WASHINGTON — President Donald Trump on Friday said he approved of the proposed $85 billion merger between Union Pacific and Norfolk Southern. In Oval Office remarks reported by White House media, Trump said the tie-up that would create the first transcontinental freight railroad “sounds good to me. Union Pacific is a great railroad.” Trump also […]
Back in the day when railroads were squeezed under the thumb of the Interstate Commerce Commission and saddled with money-losing passenger service and dying branch lines, Class I railroads went through merger after merger to fend off financial collapse. The goal of those combinations was to eliminate duplicate routes, yards, shops, and headquarters in the […]
OMAHA, Neb. — Union Pacific CEO Jim Vena and Norfolk Southern CEO Mark George first broached the possibility of a transcontinental merger during an otherwise routine phone call on Dec. 18, the railroads disclosed in a preliminary shareholder proxy filed on Tuesday. The proxy form provides a detailed timeline for their merger discussions, including the […]
WASHINGTON — The Rail Customer Coalition, which represents the manufacturing, agriculture, and energy industries, has told federal regulators that Union Pacific’s proposed acquisition of Norfolk Southern will stifle rail competition and drive up costs. “Past rail mergers have shown what happens when consolidation goes unchecked: service suffers, costs increase, and jobs disappear,” the coalition wrote […]
LAGUNA BEACH, Calif. — Union Pacific CEO Jim Vena and Norfolk Southern CEO Mark George say the interline partnerships that BNSF, CSX, and Canadian National have announced recently are proof that the proposed UP-NS merger will boost railroad competition. “Just the mere idea of having a transcontinental railroad has already enhanced competition … And I […]
WASHINGTON — The trade group representing chemical manufacturers says a Union Pacific-Norfolk Southern merger would reduce rail competition and increase freight rates, which in turn will contribute to inflation that will harm American consumers, manufacturers, and farmers. “The additional costs that are the likely result of this merger are ultimately going to hit everyday Americans,” […]
What a week this was for unexpected twists and turns in the Class I railroad merger landscape. First, on Monday Berkshire Hathaway Chairman Warren Buffett said the company would not bid on CSX or Norfolk Southern, which had been viewed as potential merger partners for the Berkshire-owned BNSF Railway. A BNSF-CSX combination, in particular, had […]
WASHINGTON — President Donald J. Trump on Wednesday (Aug. 27) fired Surface Transportation Board member Robert E. Primus, breaking a 2-2 partisan split at the rail regulator while leaving it two members short of full strength just months before it is expected to receive the Union Pacific-Norfolk Southern merger application. The Wall Street Journal first […]
CALGARY, Alberta — Canadian Pacific Kansas City said today that Class I railroad mergers are not necessary and that it isn’t interested in participating in an immediate round of consolidation. “We believe that a transcontinental merger would trigger permanent restructuring of the industry and result in a disproportionately large railway whose size and scope would […]
OMAHA, Neb. — BNSF Railway wants to date CSX — but has no interest in getting married. Five days after Union Pacific announced its $85 billion deal to acquire Norfolk Southern, Berkshire Hathaway Chairman Warren Buffett and CEO designate Greg Abel told CSX CEO Joe Hinrichs that they would not bid for the Eastern railroad. […]
Refrigerated intermodal company C.R. England Trucking and transloading and logistics firm The Transload Group on Monday announced their support for the Union Pacific-Norfolk Southern merger, citing the benefits of a transcontinental rail operator. The Salt Lake City-based C.R. England said it offered “strong support” for the merger, saying it believes the “coast-to-cost integration marks a […]
WASHINGTON — Union Pacific has bolstered its lobbyist efforts on Capitol Hill to support its effort to merge with Norfolk Southern. Politico reports the railroad has hired a team from the firm of Squire Patton Boggs led by former U.S. Rep. Bill Shuster (R-Pa.), who spent 18 years in the House, including six as chair […]
