The City of Portland filed a formal notice of intent on June 12 to challenge a proposed $85 billion merger between Union Pacific and Norfolk Southern. City officials aim to use the federal review process to address long-standing traffic congestion caused by freight trains blocking crossings in the city’s Central Eastside, according to Willamette Week.
The Merger’s Potential Impact on Portland Traffic
The proposed merger, which would create the nation’s first coast-to-coast transcontinental railroad, has drawn sharp scrutiny from local leaders and residents already struggling with significant rail-related delays. Union Pacific currently operates 3-mile-long freight trains that frequently stall at Southeast 8th, 11th, and 12th avenues. If the merger with Norfolk Southern receives federal approval, Union Pacific estimates that train activity in the Central Eastside could increase by 22%, as reported by KATU.
Union Pacific has contested reports regarding the severity of these delays. In a statement provided to KATU, the company stated: “We’re not sure where that wait time estimate comes from and have seen no data to suggest it’s accurate. The Union Pacific-Norfolk Southern merger will reduce trucks and containers on the road, improving traffic flow within Portland and enhancing safety across the region.”
Local Business and Safety Concerns
For business owners in the affected corridors, the trains represent an economic barrier. Jamie Carle, owner of the Portland Tooth Fairy, described the persistent blockages as a significant hurdle for her customers. “If you’re coming from the central east side and you’re coming to my shop, you can get here. If you’re coming from the other side of Powell, it is another barrier of entry to get into this side of town 100%. And most people aren’t set up to give up hours of their time waiting for that train,” Carle said.
Beyond economic frustration, local residents report dangerous behavior near the tracks. Carle noted that the frequency of the blockages has led to risky interactions between pedestrians and the massive freight trains. “I’ve seen people jumping over the train physically, which is very dangerous. We’ve had a lot of bike accidents and people getting hit by the train because they’re trying to avoid it before it stops,” Carle stated.
City Strategy and Federal Oversight
Portland officials are banking on the rarity of railroad mergers to gain leverage. The last major rail merger in the United States occurred in 1996, when Union Pacific merged with Southern Pacific. Because federal law generally grants railroads broad authority to block surface crossings, the city has few tools to force mitigation outside of the federal approval process required by the Surface Transportation Board (STB).
City Councilor Steve Novick, who pushed for the filing, characterized the current situation as “the most annoying damned thing in the entire city.” Novick suggested that the city could leverage the merger review to secure a settlement agreement that includes a timeline for infrastructure improvements. He added: “Since I believe in competition, as an American, I hope the merger doesn’t happen. But if we can leverage that merger to end that annoyance it will be one of the greatest days in Portland history.”
Next Steps for the Central Eastside
While the city awaits further developments in the federal review, the Portland Bureau of Transportation (PBOT) is moving forward with a separate study. The bureau has entered an agreement with the Federal Railroad Administration to examine ways to reduce the impact of rail crossings in the area. According to a PBOT spokesperson, “The next step is submitting a project management plan outlining the study’s scope and timeline.”
Public comment periods are expected to open later this year, providing a window for the city and local organizations—such as the Central Eastside Industrial Council and the Brooklyn Action Corps—to formalize their opposition or demands. Nationally, the merger also faces resistance from industry competitors. Katie Farmer, CEO of BNSF, warned that the combination would likely increase shipping rates and exacerbate inflation, a concern that remains central to the ongoing federal debate over the $85 billion deal.
