April 30 (UPI) — The Union Pacific and Norfolk Southern corporations announced Thursday a new merger proposal after a federal regulator rejected their initial plan in January.
The two companies applied for a merger in July, seeking to create the United States’ first transcontinental freight railroad.
The Surface Transportation Board rejected the proposal saying the application was incomplete.
A statement from the two companies said they resubmitted the application with “additional analysis” indicating cost savings for customers and improvement to the U.S. supply chain. It said the deal would take 2 million truckloads off the nation’s roadways and save $3.5 billion each year.
“After completing the additional work requested by the STB, the facts remain clear: This merger enhances competition and delivers real public benefits that make America’s supply chain stronger, Union Pacific CEO Jim Vena said in a statement.
The new submission includes traffic data from each of the six North American Class I railroads instead of sample data provided by the STB, the companies said.
The STB will have 30 days to review the new application.
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