WASHINGTON, April 29 (Reuters) - A coalition of business

groups, rival railroads and organized labor on Wednesday said it

opposes Union Pacific's ( UNP ) proposed $85 billion merger with

Norfolk Southern ( NSC ), a day before the pair are set to file

a revised application with the Surface Transportation Board.

The coalition - which includes the American Chemistry

Council, the American Farm Bureau Federation, Teamsters Rail

Conference, BNSF Railway, CPKC Railway, Alliance for Chemical

Distribution, National Industrial Transportation League and

Vinyl Institute - argues the deal will reduce competition and

increase costs for manufacturers, farmers and consumers.

The deal would create the first U.S. coast-to-coast freight

rail operator and could reshape the country's freight rail

industry, helping to streamline operations and eliminate

interchange delays in hubs like Chicago.

Union Pacific ( UNP ) said the groups opposing the merger were

distorting facts and that its revised application "clearly

reinforces the case for a coast-to-coast railroad, making rail

more competitive to other modes of transportation, reducing

costs and delivering benefits that will make American goods more

affordable."

The railroads filed their nearly 7,000-page application on

December 19, saying the combination would improve service

reliability, divert freight from trucks to rail, retain shipper

options and deliver broad public benefits while protecting union

jobs.

President Donald Trump has publicly backed the proposed merger,

which would have been unthinkable under the previous Biden

administration and its broader crackdown on consolidation.

The Trump administration has tended to approve large

transactions or impose remedies rather than block them outright.

Some Republican state attorneys general and other state

officials have raised concerns about the deal.

The railroad industry has struggled with volatile freight

volumes, rising labor and fuel costs, and growing pressure from

shippers over service reliability.

It is the first major proposed railroad merger to be reviewed

under the stricter framework put in place more than two decades

ago, which requires applicants to prove their transaction would

enhance competition - not merely preserve it - while delivering

demonstrable public-interest benefits.