The merger between Norfolk Southern and Union Pacific, if approved, will involve the technological and operational integration of critical systems.
A practical example would be to unify traffic control and dispatch systems into a single digital platform, integrating NetControl with Norfolk Southern’s networks to coordinate trains in real time, reduce bottlenecks, improve safety, and optimize assets.
The combination of Norfolk Southern and Union Pacific would create the first transcontinental railroad in the United States. The resulting network would exceed 50,000 miles, span 43 states, and have access to 10 international crossings and nearly 100 ports.
Regarding the transaction: the merger was valued at approximately $85 billion. The agreement assigns Norfolk Southern a similar implied enterprise value and would result in a combined company estimated at more than $250 billion through a stock and cash transaction.
Technology integration
On July 28, 2025, Union Pacific and Norfolk Southern signed a merger agreement to create the first transcontinental railroad in the United States, together with Ruby Merger Sub 1 Corporation and Ruby Merger Sub 2 LLC, subject to regulatory approval expected in 2027.
During the process, management teams emphasized the integration of information systems and operational technology. Union Pacific’s previous transition to the NetControl cloud platform is presented as a benchmark for reducing risks, improving data visibility, and unifying digital operations.
Risks
Union Pacific transports hazardous materials such as crude oil, ethanol, and toxic inhalation materials, including chlorine. These operations involve significant risks in the event of release or combustion, amplified by the legal obligation to provide public rail service.
At the same time, the company relies on its own and third-party information technology systems. Failure to invest in platforms such as PTC, NetControl, or control systems in a timely manner can lead to operational disruptions and competitive disadvantages.
Following the merger, Norfolk Southern–Union Pacific would compete with BNSF Railway and CSX. The rivalry would focus on continental networks, operational efficiency, pricing, service reliability, technology integration, and port access in a highly regulated and concentrated railroad market.