Union Pacific said cargo owners in Kentucky, Ohio and Michigan would benefit from its proposed US$85 billion acquisition of Norfolk Southern Railway, giving them more direct access to West Coast ports without costly trucking moves, reports New York's Journal of Commerce.

Beneficial cargo owners in Cincinnati, Detroit and Louisville often prefer East Coast ports because routings can be simpler and cheaper. From the West Coast, containers are railed to Chicago where shippers either hire trucks for hundreds of miles or pay for a crosstown dray, a transfer that can add a full day.

UP chief executive Jim Vena said shippers want to rail as far as possible without trucking through multiple cities. He noted that instead of hauling containers 400 miles, the merger could reduce drays to 50 miles or less, easing congestion in Chicago.

Railroads move more than 140,000 containers annually between Los Angeles-Long Beach and inland cities including Cincinnati, Cleveland, Columbus, Detroit and Louisville, according to US Surface Transportation Board data. Another 40,000 boxes move from Seattle-Tacoma to the same destinations.

Exporters would also gain, UP said, loading boxes closer to warehouses and shipping on a single railroad to the West Coast. Executive vice president of sales Kenny Rocker said eliminating crosstown drays costing $150 to $200 would deliver savings and keep freight on rail.

UP confirmed it will file a formal merger application with regulators in early December, including estimates of trucks removed from highways. Other railroads have also reshaped intermodal offerings, with BNSF and CSX launching new routes in August and Canadian National with CSX extending services in September.

No ocean carrier partners have publicly endorsed or opposed the deal. UP acknowledged carriers such as Ocean Network Express and Evergreen have not provided letters of support. Mr Vena said he was comfortable with their decision, noting some companies prefer not to take a public stance.