Union Pacific Corp.’s takeover of Norfolk Southern Corp. will create a stronger competitor to long-haul trucking and take about 2 million truckloads off U.S. roads each year, the companies said as they pursue regulatory approval for the combination.

Creating a continuous, coast-to-coast railroad will also reduce the need to transfer cargo between the companies by truck at interchanges. In the greater Chicago area, that would translate to an estimated 350 fewer trucks on the road each day, the companies said in a summary of their roughly 7,000-page merger application filed with the U.S. Surface Transportation Board.

Union Pacific and Norfolk Southern are pitching the $72 billion cash-and-stock transaction that would significantly consolidate the U.S. freight rail industry as a means to spawn a stronger competitor to trucking. 

Current regulations require rail mergers to show that a deal would serve the public interest and enhance competition, a step beyond the requirements in some other industries. The companies argue that shifting cargo to rail from trucks will reduce pollution and the burden on taxpayer-funded roads. 

Long-haul trucking “dominates” the market, the companies said, citing U.S. government data showing the rail industry saw a nearly 10% decline in market share between 2014 and 2023.

“Without structural reform and bold leadership, rail’s position in the U.S. freight market will continue to erode – no matter how well individual railroads perform,” the companies said in the document.