Safer Roads and a Stronger Rail Hub: Keep Freight Moving Through Tennessee

Bordering eight states and home to all six major Class I freight railroads, Tennessee is a nationally recognized logistics hub. Its central location, existing transportation infrastructure, and pro-business environment help businesses move goods across the country.

Memphis is the largest major rail hub, and one of the largest in the United States, but with interchange delays costing time and money, shippers are left looking for alternatives. That is where Union Pacific and Norfolk Southern can help. The rail companies are seeking approval of a proposed merger that would create a single coast-to-coast railroad, eliminating handoff delays between their networks, further cementing Tennessee’s role and expanding market access for local businesses.

As goods move between Union Pacific and Norfolk Southern, they must be handed off from one rail carrier to the other. These handoffs take time and add to shipping costs. For consumers, that means higher prices and less reliability. Combining the networks would eliminate those transfers, allowing shipments to stay with one carrier from origin to destination. Shipping freight with single-line service costs 25% to 35% less than comparable moves involving multiple railroads.

Better rail connections would help Tennessee businesses grow beyond the markets they already serve. A manufacturer looking to sell farther west has to account for transportation costs when deciding whether it can compete for a customer’s business. Lower shipping costs and more predictable deliveries could make those sales possible. The same goes for businesses buying raw materials or components from suppliers across the country. A combined network would give them more direct access to those suppliers, helping them plan production and fill orders on time. For communities looking to attract new employers, those connections would be another reason to invest in Tennessee.

Lower costs and more reliable service will also shift freight traffic from trucking to rail. Due to its central location, Tennessee sees a high volume of trucks, with combination trucks accounting for 16% of travel on its interstate highways, according to a 2023 TRIP report. Just think about all the traffic here in Middle Tennessee on 65, 40, 24, 840 and 565. Between 2022 and 2050, freight moved annually by truck in the state is projected to increase 59% by weight and 105% by value, adjusted for inflation.

With increases in trucking come more damage to road infrastructure and higher costs to repair and maintain those roads. A national analysis by the Union of Concerned Scientists estimated that despite accounting for only 11% of travel, heavy-duty trucks are responsible for at least 91% of the wear and tear on U.S. roads. Reducing that wear would help limit the repair bills taxpayers have to cover.

Additionally, Tennessee faces an estimated $1 billion transportation funding gap for the 2027–28 fiscal year to maintain roads and bridges and continue current capacity investments. Population growth, rising construction costs, and revenue pressures are contributing to the shortfall. The Union Pacific–Norfolk Southern transaction will help reduce highway wear, with the companies estimating that 2.1 million truckloads nationwide would shift from highways to rail each year.

There are also safety concerns. From 2017 through 2021, an average of 155 people were killed annually in Tennessee collisions involving large trucks, according to TRIP. U.S. rail had one of its safest years on record in 2025, with the Association of American Railroads reporting a 14% decline in the overall train accident rate. Union Pacific and Norfolk Southern say they have submitted a unified safety integration plan to federal regulators to guide the combination of their operations.

Road safety and balanced budgets are daily concerns for local governments across the nation. When infrastructure needs updating, they have to find the funds. The Union Pacific and Norfolk Southern merger creates massive investments in critical rail infrastructure, without costing our government a dime.

As Nashville prepares to host the National League of Cities’ City Summit, November 19–21, an annual gathering of local leaders focused on helping communities grow, freight rail and the UP-NS merger should be a driver of the discussion.

Tennessee’s position as a logistics hub has been built through decades of investment and development. The proposed merger would further cement the state’s longstanding role in moving the nation’s commerce. The Surface Transportation Board should approve it.

Walter Blanks Jr. serves as the Executive Director of the Legacy Society.