South Carolina governor backs Union Pacific-Norfolk Southern merger

South Carolina Republican Gov. Henry McMaster supports the proposed merger between Union Pacific and Norfolk Southern. McMaster backed the merger in a Sept. 9 letter to Surface Transportation Board Chairman Patrick Fuchs. "I write in support of the proposed combination of Union Pacific and Norfolk Southern and to share my perspective on what this transaction could mean for the State of South Carolina," McMaster wrote. McMaster said better transportation networks have helped South Carolina draw new businesses and investment. "As our state continues to grow, dependable transportation options are essential to moving raw materials and finished products, reducing congestion, improving safety, and supporting environmental stewardship," McMaster wrote. "Expanding the role of rail can help advance each of these goals." He also praised Brosnan Forest. It's an over 14,000-acre property in South Carolina owned and managed by Norfolk Southern. McMaster called it a model for protecting natural resources and wildlife. "I am encouraged by the commitment to continue maintaining and utilizing this unique asset," McMaster wrote. The two rail companies announced the proposed deal in July 2025. The deal values Norfolk Southern at $85 billion. The combined company would operate over 50,000 miles of track in 43 states and connect about 100 ports. The merger would form a massive railroad running from the East Coast to the West Coast. Currently, the two companies don't overlap much. Union Pacific serves much of the western United States, while Norfolk Southern mainly serves the eastern part of the country. Many long-distance rail shipments now require one railroad to hand cars to another railroad during the trip. Supporters say putting the full trip under one company could cut delays and improve service reliability. Many companies that rely on freight rail support the merger. One example is American Cast Iron Pipe Company. It uses rail to move iron pipe for water and sewer projects and steel pipe for the oil and gas industry. "The combined network will offer more direct routes and greater flexibility, minimizing the risk of service disruptions," R. Scott Norton, the company's director of traffic and transportation, wrote in a letter of support. Meanwhile, Commercial Metals Company, a steel producer, said the merger would sometimes cut shipping time by several days by reducing handoffs between railroads. Additionally, Javelin Global Commodities US Holdings Inc. said it moves about 60 million tons of bulk goods. It said a merger would let it provide faster service and serve more customers. Also, Peabody, a large coal mining company, supports the proposal. It said rail plays an important role in moving coal across the country and beyond. Plus, Ricky Sox Fence Company, a small business in Lexington, South Carolina, voiced support for the merger. Owner Rick Sox said his company depends on freight transportation for gates, fencing parts and other heavy building materials. "Delays within the supply chain can slow construction schedules, increase project costs and make it more difficult for our company to complete work within the timelines our customers expect," Sox wrote. And Nissan North America strongly supports the merger. The automaker said it relies heavily on rail to move freight quickly. The Surface Transportation Board must approve the merger before it can take effect. The board accepted a revised application for review in May. It hasn't made a final decision yet. Union Pacific and Norfolk Southern hope to finish the merger in mid-2027.