South Carolina Gov. Henry McMaster has formally backed a proposed merger between Union Pacific and Norfolk Southern, telling federal regulators the combination could strengthen freight service as the state grows. The Center Square reported that McMaster outlined his position in a Sept. 9 letter to Surface Transportation Board (STB) Chairman Patrick Fuchs.
What McMaster told regulators
“I write in support of the proposed combination of Union Pacific and Norfolk Southern and to share my perspective on what this transaction could mean for the State of South Carolina,” McMaster wrote, according to The Center Square. He argued that dependable transportation options help attract business and investment, adding, “Expanding the role of rail can help advance each of these goals.”
McMaster also pointed to Brosnan Forest—an over 14,000-acre property in South Carolina owned and managed by Norfolk Southern—calling it a model for protecting natural resources and wildlife. “I am encouraged by the commitment to continue maintaining and utilizing this unique asset,” he wrote.
The deal on the table
The Center Square reported that Union Pacific and Norfolk Southern announced the proposed deal in July 2025, valuing Norfolk Southern at $85 billion. The combined railroad would operate over 50,000 miles of track in 43 states and connect about 100 ports, creating a network running from the East Coast to the West Coast. The outlet noted the companies currently have limited overlap—Union Pacific in the West and Norfolk Southern in the East—so many long hauls now require handoffs between carriers. Supporters argue one carrier could reduce delays and improve reliability.
Who’s lining up behind it
The Center Square cited multiple shippers backing the merger. American Cast Iron Pipe Company’s R. Scott Norton wrote that a combined network would offer “more direct routes and greater flexibility, minimizing the risk of service disruptions.” Commercial Metals Company said fewer handoffs could sometimes cut shipping times by several days. Javelin Global Commodities US Holdings Inc. said it moves about 60 million tons of bulk goods and argued the deal would enable faster service and broader reach. Coal producer Peabody also supported the proposal, emphasizing rail’s role in moving coal domestically and abroad.
South Carolina small business Ricky Sox Fence Company voiced support as well. Owner Rick Sox wrote that delays in the freight network can slow construction schedules and raise costs. Additionally, The Center Square reported that Nissan North America “strongly supports” the merger, citing heavy reliance on rail.
What happens next
The STB must approve the merger before it can proceed. According to The Center Square, the board accepted a revised application for review in May and has not issued a final decision. Union Pacific and Norfolk Southern aim to complete the merger by mid-2027, the outlet reported.
