Union Pacific (UNP) Could Be 10% Below Fair Value As Earnings Beat Lifts Outlook

Portland says Union Pacific used the AskRail app to confirm 13 rail cars with residual hazardous materials passed a fire-damaged Centennial Mills warehouse after the railroad had promised to restrict such traffic. Union Pacific told OPB it suspended running loaded hazardous cars, but did not address the cars that passed. Demolition began Aug. 14, with more work planned Aug. 17.

Montana Attorney General Austin Knudsen urged the Surface Transportation Board to block or scrutinize Union Pacific’s proposed acquisition of Norfolk Southern. Union Pacific said the deal would value Norfolk Southern at $320 per share, implying about $85 billion enterprise value and a combined enterprise over $250 billion, according to its press release.

The National Grain and Feed Association and other shipper groups filed comments with the U.S. Surface Transportation Board urging rejection of Union Pacific and Norfolk Southern’s amended rail merger application. NGFA argues the filing does not show rail-to-rail competition gains and that the Committed Gateway Pricing model is limited. BNSF and several state AGs also oppose.

Six U.S. freight railroads and two industry groups lost an appeal against a Federal Railroad Administration rule requiring many trains to have at least two-person crews, according to a U.S. Court of Appeals filing. The railroads, including Union Pacific and BNSF (Berkshire Hathaway-owned), argued the FRA lacked authority and ignored one-person crew cost impacts. The court denied review; one judge dissented.

BNSF Railway says revised remedies for the proposed Union Pacific–Norfolk Southern merger do not adequately address competition concerns. BNSF claims expanded Committed Gateway Pricing would cover under 1% of U.S. rail traffic and that 60% of eligible shippers would face higher rates. It also argues some protections could expire within three years. The Surface Transportation Board has not ruled.

Five US shipper groups filed a joint motion with the Surface Transportation Board urging rejection of the proposed Union Pacific (UP) and Norfolk Southern (NS) merger. They argue UP-NS have not provided sufficient information on competitive impacts and public-interest effects. STB accepted a revised major merger application May 28, paused the process for environmental review, and ordered supplemental data by July 27.