Shippers and Unions Raise Concerns Over UP-NS Merger

The UP-NS merger could reshape U.S. railroads, but many stakeholders fear reduced competition and service disruptions across the freight and passenger sectors. This is reported by the railway transport news portal Railway Supply.

Shippers Express Doubts About UP-NS Merger

Union Pacific’s $85 billion proposal to acquire Norfolk Southern would create the first coast-to-coast Class I freight railroad in the United States.

The merged company would span over 50,000 miles and operate in 43 states, surpassing all existing networks in size and reach.

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Because of its scale, the UP-NS merger must be approved by the Surface Transportation Board. And gaining that approval could be challenging due to potential antitrust concerns and market dominance issues.

The American Chemistry Council was the first major industry group to push back. It warned that a transcontinental combination would further limit shipper choices.

Currently, four freight railroads control over 90% of the U.S. market—two dominate the West, and two lead the East.

The council’s statement criticized growing consolidation, stating that it leaves manufacturers, farmers, and energy producers with few competitive options.

High shipping rates and unreliable freight service, it said, could worsen if the UP-NS merger proceeds.

Unions and Advocacy Groups Oppose the UP-NS Merger

Labor unions have also voiced concerns about the merger’s implications.

The Brotherhood of Locomotive Engineers and Trainmen called for negotiations to continue without delay and raised concerns about job security.

Additionally, SMART Transportation Division and the IAM Union Rail Division warned that such a merger could impact network safety and reduce workforce stability.

Transport Workers Union president John Samuelsen bluntly stated that “there is no world where Union Pacific should be controlling a coast-to-coast rail network.”

Passenger advocates also joined the opposition

The Rail Passenger Association reminded the public that both Union Pacific and Norfolk Southern face lawsuits over delaying Amtrak trains.

Its president, Jim Mathews, emphasized that Class I railroads have focused more on shareholder profits than on reliable service, leading to shipper losses to trucking.

He concluded that passengers and freight customers have every reason to be skeptical.

So, while the UP-NS merger promises efficiency gains, its impact on market fairness, labor, and passenger service will be the central issues in the regulatory debate.

Source: railfan.com

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