By George Landrith
Rail transportation underpins the strength of America’s economy. Every dollar invested in rail transportation drives two and a half times its worth in economic activity, and for every one railroad job, nearly four additional jobs are created in connected industries.
Despite freight rail’s importance, much of the system is showing its age. U.S. freight rail infrastructure earned a B- grade on the American Society of Civil Engineers (ASCE) 2025 Report Card, a slight decline from the B grade in 2021. Our network today lacks true coast-to-coast integration and instead depends on rail cars being transferred between separate carriers. The fragmented network creates delays, raises transportation costs, and limits industry-led innovation under a heavy federal regulatory framework.
Failing to modernize this vital infrastructure risks leaving the United States at a disadvantage as global competitors continue to invest in more advanced and efficient systems. At a time when other nations are racing ahead, America cannot afford to fall behind. Currently, Canadian-owned rail operator Canadian Pacific-Kansas City Southern is the only single-line network spanning Canada to Mexico.
The proposed Union Pacific (UP) and Norfolk Southern (NS) merger offers a strategic solution by creating the nation’s first truly transcontinental rail network – connecting all four corners of the country through 50,000 miles across 43 states.
Railroads are designed to unify markets, connect workers to jobs, and link communities to opportunity. That role is harder to fulfill when interconnected systems operate independently rather than as a cohesive network. In fact, the merger will convert over 10,000 existing routes across the country from interline service, which essentially means that freight must be passed from one rail company’s network to another’s at an interchange, into faster, more efficient single-line service which gives shippers one partner for their entire rail journey.
UP and NS are already each other’s largest interchange partners, exchanging more than one million shipmentsannually. Combining these networks would build on that coordination, reducing handoffs that slow shipments and creating more direct routes to markets at home and abroad. And those handoffs at interchanges can be costly with some estimates showing that shippers on interline routes pay an average of 35 percent more than those with access to single-line service. The merger will eliminate that premium for thousands of routes and ensure that freight moves much faster from one part of the country to another. It will also remove an estimated two million trucks from the nation’s highways as rail becomes more competitive with trucks, easing congestion and reducing the wear on the highway system paid for by taxpayers.
Beyond market access, the merger presents an opportunity to modernize critical infrastructure. Aging rail lines and persistent delays are more than inconveniences – they undermine efficiency and reliability across the broader economy. A more resilient rail system can help absorb disruptions, stabilize supply chains, and support more predictable pricing.
Upgrading infrastructure is often associated with a significant public cost, but this proposal relies on private investment rather than taxpayer funding. It offers a practical way to address longstanding logistical challenges while reinforcing the role of free enterprise in driving progress. This is what market-driven modernization looks like in action.
Policymakers should focus on removing barriers to market-driven solutions while supporting innovation within the industry. Excessive federal intervention can slow the very progress needed to modernize the nation’s logistics network. America’s economic strength has long been driven by entrepreneurs and private investment – not centralized decision-making far removed from day-to-day operations.
The government role should be to foster an environment where innovation can thrive and infrastructure can evolve to meet current demands – especially through private funding. President Abraham Lincoln understood that when he signed the Pacific Railway Act in 1862, setting the country on a path toward a unified rail network. The UP-NS merger completes that vision – connecting east and west under a single operator for the first time in American history.
The country’s commitment to open markets has powered decades of economic growth and opportunity. Now is another opportunity for America to build on that legacy by supporting a practical, forward-looking transportation solution.
America has always advanced by investing in its strengths and embracing innovation. Approving this merger is an opportunity to do both – modernizing rail, strengthening supply chains, and positioning the economy for what comes next. It’s a chance to build a system worthy of the nation it serves – and to keep America moving forward.
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George Landrith is the President of Frontiers of Freedom, and a nationally recognized conservative commentator. Landrith is an advocate for America First policies and author of “Let Freedom Ring Again: Can Self-Evident Truths Save America from Further Decline?”