A proposed 85 billion dollar merger between Union Pacific and Norfolk Southern would create the largest railroad in the United States, spanning more than 50,000 miles of track across 43 states, and although neither company has a dominant footprint in Montana, the deal could carry major consequences for the state’s economy. More than 90 percent of Montana’s roughly 3,700 rail miles are controlled by BNSF, while Union Pacific operates only about 125 miles in the state and Norfolk Southern has no track here.

Even so, Montana’s congressional delegation and Attorney General have urged federal regulators to conduct a rigorous and comprehensive review, citing concerns about competition and shipping costs. If approved, the merged railroad would handle more than 40 percent of all U.S. freight rail traffic, a level of consolidation that could influence rates and service reliability for shippers nationwide, including businesses and agricultural producers in Montana.

For Montana farmers and ranchers, who rely heavily on rail to move grain and other commodities to domestic and global markets, even modest rate increases or service disruptions could have significant economic effects. Time sensitive shipments during harvest are especially vulnerable, and delays could reduce access to export markets and cut into already narrow margins.

Beyond agriculture, rail service plays a critical role in transporting consumer goods, construction materials, fuel and food into and out of Montana, directly affecting household costs and the broader state economy. Previous railroad mergers in the 1990s led to widespread service breakdowns and financial losses, raising concerns that another consolidation of this scale could disrupt transportation networks that Montana communities depend on. With agriculture and freight movement central to Montana’s economic growth, the outcome of this merger review could influence transportation costs, business competitiveness and economic stability across the state.

What does an $85M railroad merger have to do with Montana?