WASHINGTON — The attorneys general from nine states have asked the Surface Transportation Board to give Union Pacific’s proposed acquisition of Norfolk Southern a thorough review, arguing that the merger will stifle competition, raise rates, and hurt manufacturers and agricultural producers.
“An America First economy will not work if high internal shipping costs kneecap American companies’ ability to compete with foreign manufacturers. The downstream impact of the merger poses significant risk not just for our industrial base but also our agricultural producers. Ultimately, then, this merger could compromise our national security,” the attorneys general wrote in a Nov. 14 letter to the board.
The letter was signed by the attorneys general for Tennessee, Kansas, Florida, Mississippi, Iowa, Montana, North Dakota, South Dakota, and Ohio.
“Our states are home to a diverse and dynamic set of industries, including chemical manufacturing, energy production, and agriculture. These key strategic American industries rely heavily on freight rail to move essential goods safely, efficiently and affordably. Yet, as the railroads have consolidated, many shippers have seen rail service suffer while costs have increased dramatically. Further freight rail consolidation could make these problems worse,” the attorneys general wrote.
UP and NS say their $85 billion combination — which would create the first coast-to-coast railroad in the U.S. — would improve service, take trucks off the highway, increase rail competition, and boost the economy by making American companies more competitive in global markets.
They expect to file their merger application in early December.
