WASHINGTON, D.C. (RFD NEWS) — An antitrust lawsuit has been filed against Union Pacific Railroad and Kansas & Oklahoma Railroad, known as the K&O. The suit centers on increased rail traffic fees that plaintiffs say are making it more difficult for local grain farmers to earn a fair price for their crops.
“Through a secret agreement with the Kansas & Oklahoma Railroad to impose an exorbitant fees on rail traffic from western Kansas to eastern Colorado, Union Pacific Railroad Company has erected competitive and financial barriers on the railroad tracks it owns in the region that increase transportation costs and transit times, making it difficult for local grain farmers to earn a fair price for their crops,” said Tom Ajamie, Managing Partner at Ajamie LLP. “Union Pacific Railroad Company is preventing farmers and everyone else from obtaining lower prices.”
Union Pacific Railroad Company is seeking to merge with Norfolk Southern to form a transcontinental freight railroad, citing bottlenecks nationwide that slowfreight rail transit. With this lawsuit, Weskan Grain and Colorado Pacific Railroad also seek to make freight rail transportation more efficient by making it easier for rail traffic to move east to west on multiple lines, not just those owned by Union Pacific Railroad Company.
“This is not about attacking railroads. It is about restoring balance, transparency, and accountability to a system that rural America depends on,” said Stefan Soloviev, Chairman of Weskan Grain and Colorado Pacific Railroad. “Fair access and fair pricing are essential if we want agriculture in this country to thrive for generations to come.”
Will Bramblett, CEO of Weskan Grain, joined us on Tuesday’s Market Day Report to provide background on the case, noting that 13 farmers and two agribusinesses have now signed on to the lawsuit, highlighting concerns about competition and market access.
In his interview with RFD NEWS, Bramblett explained that the lawsuit focuses on an agreement tied to the newly rehabilitated Colorado Pacific Railroad and its impact on shipping costs and competition in the region. He also discussed whether this has been an ongoing issue and outlined Weskan Grain’s footprint, noting the company’s role in serving producers in the area.
Finally, he touched on how a potential merger between Union Pacific and Norfolk Southern could factor into the broader rail landscape, as well as what could happen if the current concerns are not addressed.
