UP-NS merger may remake the U.S. railroads, and BNSF presses shipper challenges for the $85 billion deal as it might lessen competitiveness, displace industries, as well as raise freight customers’ risk.

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

UP-NS merger raises competition and shipper concerns

UP-NS merger and BNSF’s reaction

BNSF Railway asked its customers to oppose the potential sale of Norfolk Southern by Union Pacific. According to the company, the UP-NS merger poses the risk of reducing competition as well as compromising consistent rail delivery throughout vital sectors.

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In an September 29 alert, Executive Vice President Tom Williams at BNSF asked shippers to pass on worries about the Surface Transportation Board. He stressed the regulators needed the words directly from stakeholders who rely on affordable freight transportation.

UP-NS merger industry and economic effect

The UP-NS merger would establish the first mono-U.S. transcontinental railroad system, but raise long-term implications. Its supporters point up the efficiencies generated, but the BNSF cautions it may decrease market options as well as raise the financial risk of numerous segments.

To strengthen its case, BNSF published a white paper arguing the merger is unnecessary. The document claims Wall Street investors, not customers, drive the proposal. BNSF insists it can deliver immediate service improvements without massive structural changes.

Due to these threats, the BNSF gave customers step-by-step advice on how to express opposition in the regulatory process. The firm emphasizes the point where individual comments may influence the board’s ruling as well as safeguard competition for future rail shipment.

Source: www.progressiverailroading.com

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What is the UP-NS merger?

UP-NS merger is the planned $85 billion purchase of Norfolk Southern by Union Pacific, forming the first singular U.S. transcontinental railroad.

Why does BNSF oppose the UP-NS merger?

BNSF thinks the UP-NS consolidation diminishes competition and poses the risk of disrupting service. Terms are described in its white paper on the economic effect.

How could shippers oppose the UP-NS merger?

BNSF posted on its website step-by-step procedures how shippers could provide comment on the Surface Transportation Board.

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