Texas doesn’t just move America’s energy and goods — we move the world’s. The Gulf Coast ports handle everything from energy exports to freight, with our refineries processing crude oil and natural gas that fuel the nation. From the Texas border to the Port of Houston, our supply chains are the backbone of American energy and global commerce.
But that competitive advantage rests on one critical foundation: a freight rail system that works for Texas, not against it.
That’s why the proposed merger between Union Pacific and Norfolk Southern should concern every Texan who understands what’s at stake for our state’s energy and port economy.
For those in the energy and port business, rail is the connection between inland refineries and energy producers, and the Gulf ports that ship those products around the world. It’s how we move crude oil and natural gas to processing facilities. It’s how we keep supply chains lean, predictable, and cost-effective.
Texas is competing on the global stage. Our refineries compete with facilities worldwide and our ports compete with other U.S. gateways. And when transportation costs spike or service reliability drops, it’s not just a Texas problem — it’s an American problem. Higher energy costs will ripple through the entire U.S. economy.
A competitive rail system is what keeps us ahead. Multiple carriers mean shippers have options. Options mean fair rates. Fair rates mean American producers can compete and win globally.
The proposed Union Pacific–Norfolk Southern merger would fundamentally change that. History proves when railroads consolidate at this scale, service slows down. Predictability disappears. Rates climb. And the shippers that fuel our economy — refineries, energy companies, port operators — lose their leverage and their choices.
For a refinery or energy producer, this isn’t a minor problem. When only one or two carriers control your shipping options, you can’t negotiate. You can’t shop for better rates or more reliable service. A consolidated carrier will route freight to maximize its own profits, not yours. It will charge what the market will bear because you have nowhere else to go.
Texas’s competitive advantage as a global port hub depends entirely on efficient rail connections. When consolidation creates delays or reduces capacity, the entire system falters. Congestion at rail yards creates congestion at port terminals and delayed freight results in delayed exports. Less reliable service means port operators can’t guarantee transit times to international customers.
When ports lose their competitive edge — when they can’t move cargo as efficiently as other U.S. gateways or foreign ports — shippers will route around them. That means lost business, lost jobs, and lost economic activity in the communities that depend on port operations.
For Texas’s energy exports, the stakes are just as high. We’re competing in global energy markets where reliability and predictability are non-negotiables. International buyers won’t use U.S. ports if they can’t depend on consistent, timely shipments. A rail system compromised by consolidation puts our share of global energy trade at risk.
When transportation costs spike for Texas energy producers, those costs get passed downstream. Refineries pay more to move crude oil, and consumers pay more at the pump. This isn’t just about Texas business — it’s about the affordability and competitiveness of the entire American economy.
Nine attorneys general have already sounded the alarm. Their November letter to the Surface Transportation Board (STB) correctly identified what’s at stake: congestion, higher prices, lower reliability — all of it at the expense of America’s manufacturers and consumers.
The STB should hold this merger to the highest standards of scrutiny. Any deal of this magnitude must demonstrate that it will expand capacity, enhance competition, and benefit shippers and the American economy.
The Surface Transportation Board must decide: will it protect competition or will it allow a consolidation that will strain our energy systems, cripple our ports, and ultimately cost American families more at the pump?
This isn’t a Texas problem. It’s an American one. And the answer matters.