According to Bloomberg, Canadian Pacific and Norfolk Southern are in talks about a possible merger.
While Canadian Pacific and Norfolk representatives refused to comment on the matter.
Canadian Pacific exploring the merger makes sense when looking at the failed merger it initiated last year with CSX Corp. last year.
The joining of the two companies has sent the Dow transports jumping immediately after Bloomberg reported the possible venture.
Amid the news, crude-by-rail is continuing its turn from boom to bust in the third quarter as carloads plunged 23.5% compared with the same quarter a year ago.
U.S. Class I railroads originated 101,167 carloads of crude oil, a number that fell 31,090 carloads from a year ago.
Carloads dropped nearly 9% from the second quarter.
Railroads have seen the business dry up as crude oil prices reach a territory where it’s no longer profitable to use more expensive fracking methods to drill for U.S. oil and then transport it long distances to market.