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Union Pacific, Norfolk Southern explore cross-continental railroad merger, source says

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  • Union Pacific shares down, Norfolk Southern shares up
  • Shippers seen opposing more consolidation of freight railroads
  • Turmoil at Norfolk Southern includes derailment, boardroom fight
NEW YORK, July 18 (Reuters) – Union Pacific (UNP.N), opens new tab, the largest U.S. freight railroad operator, is exploring a possible acquisition of Norfolk Southern (NSC.N), opens new tab to create a $200 billion coast-to-coast rail network, a person familiar with the matter said.

Talks are in early stages, the person said, with no guarantee talks will progress or that any deal would pass what would be expected to be a lengthy, detailed regulatory review. The two companies declined to comment.

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Any deal to unite two of the six largest freight rail operators in North America is likely to draw intense regulatory scrutiny. Major shippers in the steel, chemical and grain industries are expected to lobby against any further concentration in an industry that has consolidated from over 100 Class I railroads in the 1950s to just six today.

Union Pacific shares fell 2.7% in Friday afternoon trading, while Norfolk Southern rose 1.52%.

A combination would mark a shift in the U.S. freight rail landscape, creating a single-line network stretching from coast to coast, changing the current divide between western and eastern regional operators.

Norfolk is recovering from a tumultuous past couple of years that included the firing of its previous CEO amid ethics investigations, a boardroom battle with activist Ancora, and a train derailment that cost the company about $1.4 billion.

CONCENTRATION

A merger between Union Pacific and Norfolk Southern would create the first modern West-to-East single-line freight railroad in the U.S.

Earlier this year, Union Pacific CEO Jim Vena said a transcontinental merger would be good for customers, eliminating the need for interchanges between carriers in Chicago — a longstanding bottleneck — and reducing costly delays for shippers.

But critics warn that such consolidation could reduce competition, a possible concern for regulators. With fewer major players in the market, shippers may face higher costs and diminished service options.

“We suspect certain shipper groups could get vocal on the perceived lost competition a merger would bring,” Barclays analyst Brandon R. Oglenski said.

Discussions between the two operators, first disclosed by Semafor, spurred speculation that competitors would also consider concentration.

“History teaches that mergers and acquisitions within the railroad industry will inspire and motivate additional M&A,” said Mike Steenhoek, executive director of the Soy Transportation Coalition.

That happened earlier this decade when Canadian Pacific offered to acquire Kansas City Southern, which prompted CP’s main competitor – Canadian National – to submit their own offer to acquire Kansas City Southern.

Ultimately the Canadian National offer was not allowed to proceed, and Canadian Pacific did acquire Kansas City Southern in 2023 – creating the first railroad to link Canada, the U.S. and Mexico.

In 2024, Union Pacific led the industry with $24.3 billion in revenue, followed by BNSF (privately held, owned by Berkshire Hathaway) (BRKa.N), opens new tab, CSX (CSX.O), opens new tab, Canadian National (CNR.TO), opens new tab, Norfolk and Canadian Pacific Kansas City (CP.TO), opens new tab.

“The energy and momentum toward the remaining two U.S. based Class I railroads – BNSF and CSX – pursuing a merger would be considerable,” Steenhoek said.

A regulatory decision could take 16 to 22 months, with merging carriers required to notify the Surface Transportation Board three to six months before filing an application, followed by a year-long evidentiary review and a final ruling within 90 days, Oglenski said.

A potential Union Pacific acquisition of Norfolk Southern could have material synergy, he said.

“Any deal would face serious review from regulators,” said Emily Nasseff Mitsch, equity analyst at CFRA.

Reporting by Sabrina Valle and Lisa Bartlein in New York; Editing by David Gregorio

Our Standards: The Thomson Reuters Trust Principles., opens new tab



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TransRail Connection announces ninth edition dedicated to rail, urban mobility

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Source | TransRail Connection

First Connection, an agency specializing in the organization of trade fairs and conferences, announces the ninth edition of TransRail Connection, an event dedicated to technological innovations for the rail industry and urban mobility, of which composite materials play a role. The event takes place Oct. 14-15, 2025 in La Communale (Saint-Ouen) in France.

