Union Pacific, Norfolk Southern merger plan roiled as feds order hot-button video released amid ‘retaliation’ concerns

A controversial video has upset proceedings involving an $85 billion railroad merger, with federal regulators issuing a rare rebuke over concerns about retaliation threats against stakeholders.

Freight giants Union Pacific and Norfolk Southern are proposing a union to create the nation’s first transcontinental railroad.

On Wednesday, the U.S. Surface Transportation Board ordered UP to make public a video of a speech by CEO Jim Vena to shippers where he suggested that those opposing the merger could face higher rates.

“Stakeholders must be able to participate without fear of repercussions,” the STB said in a ruling that denied UP’s request to keep the speech video confidential.

Regulators also “invited stakeholders to share with the board information regarding any perceived, threatened, or actual retaliation.”

Numerous freight rivals and shippers contend a merger will stifle competition, while some suburbs have warned it could spike freight traffic and cause delays.

UP and Norfolk Southern argue that joining forces will increase efficiency and expedite deliveries.

In a speech to the Southwest Association of Rail Shippers, Vena appeared to double down.

He noted that if the merger isn’t approved, “Union Pacific will still be there. And if I stick around, which I probably will, I’ll probably increase everybody’s rates that said they didn’t want a seamless railroad by 3 or 4 extra percent to teach you a lesson.”

The Daily Herald has reached out to UP for a comment.

The railroad previously told Trains magazine that “it’s disappointing that a comment was taken out of context and is being used to create a narrative that detracts from the real benefits of a single-line transcontinental railroad. Union Pacific did not threaten anyone.”

This is a developing story and will be updated.

mpyke@dailyherald.com