US Rail Merger: Attorneys General Weigh in on Competition, Security

Introduction

Attorneys general from nine states have urged the Surface Transportation Board (STB) to address their concerns regarding the potential merger of Union Pacific Railroad and Norfolk Southern Railway, citing potential impacts on competition and national security.

STB Review Request

In a letter dated November 14, the attorneys general requested that the STB conduct a detailed review of the proposed merger. They specifically asked the board to thoroughly examine the deal once the railroads submit their merger application.

Stakeholder Impact

The attorneys general emphasized the importance of assessing the merger’s effects on various stakeholders. The letter highlighted the need to determine the merger’s impact on farmers, workers, consumers, and manufacturers.

Economic Concerns

The letter warned against the potential for increased monopolistic power to hinder industry innovation and productivity. It also raised concerns about potential inflationary pressures on household budgets and the overall economic impact of the merger’s costs.

Legal Basis

The attorneys general reminded the STB that federal law mandates that a merger can only be approved if it aligns with the public interest.

Conclusion

The attorneys general from nine states have requested that the Surface Transportation Board carefully evaluate the proposed merger between Union Pacific Railroad and Norfolk Southern Railway, focusing on its potential effects on competition, national security, and various stakeholders, as well as its consistency with the public interest.

Company Summary

Union Pacific Railroad: A major freight-hauling railroad in the United States.

Norfolk Southern Railway: A major freight railroad in the United States.

Technology

Surface Transportation Board (STB): The federal agency responsible for regulating railroads in the United States.