Illinois business leaders are pressing the U.S. Surface Transportation Board to support a proposed Union Pacific–Norfolk Southern merger, arguing it would create a true transcontinental freight line, cut delays and costs, shift thousands of truckloads to rail,
For years, Illinois has lived at the center of the country’s freight rhythm—Chicago’s rail corridors feeding the movement of goods as American industry evolved from factories to today’s logistics-driven economy.
Now. a proposed merger between Union Pacific and Norfolk Southern is being pitched as a chance to make that freight hub even more powerful. The plan would. supporters say. link the East and West through a single. continuous transcontinental railroad network—something they argue would translate into faster shipping and less friction for Illinois businesses.
Jaime di Paulo, the CEO of the Illinois Hispanic Chamber of Commerce, submitted a letter to the U.S. Surface Transportation Board supporting the application. In the letter. he frames the merger less as a corporate reshuffling and more as a transportation upgrade with consequences for growth and opportunity.
If approved. di Paulo says the new transcontinental network would convert nearly 10. 000 existing rail lanes that currently involve time-consuming handoffs between carriers into faster. single-line service. The practical promise. according to his argument. is fewer delays. lower costs. and more reliable shipping for Illinois businesses—from manufacturers and farmers to retailers and distributors.
The benefits, he adds, aren’t limited to rail. The merger is also expected to shift an estimated 2 million truckloads from highways to rail. That. di Paulo argues. would ease congestion on already crowded roads. reduce wear on taxpayer-funded infrastructure. and improve safety and air quality across the region.
In addition, he argues the combined network would expand efficient freight service in underserved areas. A unified digital platform and end-to-end service. he says. would give customers one accountable partner for their entire shipment—an approach he describes as more modern. transparent. and efficient.
The letter emphasizes who stands to gain the most from that kind of connectivity. pointing to Illinois’ diverse business community. including Hispanic-owned enterprises growing in logistics. manufacturing. construction. and retail. The case made for them is straightforward: better access to freight routes means new markets. shorter delivery times. and lower transportation costs—helping small and mid-sized businesses scale. hire. and compete.
Di Paulo also anchors the argument in the scale of the freight rail industry. writing that freight rail moves approximately 1.5 billion tons of goods each year. from agricultural products and raw materials to consumer and industrial goods. A stronger, more efficient rail system, his letter says, would help keep U.S. manufacturing competitive and support communities beyond Illinois.
Competition, too, features in the pitch. The proposal. di Paulo argues. would help the United States better compete with Canadian rail networks that already operate coast to coast. By creating a unified American transcontinental system, he says, the U.S. could recapture freight volumes and strengthen domestic supply chains.
Still, the letter acknowledges the stakes that come with any major merger: it should be reviewed carefully to ensure it serves the public interest. But di Paulo argues the proposal also comes with commitments aimed at the workforce.
Union Pacific has pledged that every union employee working for Union Pacific or Norfolk Southern at the time of the merger will have a job for life. Beyond that assurance. he says the companies expect growth from the expanded network to create 1. 200 net new union jobs within three years of the merger. In di Paulo’s view. those roles would strengthen railroading’s place as one of the best-paying industrial professions while supporting long-term economic growth.
For Chicago and the surrounding region, he says, the impact could be especially significant. The metropolitan area “already handles more freight rail traffic than any other in North America. ” and strengthening that hub status. his letter argues. would bring more logistics activity. more private investment. and more good-paying jobs throughout Illinois.
Trade is another focus. Di Paulo highlights U.S.–Mexico trade by noting Mexico is Illinois’ second-largest export market and that nearshoring is accelerating cross-border commerce in manufacturing. agriculture. and construction materials. He argues a seamless transcontinental rail network would strengthen north–south trade corridors. reduce bottlenecks. and give Illinois businesses faster and more reliable access to Mexican markets—supporting North American supply chains.
At the center of the argument is a simple theme: Illinois has built its economic identity on transportation, and supporters believe this merger could reinforce that role for the future—while helping businesses stay competitive as global commerce shifts.
Jaime di Paulo signed the letter as CEO of the Illinois Hispanic Chamber of Commerce.
Illinois Chicago freight rail Union Pacific Norfolk Southern Surface Transportation Board transcontinental railroad trucking shift union jobs U.S.-Mexico trade nearshoring logistics