If Union Pacific were considering a tie-up with either CSX or Norfolk Southern, there are potential benefits to consider for both options.
Potential benefits with Norfolk Southern
Improved East-West Intermodal Network: Acquiring Norfolk Southern could significantly enhance Union Pacific's intermodal network, especially the line from Kansas City eastward. This offers a potentially shorter route from Los Angeles (LA) - El Paso - Kansas City to Chicago and provides an excellent Chicago bypass route through Fort Wayne to the east.
Potential benefits with CSX
Similar Freight Mix: From a freight mix standpoint, Union Pacific more closely resembles CSX. Since 2018, non-intermodal cargo has accounted for 53.8% of CSX's volume, which is almost identical to Union Pacific's 55%. In contrast, non-intermodal accounts for only 43.4% of Norfolk Southern's volume, with the majority being containerized freight.
Ultimately, the choice would likely depend on Union Pacific's strategic priorities and how they weigh the advantages of an expanded East-West network against the benefits of a more similar freight mix and potentially easier operational integration.
UP/CSX is the final outcome. Save this post.