Union Pacific and Norfolk Southern file merger application amid opposition
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The Surface Transportation Board today announced that it has received a major merger application from Union Pacific and Norfolk Southern, and that comments on the completeness of that application are due by Dec. 29.
Sen. Tammy Baldwin, D-Wis., today called on the STB to reject the application.
“As Wisconsin families watch the cost of just about everything skyrocket, the last thing they need is a rail merger that all but promises to raise prices and worsen already inadequate service for Wisconsin farmers, manufacturers, and businesses,” Baldwin said in a news release.
“Approving this merger would take us in the wrong direction — stifling competition, worsening service, and raising costs on consumers and businesses who are already facing growing headwinds because of the Trump administration,” Baldwin said.
“While President Trump accepts payouts from Union Pacific to fund his $400 million ballroom, I’m ready to hold his feet to the fire and demand this merger be rejected on behalf of the Wisconsin farmers, manufacturers, and consumers who simply cannot afford it.”
Since the 1950s, the rail industry has consolidated from over 100 Class I freight railroads to only six today, leaving U.S. manufacturers, utility companies, agricultural producers, and small businesses paying excessive rates despite poor service and reliability, Baldwin said.
The Fertilizer Institute said, “While we are still reviewing today’s STB filing, it is difficult to see how any coast-to-coast merger would improve this imbalance or meet the standard set out in the Surface Transportation Board’s merger rules.”
“Today railroads hold all the cards, and larger railroads only give carriers a bigger deck. Now that UP and NS have submitted their merger application, we urge the board to make the merger’s impact on carload shippers, including fertilizer and agriculture, a priority during the review process.
“The potential for this merger makes needed rail policy reforms to reset the balance between railroads and carload shippers even more critical.”