TransRail Connection, established in 2011, has become a strategic crossroads for players in the industry, bringing together nearly 500 participants each year — including 400 visitors and principals (manufacturers, operators, equipment suppliers, infrastructure managers) and 70 exhibitors representing innovative companies, startups, laboratories and research centers.

TransRail Connection’s encourage exchanges, stimulate collaboration and brings to light concrete technological solutions that meet the current and future challenges of the rail sector. The event highlights a range of expertise and innovations in fields as varied as on-board technologies, IoT, Big Data, electronics, engineering, maintenance, advanced materials and additive manufacturing.

At the heart of this year’s event will be a program of conferences and round tables exploring the three major themes shaping the future of railways: AI applied to rail, innovative materials and new industrial processes, and decarbonization solutions. Key players in the sector such as SNCF, Alstom, RATP, Siemens Mobility, Keolis,Transdev, Hitachi Rail and Colas Rail will be taking part in the event as both visitors and speakers. These experts will be sharing their visions and debating the transformations taking place between infrastructure modernization, the ecological transition and the digitalization of systems.

TransRail Connections’s Innovation Competition will also offer a selection of startups the opportunity to present their disruptive technologies for manufacturers in the sector. A springboard for these young companies, this competition is part of the drive to renew and accelerate the rail ecosystem.

Learn more about the event here.





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United Kingdom Rail Industry Enters New Chapter with Trenitalia’s Transition from c2c Operator to Visionary Partner in High-Speed and Sustainable Mobility Expansion

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Monday, July 21, 2025

The United Kingdom has officially taken back control of the c2c rail franchise, marking a pivotal moment in the nation’s ongoing rail modernization strategy. As operations transition to public ownership under c2c Railway Limited, Trenitalia—part of Italy’s FS Group—concludes its direct management role while reaffirming its long-term commitment to the UK rail sector. Rather than signaling a withdrawal, this shift reflects a strategic evolution, with Trenitalia now focusing on high-impact infrastructure partnerships, technological innovation, and sustainable high-speed connectivity across Europe. The move aligns with the UK’s broader vision of building a smarter, greener, and more integrated transportation network that enhances mobility, boosts regional economies, and delivers long-term value to passengers and communities alike.

Trenitalia Celebrates Transformative c2c Chapter as UK Franchise Returns to Public Ownership

Effective Sunday, 20 July, the c2c rail franchise has officially come under public control, now operating as c2c Railway Limited under the oversight of the UK Department for Transport. This marks the conclusion of Trenitalia’s direct operational role in managing the route, but not its departure from the UK rail sector. Instead, the company sees this milestone as the beginning of a new strategic role in shaping the future of British rail.

Trenitalia, part of Italy’s FS Group with over 100 years of rail expertise, reflects proudly on its stewardship of c2c since acquiring the franchise in 2017. Over the past eight years, the company introduced pioneering technology, elevated customer service, and delivered a modern rail experience for millions of passengers. This transition signifies not a retreat, but a repositioning—from operator to long-term strategic partner—poised to support the UK’s evolving rail strategy under Great British Railways.

A Legacy of Innovation and Service Excellence

Trenitalia’s UK chapter with c2c has been marked by continuous investment in operational excellence and passenger-centric improvements. The operator has delivered more than 935,000 services and facilitated over 315 million passenger journeys, consistently earning accolades for punctuality and reliability. The most recent Transport Focus survey awarded c2c a 94.5% customer satisfaction score—higher than any other train company in the UK.

This performance was powered by a wide-ranging investment programme. A key milestone was the deployment of 10 newly built Alstom electric trainsets, marking a £100 million investment aimed at modernising and upgrading the fleet. c2c also became the UK’s first national rail route to adopt a fully contactless payment system, now processing over 10,000 daily taps. These technological enhancements, alongside upgrades to station facilities and streamlined ticketing through the digital PICO platform, have modernized the passenger journey from start to finish.

Strengthening the Regional Economy and Communities

Beyond performance metrics, Trenitalia’s impact has been felt throughout the East of England. c2c’s services are vital to more than 25,000 daily commuters into London, with regional rail travel contributing an estimated £590 million annually to local businesses. By reducing travel time, improving reliability, and enhancing customer experience, c2c has been a key driver of regional growth.

