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Union Pacific-Norfolk Southern merger would be a win for Illinois

Illinois has long stood at the center of America’s transportation network. From the rail lines that fueled our industrial growth to the modern logistic systems that power today’s economy, our state — and especially Chicago — serve as the nation’s freight hub.

We now have a unique and historic opportunity to strengthen that role for the future.

The proposed merger between Union Pacific and Norfolk Southern would create the nation’s first true transcontinental railroad, linking the East and West through a single, seamless freight network. For Illinois, this is not another corporate transaction. It is a major transportation development with significant economic implications for our state.

As CEO of the Illinois Hispanic Chamber of Commerce, I was proud to submit a letter to the U.S. Surface Transportation Board in support of this application. Our business community understands that modern, efficient infrastructure is essential to growth, competitiveness and opportunity.

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If approved, the new transcontinental network would convert nearly 10,000 existing rail lanes that currently require time-consuming handoffs between carriers into faster, single-line service. That would mean fewer delays, lower costs and more reliable shipping for Illinois businesses — from manufacturers and farmers to retailers and distributors.

The merger is also expected to shift an estimated 2 million truckloads from highways to rail. This would ease congestion on already crowded roads, reduce wear on taxpayer-funded infrastructure and improve safety and air quality across our region.

Equally important, the combined network would expand access to efficient freight service in underserved areas. A unified digital platform and end-to-end service would give customers one accountable partner for their entire shipment — bringing a more modern, transparent and efficient approach to freight transportation.

These improvements matter deeply to Illinois’ diverse business community, particularly Hispanic-owned enterprises that are growing rapidly in logistics, manufacturing, construction and retail. Better connectivity opens new markets, shortens delivery times and lowers transportation costs — helping small and mid-sized businesses scale, hire and compete.

Freight rail is a backbone of the American economy, moving approximately 1.5 billion tons of goods each year — from agricultural products and raw materials to consumer and industrial goods. A stronger, more efficient rail system helps keep U.S. manufacturing competitive and supports communities across the country.

This proposal would also allow the United States to better compete with Canadian rail networks that already operate coast to coast. A unified American transcontinental system can help recapture freight volumes and strengthen domestic supply chains.

On top of the benefits this merger would provide for customers and communities, it should also protect the hardworking union workforce that keeps America’s freight network moving. Union Pacific has pledged that every union employee working for Union Pacific or Norfolk Southern at the time of the merger will have a job for life. That will ensure critical workforce stability alongside infrastructure modernization.

Just as importantly, the rail companies expect that growth from the expanded network would create 1,200 net new union jobs within three years of the merger.

At a time when America needs more strong, middle-class careers, this investment strengthens railroading’s role as one of the best-paying industrial professions in the country while supporting long-term economic growth.

For Chicago and the surrounding region, the potential impact of the merger is especially significant. Our metropolitan area already handles more freight rail traffic than any other in North America. Strengthening that hub status means more logistics activity, more private investment and more good-paying jobs throughout Illinois.

This opportunity is also critically important for U.S.–Mexico trade. Mexico is Illinois’ second-largest export market, and nearshoring is accelerating cross-border commerce in manufacturing, agriculture and construction materials. A seamless transcontinental rail network would strengthen north–south trade corridors, reduce bottlenecks, and give Illinois businesses faster and more reliable access to Mexican markets — while supporting North American supply chains.

Of course, any major merger deserves careful review to ensure it serves the public interest. But we should also recognize opportunity when it emerges.

Illinois has always been where transportation innovation meets economic growth. By supporting this merger, we can reinforce our role as the nation’s freight hub, strengthen trade with Mexico and our North American partners, and help ensure that Illinois businesses — large and small — remain competitive in a rapidly changing global economy.


Jaime di Paulo is CEO of the Illinois Hispanic Chamber of Commerce.

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