The combination of two large rail companies would create the first coast-to-coast network, but the deal could reduce competition.

Stagnant volumes that have shifted to the trucking sector over the years appear to support the arguments for railroad consolidation.

Union Pacific and Norfolk Southern confirmed that they are in “advanced” merger talks that would create a single U.S railroad with service stretching from the East to the West Coast. The Associated Press reported last week that the companies were discussing a tie-up but neither company acknowledged that until Thursday morning.