Montana Attorney General Austin Knudsen has urged the Department of Justice to scrutinize an $85 billion merger between Union Pacific and Norfolk Southern railways, stating it conflicts with President Trump’s economic policy. This merger would grant control over 50,000 miles of track to the combined company, surpassing BNSF Railway’s 32,000 miles of track. Knudsen argued that this consolidation in the freight-rail industry would harm service quality and increase transportation costs, undermining an America-First economy.
The U.S. boasts over 140,000 miles of railroad, mostly owned by a few major companies. A merger between Union Pacific and Norfolk Southern would significantly increase their influence. BNSF holds most of Montana’s railroads, with Union Pacific owning a small line through Monida Pass to Butte, where the Port of Montana is located. This location is historically significant, as it was where the first rail entered Montana in 1880.
Knudsen’s letter is supported by attorneys general from Iowa, Kansas, Mississippi, North Dakota, South Dakota, and Tennessee. Industrial lobbyists like the American Chemistry Council and the National Grain and Feed Association oppose the merger. According to Knudsen, the merger would negatively impact competitive rail and interline services, contradicting federal policies to boost American industry and employment.
‘Good rail competition’
Railroad competitiveness has long been a focus in Montana. The state established a “Rail Service Competition Council” to enhance rail service competitiveness, but it was repealed in 2019. The council’s 2007 findings revealed that Montana shippers faced high costs and poor service, prompting the state Attorney General’s office to mediate negotiations between BNSF and agricultural groups. Montana’s rail shipping costs remain high due to limited infrastructure and geographic challenges.
The 2014 report highlighted limited intermodal freight facilities in Montana, with Billings being the only operational one at the time. The Port of Montana has since upgraded its facility in Butte, now serving both BNSF and Union Pacific. In 2024, a merger between BNSF Railway and Montana Rail Link expanded BNSF’s control over Montana’s freight network by 900 miles.
Energy is a prominent commodity on Montana’s railways, with BNSF being the sole carrier for the western shale regions. BNSF and energy interests often collaborate, as seen in their opposition to a 2025 bill proposing railcar tax allocations to passenger rail projects. The 2014 report emphasized the challenges of limited trade lanes and access points in Montana’s rail network.
2026-02-12 AGs’ Ltr to DOJ re Union Pacific-Norfolk Southern Merger
06-2019-RSCC-Final-Report
