The National Association of Waterfront Employers (NAWE) today submitted a letter to the Surface Transportation Board (STB) expressing strong concerns with the proposed merger between Union Pacific Railroad and Norfolk Southern Railway.
NAWE urged the STB to undertake a rigorous evaluation of the merger’s potential impact on the intermodal shipping networks that underpin the nation’s supply chain and regional economies.
“Intermodal rail service is a critical link for U.S. ports and the businesses that depend on them,” said Carl Bentzel, President of NAWE. “Given the already limited competition in rail intermodal service, further consolidation could have significant consequences for port competitiveness, cargo flow, and regional economic development.”
NAWE argues that this merger would further concentrate the intermodal rail market, leaving only two major transcontinental intermodal service providers. A reduction in service options or prioritization of certain routes over others could diminish economic opportunities in port regions nationwide. For example, the Ports of Los Angeles and Long Beach rely heavily on rail—moving more than 60% of imports via intermodal service into Chicago and beyond. Any loss in competition or service reliability could ripple throughout the nation’s supply chain.
While the NAWE members maintain strong partnerships with many rail carriers, the association emphasized that consistent, competitive, and reliable intermodal rail service is essential for ports of all sizes to grow and remain economically viable.
“This decision has the potential to reshape the future of intermodal freight movement in the United States,” Bentzel said. “We urge the STB to carefully consider the long-term impacts on port communities, supply chain resilience, and the national economy.”
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