Freight Class I Report: Goldman Sachs advising BNSF on potential merger (updated)

Report: Goldman Sachs advising BNSF on potential merger (updated)

By Bill Stephens | July 21, 2025

| Last updated on August 6, 2025


The news comes on the heels of last week’s reports on merger talks involving Union Pacific and Norfolk Southern

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BNSF Railway hotshot Z-WSPSBD3-04 rolls west through the Rose Hill, Kan., crossovers on Dec. 5, 2024, at what used to the be the west end of Rose Hill siding. Keel Middleton

News reports say that BNSF Railway has hired Goldman Sachs to advise it about a potential rail merger.

Semafor, an online publication, reported on Monday evening that BNSF has engaged Goldman Sachs in the wake of Union Pacific working with Morgan Stanley regarding potential mergers. Both reports cited people familiar with the matter. The railroads and investment banks declined to comment.

The report said it was not clear whether BNSF was interested in CSX or Norfolk Southern. NS is reportedly the target of Union Pacific, and the two railroads have been in merger talks since the first quarter, the Associated Press reported last week.

Meanwhile, Reuters reports that CSX is now seeking an investment banking firm to advise it about potential mergers.

There has not been a big merger involving the major Class I systems since the Surface Transportation Board adopted tighter merger review regulations in 2001.

Note: Updated at 8 a.m. Central with information about CSX seeking investment bank advice.

15 thoughts on “Report: Goldman Sachs advising BNSF on potential merger (updated)

  1. Why Shouldn’t BNSF.merge with CSX It’s in the Cards That Union Pacific can’t be the Only Player

  2. The big question of these feelers is crossing the Mississippi River. Any combination is going to have effects on cross river traffic, NOL, Baston Rouge, Vicksburg, Memphis, Cario, STL and CHI. CHI could have a drastic reduction in traffic that would speed up all the crossings.

    Then there are the shippers that are on one side or the other that want their shipment to cross the Mississippi that are being ignored by the class 1s. The STB if these feelers come up to actual proposals are going to need to protect those neglected shippers. In the long run probably see new or greatly improved crossings. Susp[ect that NOL might see a major decrease. That would occur if UP would want to restore the north of Lake Pontchartrain train route to NS NONE RR route..

  3. NS is a better fit for UP because of the ex-Wabash line east of Kansas City. UP currently uses BNSF trackage rights to reach its Global 4 intermodal yard near Joliet, IL. With the Wabash, UP could run to Springfield, IL and switch to its ex-Alton line to reach Global 4. The Wabash would also offer a Chicago bypass for other Eastern freight.

  4. The concessions required to make two, balanced transcontinental systems should be enough to keep this from happening. How about Uncle Pete sell the Kansas Pacific to CPKC?

  5. So you want to go back to the days of the ICC/etc. where you could serve this city but not that city and you have frozen rates which means no body made money, plus labor strikes du jour.
    You think the government can do better moving a box of widgets than the private sector?

  6. Let’s recall that the rail business is both complex and surprising… Perhaps CSX might be a better fit for Union Pacific than NS… Note that any merger would require approval from the STB, which could take up to two years.

    Dr. Güntürk Üstün

  7. At the risk of sounding like a broken record, bigger is not better. These big railroads cat manage what they have now.

  8. There’s big money to be made, not earned mind you, but made doing these mergers and acquisitions. BNSF has the deep pockets of its parent company to outbid UP for its choice of partner. The trick to the whole affair will be buttering up the POTUS for easy regulatory approval.

  9. Monoplists gotta do what monoplists do. An industry that hasn’t grown in 20 years with 40% margins doesn’t bode well for the customers, the public or environment. Trumpism will rubber stamp these monsterous mergers.

    Government deregulation has utterly failed. Trains has trumpeted dereg as a great success for over 40 years, dutifully parroting industry PR. In reality, workers have taken a beating, customers have no choices, rates are priced ABOVE inflation and the executives and Wall Street rake in billions. IT HAS FAILED.

    At some point the failed Reagan-Thatcher-Clinton neoliberalism will collapse on itself (just look around!) And 2 new monopolies will be easier to nationalize for the public good than a few dozen in Conrail’s day.

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