America’s economy runs on chemistry. From the medicines we take and the cars we drive to the energy we use and the food we grow — chemistry is at the heart of it all. But none of it moves without a competitive and reliable freight rail network. For the chemical industry, transportation isn’t just a logistical concern — it’s a lifeline. And today, that lifeline is under threat.
The proposed merger between Union Pacific and Norfolk Southern would create the largest railroad in the U.S., controlling nearly half of the country’s rail traffic. This isn’t just another business deal. If approved, it would further concentrate market power in an industry already dominated by just four mega-railroads controlling 90 percent of the market. It runs counter to President Trump’s executive order aimed at eliminating anti-competitive regulations and preventing monopolies.
While Union Pacific-Norfolk Southern claim the merger will help, it’s a bad deal for America because the facts tell a different story. This deal would lead to a monopoly — crushing competition, raising costs and undermining the progress President Trump has made on American manufacturing, farming and energy production.
Producing and moving more chemistry here at home, is key to growing the manufacturing economy. In order to lead in global trade, increase jobs across the country and fix broken supply chains, transportation for American-made goods must improve. That starts with a freight rail system that delivers for U.S. manufacturers — one that’s competitive, reliable and built to support growth.
Chemicals are the second largest source of rail revenue. In 2024 alone, Class I railroads moved 2.2 million carloads of chemicals, generating $13.3 billion in revenue. Every sector of the manufacturing economy depends on chemical products, and reliable rail service is essential to delivering them safely and efficiently.
Unfortunately, railroad consolidation has already led to higher costs and worse service. Rail rates have increased more than 40 percent beyond inflation since 2004, and the share of revenue from non-competitive rates has nearly doubled. At the same time, service reliability has declined. In 2022, nearly one-third of rail shipments arrived late. These disruptions ripple across the economy, delaying production, raising prices and weakening U.S. global competitiveness.
This is the largest rail merger the federal government has ever reviewed. And it comes at a time when U.S. supply chains are already stretched thin. The consequences of further consolidation are not theoretical — they’ve been revealed after every rail merger. Service declines, prices spike, shippers lose options and American consumers pay the price.
The proposed merger between Union Pacific and Norfolk Southern should be setting off alarm bells at the White House and in Congress. Without a clear mechanism to strengthen rail competition, further mergers are a bad deal for business, consumers and the country as a whole.
The updated merger rules from the Surface Transportation Board, or STB, rightly demand that a rail merger must enhance competition — not just preserve it. Enhanced competition means promoting more rail-to-rail competition, not just competition with other modes of transportation. This distinction is important because many members have built their operations around rail service and cannot simply switch to using trucks or barges. The STB must make sure that any merger deal increases competition between railroads. And the board must not stop there. It must move forward with meaningful reforms that strengthen the entire rail network.
American success relies on President Trump working with railroads, manufacturers, agriculture and industry to craft a better deal for America. The stakes are too high to get it wrong.
