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.

“This merger enhances competition and delivers real public benefits that make ...