BNSF petitions STB over UP–SP merger conditions

BNSF petitions STB to review how conditions from the 1996 Union Pacific–Southern Pacific merger are being applied, arguing that the commitments made nearly three decades ago are no longer being fully honored. The company’s position is reflected both in coverage from Railway-News and in a BNSF news release.

Why BNSF petitions STB over UP/SP merger conditions?

According to BNSF, Union Pacific’s conduct has limited competitive rail access for shippers, even though obligations were set during the Union Pacific–Southern Pacific merger.

This is reported by the railway transport news portal Railway Supply.

The railroad says it has returned to these issues repeatedly — through negotiations, oversight processes and earlier petitions — yet, in its view, those steps have not produced lasting compliance with the UP/SP merger commitments that were intended to secure BNSF access in certain markets.

Link to the proposed Union Pacific–Norfolk Southern merger

BNSF’s petition arrives shortly after Union Pacific announced plans for a proposed merger with Norfolk Southern, which, in the company’s view, raises fresh questions about rail sector consolidation and competition.

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Against that backdrop, BNSF is asking the Surface Transportation Board to look at how the earlier UP/SP merger conditions have been implemented before any new consolidation is considered — a point also noted in coverage by Railway Supply.

Jill Mulligan, BNSF’s Executive Vice President and Chief Legal Officer, warns that, with Union Pacific now putting forward what she calls another unprecedented merger involving Norfolk Southern, the stakes for shippers nationwide could not be higher. She underscores that, before any new consolidation moves ahead, the board should make sure the commitments made during the UP/SP merger are honored and that competition is, at a minimum, preserved in line with the prior merger standards.

Protecting competitive rail access for shippers

In its filing, BNSF asks the Surface Transportation Board to review how the Union Pacific–Southern Pacific merger conditions have been carried out, to enforce provisions intended to guarantee BNSF access in specific markets, and to adjust those conditions if needed to prevent further negative competitive impacts. The petition also calls for a procedural schedule so that all parties can submit evidence for the board to consider.

BNSF stresses that adequate competition underpins dependable service and fair pricing for shippers. The railroad argues that ongoing issues linked to the earlier UP/SP merger must be examined and resolved before any further consolidation takes place in the rail sector, so that competitive rail access for shippers is maintained.

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