The Best Customer Protection is Competition

We've grown our non-coal business by 5% since Jim Vena became CEO in 2023 because customers have responded to stronger service. In the first nine months of 2026, freight cars moved an average of 5% farther per day, average train speed increased 4% and cars spent 7% less time in terminals than during the same period last year. Those aren't just operating statistics. They are indicators of a railroad that is becoming faster, more reliable and more efficient for customers making critical business decisions every day.

That's why I believe the strongest protection for customers is a competitive marketplace. Competition forces railroads to improve service, control costs and continually earn customers' business. The performance gains we've delivered over the last several years are proof of that dynamic at work.

Customers don't reward railroads for good intentions. They reward railroads that help them lower costs, improve supply chain reliability and compete more effectively in their markets. If we fail to deliver, they push back, seek alternatives and use every available avenue to hold us accountable.

The proposed merger with Norfolk Southern builds directly on the service improvements we've already delivered. Today, shipments moving between our networks require railroad-to-railroad handoffs that add time, complexity and risk. A seamless transcontinental railroad will eliminate that friction point, giving customers faster, more consistent service from origin to destination.

Customers also want assurance that the benefits we've outlined will become reality. That's why we're backing our case with specific commitments.

Existing protections remain firmly in place. The Surface Transportation Board (STB) will continue to review certain rates, service and business practices, and the merger will be subject to years of enhanced regulatory monitoring. Beyond that, we've proposed additional protections designed specifically to address concerns raised during the review process.

For the small number of customers who could lose access to a major railroad option because of the merger, we will provide access to another Class I railroad to preserve competitive choices. We'll also keep key gateways open on commercially reasonable terms, allowing customers to continue using routes involving other railroads.

Beyond preserving existing access, the merger will enhance the competition that drives better service and lower costs for customers. By eliminating inefficient interchanges between Union Pacific and Norfolk Southern, we'll be able to offer new single-line service products and faster, more reliable transportation options that compete more effectively with both other railroads and long-haul trucking.

The merger also creates commercial opportunities that extend beyond the direct service benefits customers will see.

Committed Gateway Pricing (CGP) builds on those benefits. Through CGP, we will provide BNSF and CSX with committed pricing for our portion of qualifying shipments, giving them one-stop pricing and expanded commercial access across the combined network. In the East alone, 45% of Union Pacific and CSX carload traffic will be eligible for CGP.

We've also committed $2 billion to support what will be the most carefully planned railroad merger in history. If service unexpectedly falls below established levels during integration, eligible customers will receive temporary access to an alternative railroad. Customers also will have the ability to pursue arbitration of damages claims arising from merger-related service deterioration during the integration period. And if projected benefits are not being delivered in a timely manner, the STB can provide eligible customers with an expedited process for resolving rate disputes.

Those commitments matter. But ultimately, they're a backstop.

The strongest protection for customers isn't a commitment or a condition. It's competition. It pushes us to improve service, create new products, invest in capacity and earn customers' business every day. A transcontinental Union Pacific will strengthen that competitive dynamic by creating new transportation options, improving service and helping rail compete more effectively with trucks and other alternatives.

At the end of the day, that's what this merger is about: creating a stronger, more competitive railroad that delivers more value to customers. And when competition is working, customers are protected.

Please review Union Pacific’s cautionary note regarding forward-looking statements.