NITL release on Surface Transportation Board’s decision on UP/NS merger

The National Industrial Transportation League (NITL), the shippers’ voice since 1907, welcomes today’s decision by the Surface Transportation Board (STB or Board) to delay formal consideration of the second application submitted by Union Pacific Railroad (UP) to acquire Norfolk Southern Railway (NS).

NITL’s Executive Director, Nancy O’Liddy stated that, “this Board action demonstrates that even though the second submitted application is deemed ‘complete’ it is still lacking in transparency that is essential for the Board and stakeholders to conduct a thorough review of the impacts of this unprecedented transaction. More information is needed regarding how the combined UPNS will: 1) meet the public good; 2) enhance rail-to-rail competition; 3) mitigate anti-competitive practices involving gateway access and pricing, and joint asset ownership; and 4) be held accountable for service failures and increased fees.

NITL’s members generate roughly $878 billion in gross revenues while spending billions of dollars annually on freight transportation. Its mission includes advancing the views of shippers on freight transportation policy matters and in proceedings before federal government agencies. They include U.S. companies across a wide variety of industries who are engaged in shipping an array of bulk and packaged commodities within the United States and beyond. NITL’s members require efficient, competitive, and safe rail, maritime, and highway transportation systems to meet their supply chain requirements and the needs of their customers. O’Liddy further commented, “the proposed UP-NS merger will have profound implications on the efficacy of our nation’s freight rail system and entire supply chain, as well as shippers’ ability to effectively meet the needs of their customers and communities.”

“NITL has consistently been on the record as opposing further consolidation in the freight rail industry,” stated NITL’s Executive Director Nancy O’Liddy. “As a result of prior mergers, rail competition has been drastically reduced and many NITL members have facilities that are captive to only a single railroad. Despite past promises that rail customers would benefit from mergers through more efficient service, today captive rail customers pay increasingly higher prices for unreliable and inadequate service,” added O’Liddy.

O’Liddy concluded, “NITL will continue carefully evaluating the likely impacts on rail customers to ensure that the benefits of this proposed merger outweigh its harms. Rail shippers must benefit from guaranteed, long-term improved competitive service—not just empty promises.”