NASHVILLE, TENN. (RFD NEWS) — New details on the proposed rail merger between Norfolk Southern and Union Pacific. The Surface Transportation Board (STB) has rejected the initial application, citing missing key information.
The STB says the decision does not mean the merger is impossible. Both companies now have the opportunity to revise and resubmit their application. The initial paperwork was more than 6500 pages long. The STB says details on market share were missing, along with other contractual information.
Groups like the Soy Transportation Coalition (STC) have been watching the process since the merger was proposed. In a recent interview with RFD NEWS, STC Executive Director Mike Steenhoek says there are concerns across the ag spectrum about consolidation if that merger goes through.
“People point to the fact that this is not our first rodeo — we’ve had mergers, acquisitions, and consolidations within the rail industry for a number of decades,” Steenhoek explains. “What that does is it often results in higher rates, a decline in service, and, for agriculture and other industries, what you want is as many transportation providers competing for your business. That’s good for us, and when, all of a sudden, you start eliminating or reducing those transportation providers, you start changing that competitive balance away from the customer, agricultural shippers, in our case, or the railroad. So rightfully, there are a number of shippers who are very concerned about this.”
Leaders at Union Pacific say they have received more than 2,000 letters of support for the merger. STB says that while the application can be resubmitted, it will require another comprehensive review.
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