Logistics

Could A Railroad Merger Be Building Steam?

Mon, 21 Jul 2025 21:04:00 GMT

Late last week, the Wall Street Journal cited exclusive yet unnamed reports Union Pacific was pursuing an acquisition of Norfolk Southern.

This would mean two of the six largest class 1 railroads would be combined to form the first-ever rail service network stretching from coast to coast.

“The question was always, when are we going to get to the time where there’s a lot of energy to pursue a merger from with one of the Western railroads, with one of the Eastern railroads to provide that coast to coast service,” says Mike Steenhoek, executive director for the Soy Transportation Coalition. “And there’s always been kind of a reticence to that, just because there’s has been a lot of mergers and acquisitions within the railroad industry, consolidation, et cetera.”

The current geographic service areas for freight railroads in the U.S. can be broadly described at Union Pacific and BNSF Railway in the western half and Norfolk Southern and CSX in the southern half.

The Surface Transportation Board with its five-member panel would have to approve any acquisition.

Steenhoek also highlights the Department of Justice and Congress/other elected officials would also be involved in any such business transaction and its approval.

“It does show within Union Pacific they think this is a more favorable climate. They’re doing this in year one of a four year administration,” he says. “And so I think there’s some optimism they might get some traction on this. But either way, even if the climate’s favorable, it’s going to take multiple years for this to go through.”

No official comments have been made by either Union Pacific or Norfolk Southern, and it’s worth noting Union Pacific Corporation will release its second quarter 2025 financial and operating results on Thursday, July 24. Northfolk Southern’s next investor report is next Tuesday, July 29.

What could this mean for agriculture?

If this speculation materializes into confirmed news, Steenhoek says shippers will be focused on how any such merger would effect service.

“You’re going to hear a lot of opposition among agricultural shippers because there has been a track record–this is undeniable–that in especially in certain areas, when you see more consolidation within the rail industry, all of a sudden, a shipper, a grain handler, maybe had multiple railroads competing for their business. Now, all of a sudden, there’ll be one,” he says.

Steenhoek says with railroad mergers over time, the agricultural industry has faced upward pressure on rate as well as diminished service.

“Tor someone who advocates for efficient movement of agricultural products, we want transportation providers, including railroads, aggressively competing for our business. That’s good for us,” he says. “And so that’s one of the things that we are going to hear a lot of concern being expressed among grain shippers and handlers about, you’re going to decrease competition and we’ve been down this road before. It’s going to probably result in increased rates, decrease in service.”

The most recent approved railroad merger was in 2023 when Canadian Pacific Railway and Kansas City Southern merged. The transaction formed the first cross border network connecting Canada, U.S. and Mexico.

Citing 2024 annual reports of Class 1 Railroads (which are defined to have operation revenues of $490 million or more by the Federal Railroad Administration), here’s the ranking:

Union Pacific: $24.3 billion
BNSF Railway: $23.4 billion
CSX Transportation: $14.54 billion
Canadian National Railway: $12.4 billion
Norfolk Southern Railway: $12.1 billion
Canadian Pacific Kansas City (CPKC) Railway: $10.4 billion

Second U.S. Port Strike Averted as Union, Employers Reach Deal

Thu, 09 Jan 2025 14:55:03 GMT

The union representing 45,000 dock workers on the U.S. East and Gulf Coasts and their employers on Wednesday said they reached a tentative deal on a new six-year contract, averting a strike that could have snarled supply chains and taken a toll on the U.S. economy.

The United States Maritime Alliance employer group and the International Longshoremen’s Association, in a joint statement, called the agreement a “win-win.” The deal includes a resolution in automation, which had been the thorniest issue on the table.

“This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports — making them safer and more efficient, and creating the capacity they need to keep our supply chains strong,” the groups said.

Terms of the deal were not disclosed.

