Railroads Say Megadeal Would Cut Shipping Costs by $3.5 Billion

Railroad operators Union Pacific Corp. and Norfolk Southern Corp. say their proposed $72 billion deal would save shippers $3.5 billion annually in an amended merger application filed Thursday.

A transcontinental operator, which would be created by the merger, would offer a single-line service that’s more competitive on price with long-haul trucking and remove 2.1 million trucks from the roads in the process, according to a filing to the industry regulator, the Surface Transportation Board. It would also save shippers money on inventory and equipment costs, the companies say.