July 29 (UPI) — The Union Pacific and Norfolk Southern corporations announced Tuesday the companies will merge to create America’s first transcontinental freight railroad.
The agreement will see Union Pacific purchase Northern Southern for stock and cash, at an implied $85 billion for Norfolk Southern, which creates a combined organization worth more than $250 billion.
Not to be confused with transcontinental rail service, which has been available since 1869 when the famous “Golden Spike” linked Union Pacific with the Central Pacific railroads in Promontory Summit, Utah, when it comes to freight such service requires a transfer of goods from one railroad company to another.
However, the deal made between Union Pacific and Norfolk Southern will create a seamless connection that rolls over 43 states and more than 50,000 route miles from coast to coast. The service will link around 100 ports and is intended to upgrade the American supply chain, while also increasing employment opportunities and securing union jobs…