“The merger will seamlessly connect more than 50,000 miles of rail lines across 43 states from the east coast of the United States to the west coast, passing through about 100 ports and almost all parts of North America,” the two companies said in a press release.
“This merger will revolutionize the U.S. supply chain, unleash manufacturing capabilities, protect trade union jobs, and create new sources of growth and employment opportunities,” he stressed.
Union Pacific has major freight rail networks in the central and western parts of the U.S., and Norfolk Southern in the eastern part of the Mississippi River. If the merger is finalized, the combined company will likely become the largest railroad company in the U.S., surpassing Burlington Northern Santa Fe under Berkshire Hathaway.
It will also become the first single company to have a rail network from the West Coast to the East Coast of the United States.
However, some believe that despite the announcement of the merger, it will not be easy to solve tasks such as the competition authorities’ review of business combinations and the opposition of labor unions.
SAM KIM
US ASIA JOURNAL
