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Former Antitrust Officials Urge Close Look at Rail Merger Rivals
The attorneys general say the deal would preserve only 0.9% of U.S. rail traffic and could still raise shipper rates.
- On Wednesday, a coalition of seven Republican state attorneys general urged the Surface Transportation Board to reject the proposed $85 billion merger between Union Pacific and Norfolk Southern, arguing the deal fails to serve the public interest or strengthen rail competition.
- The states contend the railroads' "Committed Gateway Pricing" arrangement fails to enhance competition, applying to only 0.9% of rail traffic while setting rates at the 70th percentile rather than a median benchmark.
- Union Pacific and Norfolk Southern have defended the merger, arguing it would create a coast-to-coast network, shift about 2.1 million truckloads annually to rail, and save shippers about $3.5 billion yearly through improved efficiency.
- The Surface Transportation Board will likely continue reviewing the merger into next year, while former antitrust officials recently urged the board to weigh competitor opposition carefully as a potential signal of efficiency gains rather than harm.
- Together, the combined railroads would operate about 50,000 miles of track across 43 states, raising state officials' concerns about reduced routing choices and higher rates for captive shippers in agriculture, mining, and manufacturing sectors.
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Former antitrust officials urge close look at rail merger rivals
(The Center Square) – Four former federal antitrust officials say regulators should take a close look at who is objecting to the proposed $85 billion merger between Union Pacific and Norfolk Southern.
·Washington, United States
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The wall around the UP-NS merger keeps getting higher
Key takeaway: Seven Republican attorneys general have joined the growing coalition urging the STB to kill America’s first proposed transcontinental railroad, citing a competition remedy that would cover less than 1% of rail traffic. The proposed multi-billion combination of Union Pacific (UP) and Norfolk Southern (NS), already the most scrutinized merger in American transportation history, faced its most politically inconvenient week yet. Seven…
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Total News Sources41
Leaning Left5Leaning Right9Center22Last UpdatedBias Distribution61% Center
Bias Distribution
- 61% of the sources are Center
61% Center
14%
C 61%
R 25%
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