The talks had been extended until Jan. 15 to hammer a deal on automation. Shipping industry executives had been concerned that the parties would not be able to overcome their impasse, leading to a second ILA strike just days before President-elect Donald Trump’s Jan. 20 inauguration.

A three-day ILA strike in October triggered a surge in shipping prices and cargo backlogs at the 36 affected ports. Longshoremen returned to work after employers agreed to a 62% wage increase over the next six years.

ILA and USMX have agreed to continue operating under the current contract until the union can meet with its full Wage Scale Committee and schedule a ratification vote, and USMX members can ratify the terms of the final contract.

(Reporting by Gnaneshwar Rajan in Bengaluru; Editing by Alan Barona and Leslie Adler)

Shay Foulk: Shedding New “Light” on ROI for Your Farm

Fri, 23 Sep 2022 19:58:55 GMT

If you have ordered a new tractor in the past few months and are currently waiting 12 to 18 months for delivery, you are not alone. In a time of such drastic supply chain issues and snafus, you probably made a good purchase decision, as several manufacturers have had multiple price increases over the past 18 months in response to inflation.

While you’re waiting on delivery or thinking about your current equipment fleet and business decision-making processes, consider how you plan to use the tools available to you, and direct this to return on your investment.

FLIP THE SWITCH

On some new tractors, the light package for LED lights is upward of $30,000. That is $30,000 just to turn on the lights.

It begs the question: Are you turning on the lights for your machines? My business partner and mentor, Chris Barron, pointed out many operations will only run for a few hours at night or early morning.

Fall harvest conditions can be a driver for this due to moisture as dew or frost, but oftentimes planting operations don’t necessarily face the same restrictions.

Ideal planting windows seem to be shorter and shorter each year. Many operations we work with run shifts and planting crews 24 hours a day until the crop is in the ground.

For some, the planter tractors are never actually shut off for days or weeks at a time. They are also highly efficient when refueling and refilling. So they are surely harvesting the most value out of their expensive light package.

There are also ancillary benefits and ROI in your operation. Using the lights as an example, what value is there in identifying a field obstruction before you hit it with a planter or a combine?

Or, how much value do you place on reduced operator fatigue, even if you’re only running for a few hours in the dark? The same points can be made for guidance system and devices.

TIME = INVESTMENT

A North Dakota operation we work with is implementing a transition, and they were worried about time management in coaching the next generation of farm business managers. They thought it was difficult to take time away from the farm workday for coaching when they needed to be in an employee management role to keep shop work and site management rolling.

I asked them how much their labor costs are per hour — around $100. When they told me, I then asked what they would pay per hour to ensure the business was successful in the next five years and for the next generation to carry on the legacy and provide for the family for decades to come?

They hadn’t thought of the process in that light before. It is probably a lot more than $100 per hour.
This was their moment of “turning on the lights.” Their thought was, “Well, nothing will get done if we’re not around!” Most of the time, this is not true.

An hour or two away during the workday can be occupied with small tasks for employees to manage, even if it doesn’t appear to be the most pressing operational need.

This coaching and mentoring time is crucial and provides maximum ROI for long-term business success and transition planning.

REFLECT AND IDENTIFY

What area of your business do you need to turn on the lights? For some, it might be financial management. Many operations need a better understanding of marketing and the tools and processes available to them. As I’ve mentioned before, many of you are looking to turn on the lights in a new or improved office space to focus on day-to-day tasks.

Whatever it is, take some time now to think about where you can improve your ROI in your farm business.
I finished mowing my lawn at 9:42 the other night — well after dark. I sent Chris a text of my old dim headlights illuminating the last pass of grass, and asked him what he thought the ROI was for upgrading to LED lights. Before he could reply, I had my answer.

That night I was able to eat supper with my family, spend time with my 7-month-old and help my wife with house chores so she could enjoy the evening.

I could have mowed in the daylight, but that precious time with my family was worth every minute of strained eyes. I see a lot more late-night lawn care in my future, and the new LED light package is on order. I can’t put a price tag on that ROI.