The House of Representatives responds to the Union Pacific Corporation and Norfolk Southern Corporation's (UP-NS) merger proposal. Rep. Dusty Johnson (R-SD) and 46 of his colleagues sent a letter to the Surface Transportation Board (STB) to encourage the board to conduct a rigorous and comprehensive review of the planned rail merger.
Outlining the STB’s merger requirements, the letter calls for a comprehensive review of how the merger would benefit U.S. consumers, manufacturers, and producers. Additional inquiries, such as the move's impact on competition, will also need to be addressed.
As freight railways remain a secure method for transporting cleaning chemicals, the proposal raised concerns from industry groups, including the Alliance for Chemical Distribution (ACD). ACD has adamantly opposed the merger agreement, recently releasing its own statement to applaud the letter submission:
“Today’s letter reflects the growing opposition to this proposed mega-merger. ACD applauds Representative Johnson for leading this effort to highlight past rail merger failures and to call for the STB’s rigorous and comprehensive review of the UP-NS merger application," says Eric R. Byer, ACD President and CEO. "A mega-merger will not preserve competition and will not serve the public’s interest. Competition within the freight rail industry should be protected and enhanced, and any proposed merger not demonstrating tangible benefits to American shippers, businesses, and consumers must be rejected.”
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