Railroads say freight merger application falls short; UP says rivals are grandstanding

Four of the nation’s largest railroads hope to throw a wrench in plans by rivals Union Pacific and Norfolk Southern to merge into one huge freight carrier.

Officials with BNSF, CPKC, CSX and CN railroads recently filed objections with the U.S. Surface Transportation Board charging that the merger application was incomplete and flawed.

The STB is expected to address the completeness of the submission sometime this month.

UP and Norfolk Southern leaders have touted the union as “an unprecedented opportunity” to create a transcontinental railroad that will offer faster and more efficient service with lower supply chain costs across 43 states.

But separate filings by the four rivals contend the application failed to prove the merits of the merger and how it would be in the public’s interest. They also say the application omitted a full copy of the merger agreement, among other criticisms.

The application “only superficially grapples with the serious issues the proposed merger creates for shippers, American businesses, the rail industry, and the American economy,” BSNF attorneys wrote.

CPKC, which is the product of a 2023 union between Canadian Pacific and Kansas City Southern railroads, argues the applicants didn’t support claims of shifting over 2 million truckloads of cargo on highways to rail.

CN contends UP and Norfolk Southern failed to prove how the merger would improve competition.

The two freight carriers shot back saying they had filed 6,700 pages of information proving the application offers an “unprecedented opportunity to drive growth, enhance competition, and create a more accessible, sustainable, and lower cost supply chain option that will benefit American businesses and consumers.”

Both urged the board to reject efforts to “delay and prolong this proceeding.”