Several major coal producers and energy trade groups are urging federal regulators to approve the proposed merger between Union Pacific and Norfolk Southern, warning that a dependable freight rail system is critical to meeting the nation’s growing energy demands. The merger, if approved by the Surface Transportation Board, would create the first transcontinental railroad in the United States.
The groups argue that with rapid increases in electricity demand—driven by artificial intelligence, data centers, and domestic manufacturing—the reliability of coal deliveries has become even more vital. Coal still accounts for a substantial portion of U.S. electricity generation, and nearly 70% of the coal used by power plants is transported by rail.
America’s Power, a national trade association representing coal-fired electricity producers, told regulators that coal delivery by rail is a “crucial link” in ensuring stable and affordable energy. The group emphasized that many coal-fired power plants rely exclusively on rail service for fuel and warned that power reliability could falter without efficient rail logistics.
Peabody Energy, the nation’s largest coal producer, voiced strong support for the merger, calling the American freight rail system a “critical component” of its supply chain. The company highlighted the need for better service reliability and praised the potential for increased investment and shorter delivery times under the proposed deal.
Alliance Resource Partners, another major producer, said its operations depend on timely and cost-effective rail service. It stressed that the merger could enhance rail performance and benefit not just energy companies but also the national economy and energy security.
Core Natural Resources added that improved coordination and infrastructure investment could boost the overall efficiency and sustainability of coal transport, helping stabilize the energy supply during a time of rapid demand growth.
The Surface Transportation Board has not made a final decision. The merger application will undergo a comprehensive review process, with competition, safety, and long-term infrastructure considerations expected to draw close scrutiny.
