP AND NS are “investing their own capital to create a system that reduces public costs, strengthens supply chains, and keeps America competitive.”

Boosting Texas Manufacturing & Trade
Texas leads the nation in manufacturing employment, with over 1 million Texans producing semiconductors, telecommunications equipment, and communications technology. But to fully realize President Trump’s America First reshoring agenda, Texas must continue to expand its manufacturing capacity and remain the most competitive place in America to build, produce, and distribute.

A unified transcontinental railroad gives Texas exactly that advantage. With fewer chokepoints, integrated coast-to-coast service, and enhanced access to foreign markets, the Lone Star State would become the beating heart of a revitalized U.S. manufacturing base. More investment in rail yards, intermodal terminals, and industrial facilities would surely follow, along with new, good-paying, long-term jobs that will keep Texas families thriving.

Importantly, Union Pacific has made commitments to retain all union workers employed by both companies. After securing written assurances from Union Pacific CEO Jim Vena, the rail industry’s largest union, SMART-TD, has come out in support of the merger. This commitment to workers reflects both UP’s and NS’s track records of community investment; together, they have contributed $38 million to local charities and civic organizations last year alone.

A Strategic Opportunity for the Lone Star State
The proposed Union Pacific–Norfolk Southern merger offers Texas an opportunity to build on decades of economic success by using its geography, scale, and ambition to make good on President Trump’s America First promises. Rather than being a passive corridor, Texas can become a central axis in America’s freight network and expand its already significant manufacturing sector. For Texans, the impact of the STB’s decision is clear: a transcontinental rail network promises to further speed Texas’s robust and resilient economic growth.