Is the Unthinkable Possible?

Large corporate mergers and acquisitions are nothing new. From mega pharmaceutical

companies to tech giants, consolidation has become a defining feature of modern business. The rail industry is no different, though the scale and impact of its mergers can be uniquely transformative.

Just look at the headlines: Nippon Steel’s acquisition of U.S. Steel made waves across the globe. Meanwhile, GATX quietly acquired the railcar assets of Wells Fargo, signaling continued strategic realignment within the industry. But what about the Class I railroads, the heavyweights of North American freight rail? Surely, another merger at that level would be unthinkable today. Or is it?

When I was born, there were around 56 Class I railroads operating across North America. Today, that number has dwindled to just six.

🔹 Class I Railroads in 2025

• BNSF Railway

• Union Pacific Railroad

• CSX Transportation

• Norfolk Southern Railway

• Canadian National Railway (CN)

• Canadian Pacific Kansas City (CPKC)

A Look Back

For those new to the industry, or anyone trying to better understand how today’s rail landscape came to be, this evolution offers a valuable case study. Tracking the mergers chronologically provides insight into how deregulation, competition, and economic pressure drove consolidation. It’s a powerful example of how policy and market forces shape infrastructure, and a useful lens for thinking about what might come next.

1960s: The Early Consolidations

• 1960: Erie Railroad + DL&W → Erie Lackawanna

• 1967: Atlantic Coast Line + Seaboard Air Line → Seaboard Coast Line

• 1968: NYC + Pennsylvania RR → Penn Central

• 1969: Chicago Great Western + C&NW → C&NW

1970s: Conrail and Crisis Recovery

• 1970: Penn Central collapses, leading to federal intervention

• 1976: Conrail is formed from several bankrupt northeastern lines

1980s: Deregulation Sparks a Merger Boom

• 1980: The Staggers Rail Act deregulates the industry

• 1982–1987: A flurry of mergers including Seaboard System, Western Pacific, CSX formation, and creation of Norfolk Southern

1990s: The Big Players Emerge

• 1995: Burlington Northern + Santa Fe → BNSF

• 1996: Union Pacific absorbs Southern Pacific

• 1999: CSX and NS carve up Conrail

2000s: A Pause in the Action

• Mergers slow as the STB enacts stricter rules

2010s: Consolidation at the Margins

• Activity shifts to shortlines and regional carriers

2020s: A New Era?

• 2023: Canadian Pacific + Kansas City Southern → CPKC

  • The first railroad to span Canada, the U.S., and Mexico

What We Can Learn

Educators, industry newcomers, and even policymakers can draw valuable lessons from this historical arc. The evolution of Class I railroads is more than just a list of deals, it reflects changing priorities in infrastructure investment, regulatory oversight, and the role of rail in the North American economy.

Maybe a new Class I merger still feels far-fetched. Regulatory hurdles are steep, and public scrutiny is intense. But history has a way of turning “impossible” into precedent. So, is another merger truly off the table? Or is it just waiting for the right conditions, and players, to come together?

What do you think? You can share your thoughts by emailing me at dennis@ihlogistics.com.