Union Pacific: STB response part I: Multiple remedy paths reduce TRRA/KCT/TTX overhang; PO $301

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Union Pacific: STB response part I: Multiple remedy paths reduce TRRA/KCT/TTX overhang; PO $301

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Union Pacific

STB response part I: Multiple remedy paths

reduce TRRA/KCT/TTX overhang; PO $301

Reiterate Rating: BUY | PO: 301.00 USD | Price: 283.12 USD

STB filing addresses ownership & governance concerns 07 July 2026

This morning, Union Pacific submitted the first of its planned two-part response to the Equity

Surface Transportation Board’s (STB) request for supplemental information as part of its

bid for Norfolk Southern (see UNP note), addressing ownership and governance Ken Hoexter Research Analyst

questions related to 3 jointly owned rail infrastructure entities: the Terminal Railroad BofAS

Association of St. Louis (TRRA), Kansas City Terminal Railway (KCT), and TTX Co. We +1ken.hoexter@bofa.com646 855 1498

believe the filing is an incremental positive, as the submission reduces the likelihood Adam Roszkowski, CFA

that these issues become procedural merger obstacles, although the more consequential Research Analyst

BofAS

questions surrounding competition, shipper access, service commitments, and public +1 646 855 5498

benefits remain outstanding and will be addressed in UNP’s second response by July 27. adam.roszkowski@bofa.com

Offers multiple paths to address TRRA ownership

UNP proposed multiple ways to eliminate control concerns associated with TRRA, where

Stock Datait would own 57% of the terminal rail following the merger (UNP 42.8%; NSC 14.3%).

UNP outlined 5 alternatives, including divesting NSC’s stake to another owner or railroad Price 283.12 USD

(BNSF, CSX, CNI each have 14.3% stake), transferring shares to TRRA, and implementing Price Objective 301.00 USD

voting-right restrictions.