Fare compliance initiatives recovered nearly £600,000 from fare evasion in the last year, further reinforcing the system’s integrity and financial health. Additionally, the franchise achieved multiple safety and security certifications, including those from the White Ribbon campaign, Secure Stations Scheme, and national safeguarding programs—demonstrating a clear commitment to passenger and staff welfare.

Targeted government co-investments, such as the Station Improvement Fund and the Customer & Communities Investment Fund (CCIF), further empowered c2c to enhance the station environment and improve accessibility, making rail travel more inclusive and enjoyable for all.

A Continued Commitment to the UK Rail Future

Trenitalia underscores its ongoing commitment to the UK railway sector. Far from exiting, the company is expanding its focus on strategic partnerships and infrastructure development. Most recently, Trenitalia submitted an application to operate high-speed services between London and Paris, a move aligned with its broader mission to create a more sustainable and interconnected European rail network.

As a member of the FS Group, Trenitalia is leveraging its vast international experience to support the long-term vision of Great British Railways. This includes working closely with local authorities, universities, and innovation hubs to share knowledge and strengthen the UK’s mobility ecosystem.

Trenitalia’s repositioning reflects the dynamic nature of the rail sector and its own adaptability. While the mode of engagement may shift, the mission remains unchanged: to deliver efficient, safe, and future-ready rail services that benefit passengers, communities, and economies.

The United Kingdom has reclaimed the c2c rail franchise as Trenitalia transitions from operator to strategic partner, aiming to advance high-speed, sustainable mobility across Europe. This marks a bold step in the UK’s drive toward a smarter, greener rail future.

Looking Ahead with Pride and Purpose

As the c2c franchise returns to public hands, Trenitalia expresses heartfelt gratitude to its employees, customers, and partners who helped make its journey in the UK impactful and innovative. The company views this moment as a celebration of what has been accomplished and a springboard toward future contributions to Britain’s rail transformation.

With a track record defined by investment, resilience, and collaboration, Trenitalia remains a committed ally in the journey to build a smarter, greener, and more integrated transportation future across the UK and beyond.



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Resurrect HS2 northern leg to boost rail freight capacity, say UK manufacturers | Rail industry

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Manufacturers will press ministers today to resurrect plans for a high-speed rail line reaching Leeds and Manchester as part of a large strategic investment to get lorries off Britain’s roads and cut emissions.

Business lobby group Make UK and Barclays Corporate Bank said research showed companies believe the move would significantly increase passenger numbers and free up capacity for rail freight on existing lines.

A survey of 200 manufacturers showed that nine in 10 believe the original high-speed rail line HS2 should still go ahead, while a similar number said there should be greater investment in faster connections between Liverpool, Manchester, Sheffield, Hull and Newcastle.

HS2 has suffered huge cost overruns and is being overhauled under new management. The transport minister, Heidi Alexander, said this year that problems with the line would delay its opening beyond 2033.

Many of Labour’s regional mayors support moves to extend the line to Manchester to boost economic growth across the north of England.

However, Keir Starmer, the prime minister, has indicated there is little cash available to extend HS2, even under “HS2-lite” plans that would have allowed for more capacity north of Birmingham.

Verity Davidge, the director of policy at Make UK, said: “It’s clear that the current levels of rail capacity aren’t suitable for the levels of freight traffic the government is predicting in the future.

“As a result, if industry is to make greater use of rail then we need the extra capacity which a high-speed link for passenger traffic would free up.

“This would provide a valuable opportunity to invest in multi-mode hubs which would improve connectivity between our major ports and better integrate road and rail routes through the spine of the country.”

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The survey found that road is overwhelmingly the main mode of transport for nine in 10 manufacturers, with six in 10 regarding road investment as critical for their just-in-time operations. This compares with just under half (46%) for investment in ports and just under four in 10 for rail.

Lee Collinson, the head of manufacturing, transport and logistics at Barclays UK Corporate Bank, said: “Upgrading and integrating our road, rail and port systems is crucial for boosting productivity, decarbonising transport and supporting long-term competitiveness.”



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