NASHVILLE, TENN. (RFD-TV) — Last week, shareholders of both Union Pacific and Norfolk Southern approved their merger. When the ink is dry, it will create the first transcontinental railroad in the United States.
The proposed merger between Union Pacific and Norfolk Southern is drawing mixed reactions across the transportation and agriculture sectors. The Surface Transportation Board (STB) has officially taken up the review, a process that will determine whether the consolidation would strengthen or weaken competition within the rail industry. With significant implications for grain movement, export logistics, and shipping reliability, stakeholders are watching the proceedings closely — and not all agree on what the merger could mean.
Lawmakers are also worried about future rail choices. That is why Sen. Tammy Baldwin, D-Wisc., filed the Reliable Rail Service Act earlier this year.
“They preference their biggest customers, and they don’t recognize that they have a common carrier duty to all shippers,” Sen. Baldwin explained. “And so, my Reliable Rail Service Act helps us build a strong economy and lower costs for consumers and shippers by requiring the freight rail services to be reliable and to understand what their common carrier obligation means.”
Baldwin said her bill would put a definition to that term. Once that is accomplished, she says it will help the enforcement agencies hold rail shippers accountable.
Mike Steenhook, executive director of the Soy Transportation Coalition, told RFD-TV News us there may be concern about consolidation. He says the pressure is now on other rail lines to follow suit, and warns that some customers are worried they will lose significant negotiating power.
Steenhoek joined us on Friday’s Market Day Report to break down the industry’s response, what the STB will consider, and how the outcome could shape the future of agricultural transportation.
In his interview with RFD-TV News, Steenhoek explained that some ag shippers believe a merger could lead to greater efficiency and improved service, while others fear reduced competition and higher freight costs. He outlined the key factors the STB will evaluate, including market consolidation, service performance, and potential impacts on captive shippers. He also discussed whether political alignment within the STB could influence the decision, shared his perspective on what the merger might mean for U.S. agriculture as a whole, and provided insight on the expected timeline for the board’s review, noting that the process could stretch well into next year.
Before wrapping up, Steenhoek also provided an update on Mississippi River conditions. After months of concern about a fourth consecutive year of low water levels, he shared where river stages and shipping conditions stand today as the post-harvest season continues.
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