For the first time in 61 years, there is a split between the class 1 freight railroads in how they are pursuing the next round of national talks with labor unions that begins on Friday.

Union Pacific’s third-quarter profit grew 9% as West Coast imports surged and drove the railroad’s total volume up 6%.

The federal government is handing out $2.4 billion in railroad grants to help pay for 122 projects nationwide with more than ...