BNSF, UP, NS Merger: Intermodal Lanes & Rail Industry Concerns

Introduction

BNSF Railway President and CEO Katie Farmer responded to comments made by Union Pacific Railroad officials regarding a proposed merger with Norfolk Southern Railway. The comments were made at a conference in Chicago.

UP’s Merger Proposal

Union Pacific Railroad officials stated that over 300 intermodal lanes would not be closed if the merger with Norfolk Southern Railway is approved. These lanes currently have an origin or destination on BNSF and NS or Union Pacific and CSX routes.

BNSF’s Response

Katie Farmer, President and CEO of BNSF Railway, issued a statement in response to Union Pacific’s comments. She stated, “I’m sure the nation’s rail customers are relieved that UP is committing to keep all current intermodal lanes open if their merger with NS is approved.”

Concerns Regarding Interchange Partners

Farmer’s statement also noted concerns regarding the potential impact on interchange partners. She added, “UP highlighted in prior rail industry mergers that the new merged railroad usually raises rates on competing interchange partners to the point of making those lanes economically uncompetitive.”

Conclusion

BNSF Railway responded to comments made by Union Pacific Railroad officials regarding the proposed merger with Norfolk Southern Railway. The response addressed concerns about the impact on intermodal lanes and potential rate increases for interchange partners.

BNSF Railway

BNSF Railway is a major freight railroad company.

Union Pacific Railroad

Union Pacific Railroad is a major freight railroad company.

Norfolk Southern Railway

Norfolk Southern Railway is a major freight railroad company.

CSX

CSX is a major freight railroad company.