Autonomous Trucking Is Here: Why Rail Cannot Be the Industry That Waited

To Our Customers,

I have spent my career in this industry, and one thing has never changed: the carrier that keeps improving is the one that earns your freight. Our biggest competitor, the trucking industry, is not standing still. Driverless trucks are steadily advancing, and they are already moving real freight while testing continues. Union Pacific cannot stand still either. Our customers want faster delivery, more efficient freight, connected supply chains and clear visibility for every shipment. That is why our merger with Norfolk Southern is so important, and why this is the right time for rail to become more efficient and more competitive.

Trucks Are Not Waiting
The trucking industry is changing faster than at any point in my career. Aurora self-driving trucks are on Texas highways today with no one behind the wheel, and it expects to have 200 trucks on the road by the end of this year and as many as 30,000 by 2030. Volvo plans to roll out 300 autonomous trucks across Texas and Oklahoma by the end of 2027. Kodiak AI is already operating driverless trucks in the Permian Basin, and it expects to run driverless between Dallas and Houston before this year is out. Their target is clear: long haul lanes, the same lanes where rail has always made the most sense.

These are not science projects. Werner Enterprises and Uber Freight, two of our important IMC customers, see the value intermodal brings to what they offer, and they are also testing this new technology with Aurora. They are looking ahead and are not waiting for change to come to them, and neither should rail.

The Rail Industry Has to Change to Compete
Truck already holds the largest share of U.S. freight transportation at 43% (comparing all modes), and that lead will only grow as driverless trucks scale. If rail wants to compete for any of that freight, if union leaders value their jobs, if customers want rail as a cost competitive option, this merger is critical. Without it, railroads will face a faster, cheaper truck with the same network we run today, one that hands off freight from one railroad to another in the middle of the country. That is the version of rail that loses freight to the highway. Our merger with Norfolk Southern changes how rail operates so we can compete with trucks for that business.

What the Merger Means for You
So, what does that change look like for you? Transit times are 24 to 48 hours faster, 10,000 lanes that move from two railroads to single line service, and one railroad accountable from origin to destination. You get fewer service disruptions, less dwell time and more reliable trip plans. That opens the door to new lanes and new markets for your business and is why we are not willing to wait. 

The companies that last are the ones that proactively move the industry ahead before they have to, and that is exactly what we intend to do. While we build for the future, we are earning your business today, one shipment at a time. Thank you for choosing Union Pacific.

Sincerely,

Kenny Rocker
Executive Vice President, Marketing & Sales