Union Pacific and Norfolk Southern have filed a joint application with the STB for an $85 billion merger to create a modern transcontinental railroad in the U.S. The railroads believe the merger will enhance competition, simplify pricing, and increase efficiency, benefiting customers and reducing daily rail car handlings and miles. The STB has 30 days to decide on the filing.

The proposed merger has sparked reactions from shippers, lawmakers, and labor groups like the Teamsters, who oppose the deal due to concerns about job protection. Union Pacific has promised to protect all union jobs post-merger and create 900 net new union jobs by the third year of the merger. SMART-TD supports the deal after securing lifetime job protection for its members.

BNSF Railway opposes the merger, citing concerns about reduced options for shippers, increased freight rates, and higher consumer prices. The Rail Customer Coalition, representing various industries, believes the merger does not enhance competition and has called on the STB to reject any deal that fails to do so. Despite backlash, the merger has received 2,000 letters of support and 99% shareholder approval.

Read more at Yahoo Finance: Union Pacific, Norfolk Southern File Merger Application as Teamsters Object