WASHINGTON – Senators John Hoeven (R-N.D.) and Amy Klobuchar (D-Minn.) led a bipartisan effort calling on the Surface Transportation Board (STB) to closely scrutinize the proposed merger of Union Pacific Railroad (UP) and Norfolk Southern (NS) Railway and ensure competition in the railroad industry over the long term. In a letter to STB Chairman Patrick Fuchs, Vice Chair Michelle Schultz and Member Karen Hedlund, the senators stressed the potential disruptions to U.S. rail service resulting from a merger of this scale and outlined the need for the STB to fully analyze the potential impact on long-term competition, including for agriculture producers, many of whom already face limited options for accessing rail service.
“The STBs post-2001 ‘Major Rail Consolidation Procedures’ were adopted specifically to place heightened emphasis on whether Class I railroad mergers enhance, rather than merely preserve, competition… The proposed UP/NS merger will be the first to come before the Board under these rules, and it is essential that you establish a strong precedent and apply these heightened standards in the way they were intended,” wrote the senators. “If approved, a combined UP/NS would handle more than 40 percent of all U.S. freight rail traffic… a transcontinental system spanning 50,000 route miles across 43 states. Service interruptions of this magnitude could have severe consequences, especially for agricultural producers. Time-sensitive shipments during harvest could be delayed or spoiled, export windows could be missed, and access to global markets could be sharply reduced.
“We look forward to working with you to ensure the STB continues to promote an efficient, competitive, and economically viable freight rail network that serves the public interest,” concluded the senators.
The Hoeven-Klobuchar letter was co-signed by Senators Tim Sheehy (R-Mont.), Martin Heinrich (D-N.M.), Bill Cassidy (R-La.), Tina Smith (D-Minn.), Steve Daines (R-Mont.), Raphael Warnock (D-Ga.), Roger Marshall (R-Kan.), Patty Murray (D-Wash.), Mike Rounds (R-S.D.), Ruben Gallego (D-Ariz.), Roger Wicker (R-Miss.), Tammy Baldwin (D-Wisc.), Jim Banks (R-Ind.), Tammy Duckworth (D-Ill.), Joni Ernst (R-Iowa) and Dick Durbin (D-Ill.). The full text of the senators’ letter can be found here.
This effort has been endorsed by the following organizations: Agricultural Retailers Association (ARA), Agriculture Transportation Coalition (AgTC), Alliance for Chemical Distribution (ACD), American Chemistry Council (ACC), American Crystal Sugar, American Farm Bureau Federation (AFBF), Freight Rail Customer Alliance (FRCA), Greater North Dakota Chamber of Commerce, Minn-Dak Farmers’ Cooperative, Montana Agricultural Business Association, National Industrial Transportation League (NITL), National Farmers Union (NFU), North Carolina Agribusiness Council, North Dakota Agricultural Association, North Dakota Farmers Union, North Dakota Petroleum Council, North Dakota Grain Growers Association, North Dakota Grain Dealers Association, North Dakota Trade Office and the Southern Rail Commission.