Top Senate Democrat criticizes Union Pacific deal to buy Norfolk Southern

Senate Democratic leader Chuck Schumer on Thursday criticized Union Pacific's plan to acquire Norfolk Southern in a $85 billion deal that would create the first U.S. coast-to-coast freight rail operator as a move toward monopoly.

Schumer said the deal would push "us even further down the road of dangerous consolidation and monopoly power... This is a hostile takeover of America’s infrastructure."

"Decades of railroad mergers have led to worse service, worse safety, worse working conditions, higher costs for shippers – which ultimately means higher prices for consumers," he added.

Asked about Schumer's remarks, Union Pacific said it and Norfolk Southern "are committed to preserving union jobs, growing our workforce, and reaching areas in America not currently served as more goods transition to rail."

"This deal is focused on moving America forward, supporting re-industrialization and moving products more efficiently across the nation," it said. Norfolk declined to comment.

The Surface Transportation Board on Wednesday disclosed Union Pacific and Norfolk Southern had formally filed a notice of intent to combine, triggering the U.S. regulatory review process.

The STB said the railroads intend to file their application by January 29. Once filed, the board will consider the application and set a schedule for the merger review that could take a total of 12 to 18 months.

Schumer cited opposition to the deal by the transportation division of SMART, the International Association of Sheet Metal, Air, Rail and Transportation Workers, the largest railroad union.

If approved, the deal "would cut down the industry from four major players to just three," he said.

Schumer and other Democrats in 2023 pushed for new rail safety legislation to tighten rules on trains carrying explosive substances like the Norfolk Southern-operated train that derailed in East Palestine, Ohio, catching fire and releasing over a million gallons of hazardous materials and pollutants.

Many Republicans opposed the bill and it never received a vote by full House or Senate.