Representative Dusty Johnson (R-SD) and 46 of his colleagues sent a letter to the Surface Transportation Board (STB) encouraging the board to conduct a rigorous and comprehensive review of the proposed rail merger between Union Pacific (UP) and Norfolk Southern (NS).
The letter outlines the STB’s merger requirements and asks that, in the absence of demonstrable, clear, measurable, and substantial benefits for American consumers, manufacturers, and producers, the STB block this merger from proceeding.
Alliance for Chemical Distribution (ACD) President and CEO Eric R. Byer released the following statement applauding the letter:
“The chemical distribution industry relies on an efficient and safe freight rail system to deliver the chemical products essential to Americans’ health and safety. For months, industry stakeholders, who use freight rail day in and day out, have made their position clear: this mega-merger proposal will lead to a significant consolidation of market power, resulting in major service disruptions and continued price hikes. The stakes are too high for shippers nationwide, and a merger of this size would further exacerbate the challenges faced by ACD members.
“Today’s letter reflects the growing opposition to this proposed mega-merger. ACD applauds Representative Johnson for leading this effort to highlight past rail merger failures and to call for the STB’s rigorous and comprehensive review of the UP-NS merger application. A mega-merger will not preserve competition and will not serve the public’s interest. Competition within the freight rail industry should be protected and enhanced, and any proposed merger not demonstrating tangible benefits to American shippers, businesses, and consumers must be rejected.”
To read the full letter sent to the STB, click here.
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