Railroads salute America 250 as consolidation looms

Railroads salute America 250 as consolidation looms

Locomotives wrapped in the Stars and Stripes are chugging around the country in an ode to America 250 and railroads' place in that history.

Why it matters: The patriotism overlays messaging about a proposed merger that would transform the industry.

The latest: Union Pacific's Big Boy 4014 — the world's largest operating steam locomotive — will spend the Fourth of July in Philadelphia.

  • Union Pacific has also dedicated a presidential locomotive, No. 4547, to President Trump and donated to his White House ballroom project.

    • Between the lines: The trains are part of Union Pacific's lobbying push for federal approval of the Norfolk Southern deal.

    Zoom out: If approved, the deal would put pressure on CSX and BNSF, the other remaining eastern and western Class I railroads, to merge in return.

  • That would create a duopoly of major U.S. freight railroads. CSX and BNSF have been mum on whether they would pursue a deal to remain competitive.

    • All aboard: A pair of America 250-themed locomotives tugged CSX's business train across the Potomac River and into Washington's Union Station on Tuesday.

  • CEO Steve Angel remarked on CSX's pride in its nearly 200-year-old history, which it traces back to the nation's first common carrier, the B&O Railroad.

    • The CSX business train crosses the Potomac River on Tuesday on a ceremonial trip into Washington for America 250. Photo: Colin Campbell/Axios

    The intrigue: CSX, which opposes the Union Pacific deal alongside BNSF, quietly renamed the business train car formerly dedicated to its merger-resistant ex-CEO Joe Hinrichs.

  • It's now known as the "President's Car."

    • The bottom line: Railroad M&A is the biggest dealmaking story in domestic supply chains and the subtext to the America 250 pageantry.

    Go deeper:

  • Federal stake in Union Pacific could become a condition of Norfolk Southern merger
  • Revised Union Pacific-Norfolk Southern merger application accepted for federal review
  • Teamsters rail unions target merger ahead of midterms
  • Union Pacific donation came after White House visit