How the Union Pacific-Norfolk Southern merger helps SW MT | Todd Godfrey

The railroad has a long and storied history in Montana. University of Montana Professor Emeritus Harry Fritz has called the arrival of the railroads in Montana Territory “the single most transformational economic development in the entire history of Montana.”

Here in Southwest Montana, we are home to 125 miles of Union Pacific tracks in the state. And it’s an important 125 miles, because from Butte and Dillon, businesses can send commodities south into Salt Lake City, and then beyond to the entire world.

Presently, however, all freight rail exiting Montana that heads for the East Coast — whether on Union Pacific or BNSF, the state’s largest freight rail provider — ends up a major midcontinent hub called an interchange, where another company has to take possession of the cargo and move it along to its final destination.

Union Pacific has proposed merging with another railroad based mainly in the southeastern United States, Norfolk Southern. Together, they would create a single transcontinental railroad that would have the power to transform the way Montana businesses ship and receive goods. This could result in a number of positive benefits for the state, including lower shipping costs, more prompt and efficient service, and safer roadways.

Combining these railroads will seamlessly connect over 50,000 route miles across 43 states to transform the U.S. supply chain, improve the competitiveness of the national rail network, and create new sources of economic growth and workforce opportunity, including right here in Southwest Montana. Current Union Pacific customers would have access to further destinations faster, and other businesses that do not currently ship by rail may be incentivized to utilize the service.

Customers across the United States will benefit from this coast-to-coast rail network. That means faster service, expanded access to new and existing markets, lower costs due to fewer points where cars need to be transferred between railroads, and investment in cutting-edge technology that will enhance safety and customer service.

Furthermore, freight rail is decidedly safer than trucking, and one intermodal train can take 550 trucks off of our highways. While trucking is still an important part of our transportation infrastructure — and will continue to be — this merger can make rail more competitive with long-haul trucking, an important consideration for a state like ours.

By strengthening the economic viability of our local rail partner, Union Pacific, we hope the economic benefits our region will experience include not only improved freight rail services as our area grows, but perhaps even passenger rail service in the future.

Finally, Union Pacific has been a good community partner here in Southwest Montana, investing $23,000 into local organizations in our communities in 2024 alone. Entities like the University of Montana Western Foundation, the Southwestern Montana Family YMCA, Beaverhead Trails Coalition, and Vibrant Lives of Montana have all received grants from Union Pacific in recent years, just in Dillon. We anticipate that level of community giving will grow should this merger be successful.

The Beaverhead Chamber of Commerce is proud of its relationship with Union Pacific, and proud to support the proposed merger. We hope that the Surface Transportation Board, which is charged with reviewing these types of merger activities, will thoroughly review the information the two companies provide, ask the tough questions, and see the value in producing a truly transcontinental railroad.