Derailed Competition: The $85B Rail Mega-Merger Threatening US Supply Chains

Erik Peinert, an assistant professor at Boston University, discusses the implications of the proposed Union Pacific and Norfolk Southern railroad merger on the Powering America Podcast. Key topics include railroad mergers, antitrust policy, supply chain resilience, and labor relations.

WASHINGTON — October 27, 2026 — Erik Peinert, an assistant professor at Boston University, joined the Powering America Podcast to discuss the potential impacts of the $85 billion merger between Union Pacific and Norfolk Southern. The conversation covered the implications for competition in the railroad market, antitrust policy, labor relations, and supply chain resilience.

Peinert highlighted significant concerns regarding the merger's effect on competition. He stated, "There is going to be a very large and substantial loss in competition in the railroad market." He explained that the merger would consolidate power in the hands of a single entity, which could lead to higher shipping costs and degraded service for consumers.

The discussion also touched on labor relations, with Peinert noting that the merger could diminish workers' bargaining power. "At the end of the day, this is offering the employer side of the equation at the bargaining table substantially more economic power," he said. He emphasized that the merger contradicts existing antitrust guidelines, stating, "This merger was exactly the type of thing those guidelines were meant to prohibit."

Boston University is a private research university located in Boston, Massachusetts. It offers a wide range of undergraduate and graduate programs across various disciplines, emphasizing research and academic excellence.

About the Powering America Podcast

The Powering America Podcast focuses on issues related to energy, infrastructure, policy, and economic growth. The show features expert guests who discuss current events and trends affecting the American economy and infrastructure landscape.